financial accounting tophat chp 13
ABC Company files Articles of Incorporation on 1/1/19 and 1,000 shares are authorized. ABC issues 700 shares on 2/1/19 but decides to buy back 200 shares of treasury stock on 6/1/19. On 7/1/19 ABC decides to declare a dividend of $2 per share for all stockholders of record on 8/1/19 to be paid 9/30/19. How much is the dividend payable?
$1,000
Cainas Cookies had the following information reported for 2019: Revenues $100,000 Expenses $40,000 Preferred Dividends $10,000 Common Dividends $20,000 Preferred shares outstanding - 10,000 shares , $100 par value Common shares outstanding - 50,000 shares, $1 par value EPS is:
$1.00 per share
Buddy Brews issues 1,000 shares of $1 par value common stock for $5,000, and 1000 shares of $200, 5% preferred stock for $25,000 on 4/1/19. What is the dividend that will be paid to the preferred stockholders each time a dividend is declared?
$10,000
ABC Company issued 1,000 shares of $100, 5% preferred stock, par value $100 for $300,000. How much will the company record to its preferred stock account?
$100,000
ABC Company issued 1,000 shares of $100 par value, 5% preferred stock, for $300,000 on 1/1/19, and 10,000 shares of Common stock, $1 par value for $30,000. On 6/30/19, the company declared a cash dividend of $12,000. What amount of the dividend will be paid to preferred stockholders?
$5,000
Treasury stock is:
A contra equity account
When treasury stock is purchased with cash, what is the impact on the balance sheet equation?
Assets decrease and stockholder's equity decreases
Cainas Cookies declares a $10,000 on 10/1/19 for all shareholders of record on 10/31/19, to be paid on 12/31/19. The journal entry required on 10/1 is:
Debit: Retained earnings (Dividends) and Credit: Dividends Payable
Cainas Cookies issued 1,000 shares, $1 par value common stock for $5,000 on 1/1/17, and then repurchased 200 shares on 6/30/17 for $8.00 per share. On 10/1/17, the company declared a $3.00 cash dividend for all shareholders of record on 11/30/17 to be paid on 12/31. What journal entry is required on 6/30/17?
Debit: Treasury Stock $1600 and Credit: Cash $1600
A small stock dividend:
Has no net effect on stockholder's equity
Declaring a small stock dividend:
It has no effect on stockholders equity