music chapt 10
par value is also referred to as
legal capital
corporations raise equity capital by
operating at profit issuing stock
right of a share holder to ....
convertible, redemption
document
corporate charter articles of incorporation
Mars
credit common stock
fresh
deb dividends 3,000 cred div payable 3,000 no entry
gosling
deb dividends 6,000
Stockit
no dividends payable
how should cash dividends be reported on the statement of shareholders' equity
reduction of retained earnings
the number of shares issued represents the number of shares
sold
a corporation is owned by its
stockholders
when a company declares and pays a how should end, what are the financial statement effects
stockholders equity decreases
Daffy
-50,000 increase in total stockholders' equity -50,000 increase in total assets
Shareholders' equity consists of which of the following
-amounts invested by shareholders -amounts earned by the corporation
Canton
-common stock will be overstated -additional paid-in capital will be understated
Dilution
-debit
treasure this
95,000....
consistent with IFRS
a liability
how is treasury stock reported in the financial statements?
as a contra equity account
A higher ROE means ____
-company used financial leverage to its stockholder' advantage -stockholders may enjoy higher returns
Justin
-credit to common stock 10,000 -credit to additional paid-in capital 40,000
an accumulated deficit
-indicates accumulated net losses -means that retained earnings has debit balance
investors earn a return on stock investments by
-receiving dividends -selling the stock for more than its cost
Squid
-replaced its 12% debt with 10% debt -generated...
Allison
20,000
Bank Rupp
6,000
Just in Thyme
90,000
cumulative preferred stock is entitles to receive current dividends plus dividends in ____ before any future dividends can be paid
arrears
dividend payment is due when
cash is decreased dividends payable is decreased
journal entry to record reissuing treasury stock at a price below the cost of the treasury stock includes a
deb to cash deb to addition paid-in capital cred to treasury stock
effect of a large stock dividend ...
decrease
declared and paid in the same year
decrease assets decrease stockholders' equity
number of shares outstanding equals the number of shares
issued minus the number of shares in the treasury
green company
remain the same
which type of dividend does not reduce the assets of the firm or create a liability
stock
journal entry to record a large stock dividend includes a
-deb to retained earnings -cred to common stock
equation of declaring a dividend that will be paid at a later date
-decrease in stockholders' equity -increase in liabilities
what are retained earnings
-decreased by dividends -sometimes called capital earning -all of the company's earnings kept rather than distributed -increased by net income
preferred stockholders usually have preference over common stockholders with respect to which items?
-distribution of assets in liquidation -dividends
EPS
-dividing the stock price by the P/E ratio -dividing net income less preferred dividends by the average common shares outstanding
Ima Rich
-financing activities section of the statement of cash flows increases -stockholders' equity on the balance sheet increases
Refurbish
-treasury stock on the balance sheet will equal 4,000 -stockholders' equity on the balance sheet will be 10,000 higher additional paid-in capital will be increased by 2,000 8,000 cred 2,000 cred to addition...
when treasury stock is purchased, the cost of treasury stock is reported as
a reduction in shareholders' equity
shares of stock that are repurchased are referred to as
treasury stock
issuing 1,000 shares of 5%
increasing total stockholders' equity increasing total assets
Dilution
10,000 decrease and increase
farley
-deb retained earnings 45,000 -cred common stock 5,000 -cred additional...
T-balls
-increase in total assets of 10,000 -decrease in additional paid-in capital of 1,000
stock dividends have the following effects on stockholders' equity
-no change in equity -increase common stock -decrease retained earnings
If a company's EPS falls from $5 to $3 then investors may expect
-reduction in future dividends -reduction in the stock price
which of the following dividends has no effect on total owners' equity?
-stock dividend
limited liability
C corporation
increase in EPS
higher profitability
which account is a stockholders' equity account
additional paid-in capital
preferred stock generally ___ voting rights and _____ preference as to dividends
does not have; has