Exam 13: Equities

Key Corp has a October 31 year end.On October 2,2011,the board of directors decided a cash dividend of $1.50 per common share,payable on November 24,2012.The date of record for this dividend is November 17,and the ex-dividend date is November 15,2012.Additional information relating to the shares follows: Requirements: a.Determine the dollar amount of dividends to be paid as a result of the dividend declaration on October 2,2011. b.Record all the journal entries related to this dividend in 2011 and 2012.

Which statement is correct about "par value"?

What is the meaning of "contributed capital"?

Here is an extract of a trial balance for Masters Ltd.Indicate which are "non-contributed capital."

Explain the meaning of "par value," "contributed surplus," and "preferred shares."

Which statement is correct?

If 10,000 shares with par value of $15/share are issued for $20/share,how much will be presented as "contributed capital" for financial statement purposes?

Here is an extract of a trial balance for Masterious Ltd.Indicate which are examples of transactions with non-owners.

Assume that a company issued 10,000 shares for $30 and a par value of $1/share.What entry would be required to record the repurchase and cancellation of 1,000 shares at $28/share?

Here is an extract of a trial balance for Lipika Inc.Indicate which accounts would be reported under the "retained earnings" section of the balance sheet.

Assume that a company issued 10,000 shares for $30/share.What entry would be required to record the repurchase and cancellation of 1,000 shares at $28/share?

What is a "stock split"?

Which statement about a "reverse stock split" is correct?

In which account would "transactions with non-owners" be reported?

If 1,000 shares with a par value of $50/share,a dividend rate of 10% and redeemable for $80/share,are sold for $75/share how much dividend will the equity holders be entitled to?

What kind of transaction is "appropriated reserves"?

Which statement about a "treasury shares" is correct?

Elville Inc.was incorporated under provincial legislation with a December 31 year-end.The company has a single class of shares.As at December 31,2011,it had 900,000 shares issued and outstanding.These shares had a book value of $18,000,000 on the balance sheet. During 2012,Elville repurchased 10% of the issued shares from one of the minority shareholders at a cost of $25 per share.The company held these in treasury and later found a buyer for half of these shares at $30.The other half were sold at $21 to another investor. Requirement: Record the share transactions using the single-transaction method for treasury stock,which is the preferred accounting method.

Assume that a company issued 10,000 shares for $30 and a par value of $2/share.What entry would be required to record the repurchase and cancellation of 1,000 shares at $28/share?

As of January I,2014,the equity section of LD Food Co.'s balance sheet contained the following: • On November 1,2014,the company declared and paid the annual cash dividends on the preferred shares.On the same day,the company issued a 5% stock dividend on common shares.LD Food's stock traded at $7/share after the dividend. Requirement: Record the journal entries for the above transactions occurring in 2014.