Exam 10: Reporting and Analyzing Stockholders Equity

The following data is available for BOX Corporation at December 31, 2017: Common stock, par \ 10 (authorized 30,000 shares) \2 70,000 Treasury stock (at cost \ 15 per share) \1 ,200 Based on the data, how many shares of common stock are issued?

The board of directors of Benson Company declared a cash dividend of $1.50 per share on 42,000 shares of common stock on July 15, 2017. The dividend is to be paid on August 15, 2017, to stockholders of record on July 31, 2017. The effects of the journal entry to record the payment of the dividend on August 15, 2017, are to

Under the corporate form of business organization

Placing a restriction on retained earnings will

What is the total stockholders' equity based on the following account balances? Common Stock \ 950,000 Paid-In Capital in Excess of Par 50,000 Retained Earnings 175,000 Treasury Stock 25,000

The Paid-in Capital in Excess of Par Value is increased in the accounting records when

Common Stock Dividends Distributable is classified as a(n)

The declaration and distribution of a stock dividend will

Anders, Inc has 10,000 shares of 5%, €100 par value, cumulative preference shares and 20,000 ordinary shares with a $1 par value outstanding at December 31, 2017. There were no dividends declared in 2015. The board of directors declares and pays a €90,000 dividend in 2016 and in 2017. What is the amount of dividends received by the ordinary shareholders in 2017?

Dividends may be declared and paid in cash or stock.

Retained earnings are occasionally restricted

The board of directors of Benson Company declared a cash dividend of $1.50 per share on 42,000 shares of common stock on July 15, 2017. The dividend is to be paid on August 15, 2017, to stockholders of record on July 31, 2017. The correct entry to be recorded on August 15, 2017, will include a

Dividends in arrears on cumulative preferred stock

If no-par stock is issued without a stated value, then

The return on common stockholders' equity is computed by dividing net income

A liability arises when the board of directors declares a stock dividend.

The effect of a stock dividend is to

Restricted retained earnings are available for preferred stock dividends but unavailable for common stock dividends.

The amount of a cash dividend liability is recorded on the date of record because it is on that date that the persons or entities who will receive the dividend are identified.

The board of directors of Yancey Company declared a cash dividend of $1.50 per share on 42,000 shares of common stock on July 15, 2017. The dividend is to be paid on August 15, 2017, to stockholders of record on July 31, 2017. The effects of the journal entry to record the declaration of the dividend on July 15, 2017, are to