Exam 15: Accounting for Stockholders Equity

Dante, Inc. reacquired 30,000 shares of its $1 par common stock for $19 per share on January 31. On March 1 they sold 7,000 treasury shares for $29 per share. On April 1 they sold 6,000 treasury shares for $16 per share. What is the necessary journal entry for April 1?

Illusions, Inc. reacquired 26,000 shares of its common stock for $16 per share on June 1. On July 1 they sold 7,000 treasury shares for $23 per share. On August 1 they sold 9,000 treasury shares for $13 per share. Assuming no prior balance in the Additional Paid-in Capital from Treasury Stock Transactions account, what is the ending balance in this account following these transactions?

Which of the following is not a part of Other Comprehensive Income?

Convertible preferred shares are often accounted for as a liability under both GAAP and IFRS.

TNT Corporation is authorized to issue 75,000 shares of $1 par value common stock. Prepare the journal entries for the following transactions (omit explanations): a. Issued 50,000 shares at $25 per share. b. Issued 500 shares in exchange for consulting services; the estimated fair value is $20 per share. c. Issued 7,000 shares at $30 per share, paying an underwriter $800 in stock issuance costs.

S & C Company issues 2,400 shares of common stock with a $6 par value. The issue price of the stock is $14 per share, and the company paid an underwriter $800 in stock issue costs. What is the journal entry required to record the issuance of the shares?

Omega Company has issued both common and preferred stock. The preferred stock is convertible into common stock. The following information is provided for Omega Company's Stockholders' equity: Convertible Preferred Stock, \ 30 par, 25,000 shares issued and outstanding \ 750,000 Additional Paid-in Capital in Excess of Par-Preferred 150,000 Common Stock, \ 2 par, 125,000 shares issued and putstanding 250,000 Additional Paid-in Capital in Excess of Par-Common 3,125,000 Retained Earnings 1,600,000 What is the necessary journal entry if 5,000 shares of preferred are converted under each independent scenario: a. Each share of convertible stock is convertible into 1.5 shares of common stock. b. Each share of convertible stock is convertible into 4 shares of common stock.

Dante, Inc. reacquired 57,000 shares of its $1 par common stock for $19 per share on January 31. On March 1 they sold 9,000 treasury shares for $28 per share. On April 1 they sold 5,000 treasury shares for $15 per share. What is the necessary journal entry for March 1?

Archer, Inc. declared a stock dividend of 100,000 shares. Prior to the declaration, the company has 450,000 shares, $1 par value common stock issued and outstanding. At the date of the declaration, the company's common stock was selling for $15 per share. Prepare the required journal entries to account for the declaration as if the 100,000 shares were considered: a. a small stock dividend b. a large stock dividend

The Magic Flute Company provides the following information from the Stockholders' Equity section of the balance sheet: Common Stock, \ 1 par value, 200,000 shares issued and putstanding \ 200,000 Additional Paid-in Capital in Excess of Par-Common 1,400,000 Retained Earnings 1,520,000 Total Stockholders' Equity \ 3,120,000 Magic Flute had the following transactions related to treasury shares: January 1 Acquired 30,000 shares of its common stock in the open market for $12 per share March 1 Sold 5,000 treasury shares for $16 April 1 Sold 5,000 treasury shares for $6 May 1 Retired 5,000 treasury shares Prepare the necessary journal entries to record all treasury stock transactions.

Woods, Inc. issued 150 shares of its $8 par value common stock for $19 per share. They will record ________ in the common stock account at par value and ________ as additional paid-in capital in excess of par-common.

________ represents the amounts that common and preferred shareholders contribute in excess of the stated or par value.

Which of the following is not a type of dividend?

A firm is under no legal obligation to distribute a ________ dividend, even after declaring one.

________ are shares for which the issuing entity has the right to "buy back" the shares at a specified price and future date.

Caesar Cruise Lines, Inc. issues 6,000 shares of common stock with a $1 par value. The issue price of the stock is $20 per share. What is the journal entry required to record the issuance of the shares?

Mozart & Company paid cash dividends totaling $160,000 in 2016 and $85,000 in 2017. In 2018, the company will pay cash dividends of $800,000. There were no dividends in arrears as of January 1, 2016. There are 25,000 shares of common stock outstanding and 100,000 shares of 6 percent, $50 par cumulative preferred stock outstanding. What is the amount of cash dividends payable to common stockholders in 2018?

________ are paid from contributed capital instead of retained earnings.

IFRS requires a company to disclose information that enables users to assess its objectives, policies, and processes for managing capital.

Bitters Co.'s net income is $14,000, the market value of common stock is $160,000, and the book value of common stockholders' equity is $100,000. What is the Price to Book Ratio for Bitters Co.? (Round your answer to two decimal places, X.XX.)