Chp 11 Accounting
Using the information from above... 2. The journal entry to record the March 21st sale of Treasury Stock would include a: A. credit to Treasury Stock of $21,500 B. debit to Additional Paid in Capital - Treasury Stock of $2,500 C. credit to Treasury Stock of $24,000 D. debit to Common Stock of $21,500 E. credit to Additional Paid in Capital - Treasury Stock of $3,000
credit to Treasury Stock of $21,500
A company's Dec 31, 2015 equity accounts are shown below: Preferred Stock (7%, $100 par, cumulative, 8,000 authorized) $ 400,000 Common Stock ($10 par, 200,000 shares authorized) 1,000,000 On April 1, 2015, 25,000 shares of common stock had been issued when the market price of the stock was $15. On August 31, 2015, 30,000 shares of common stock had been issued in exchange for some land when the stock was trading at $18 per share. No new shares of preferred stock were issued during the year. If the company reported net income of $200,000 in 2015, what are the earnings per share? (Round to the nearest cent.) A. $2.33 B. $2.00 C. $2.71 D. $1.92 E. $1.72
$2.33
Using the information from above... 3. What is total amount of dividends declared and paid in 2015? A. $34,000 B. $31,700 C. $33,700 D. $32,000 E. $38,800
$33,700
Using the information from above... 4. What is total stockholders' equity as of December 31, 2015? A. $4,467,350 B. $4,502,550 C. $4,470,350 D. $4,468,850 E. $4,533,350
$4,468,850
The stockholders' equity section of the balance sheet of a company reveals the following information for the year ended December 31, 2015. No additional shares of preferred stock have been issued and no dividends were in arrears. Preferred Stock (6%, $20 par, cumulative, 5,000 shares authorized, 2,000 issued and outstanding) Common Stock ($5 par, 100,000 authorized, 80,000 issued, 75,000 outstanding) On December 31 of each of the following years, the company declared the following cash dividends: 2015 $ 0 2016 $5,500 2017 $8,750 6. Determine the total amount of dividends that the common stockholders received during the years 2015-2017: A. $0 B. $9,450 C. $6,350 D. $7,050 E. $8,750
$7,050
Mark the following statements as true or false and select the appropriate answer below. ___ Stock dividends will reduce total Stockholders' Equity. ___ Stockholders' equity is reduced at the time that a cash dividend is declared. ___ One reason that a company may choose to issue equity over debt is that dividends will help reduce the company's tax burden.
false, true, false
Mark the following statements as true or false and select the appropriate answer below: ___ Par value has no relationship to market value of stock. ___ Stock splits reduce total stockholders' equity and assets. ___ Treasury stock is listed on the balance sheet as either a marketable security or LT investment, depending when the company plans to sell it. A. True, True, True B. True, False, True C. True, False, False D. False, True, True E. False, False, False
true, false, false
The Stockholders' Equity accounts of a corporation on January 1, 2015, were as follows: Preferred Stock (5%, $10 par, cumulative, 5,000 shares authorized) $ 35,000 Common Stock ($5 par, 500,000 shares authorized) 750,000 Additional Paid in Capital - Preferred 205,800 Additional Paid inCapital - Common 2,220,000 Retained Earnings 857,000 During 2015, the corporation had the following transactions and events relating to its stockholders equity. Jan. 2 Purchased 2,500 shares of its own common stock to add to the Treasury at a cost of $53,750. Feb. 21 Issued 10,000 shares of common stock in exchange for a building. On the date of the exchange, the FMV of the building was $212,000 and the stock was trading at $20.25 per share. Mar. 21 Sold 1,000 shares of treasury stock - common for $24 per share. Nov. 14 Issued 500 shares of preferred stock for $36,000. Dec. 31 Determined that net income for the year was $226,000. Dividends were declared and paid during December. These dividends included a $0.20 per share dividend to common stockholders of record as of December 20. There are no dividends in arrears. 1. How many shares of common stock are outstanding as of December 31, 2015? A. 160,000 B. 506,500 C. 508,000 D. 468,000 E. 158,500
$158,500
9. Determine the financial effect on the day that dividends are declared if they won't be paid until a future date: Assets, Liabilities, SHE; NI; RE
A-no effect L- increase SHE- decrease NI- no effect RE- decrease
A company reported the following amounts on its balance sheet at January 1, 2015: Common Stock, $10 par $ 25,500 APIC- Common 75,200 Retained Earnings 93,000 On Nov. 5, 2015 the company declared and distributed a 4% stock dividend on common stock when the stock was selling at $23 per share. On December 31, 2015, the company reported yearly net income to be $32,000. What is the Dec 31, 2015 balance in Retained Earnings and APIC - Common after closing entries?
Retained Earnings= $122,654 APIC - Common $76,526
