Exam 10: Reporting and Analyzing Stockholders Equity

Johnson Company issued 900 shares of no-par common stock for $17,100. Which of the following journal entries would be made if the stock has no stated value?

Which of the following statements about dividends is not accurate?

On January 1, Swanson Corporation had 80,000 ordinary shares with a €10 par value outstanding. On March 17, the company declared a 15% share dividend to shareholders of record on March 20. Market value of the shares was €13 on March 17. The entry to record the transaction of March 17 would include a

If a corporation pays taxes on its income, then stockholders will not have to pay taxes on the dividends received from that corporation.

All of the following statements regarding retained earnings are true except

A stock split results in a transfer at market value from retained earnings to paid-in capital.

La Vida Corporation issued 24,000 shares of no-par value ordinary shares for €29.50 per share. Which of the following statements is true?

When stock is issued in exchange for a noncash asset, the value recorded for the shares issued is best determined by

Logan Corporation issues 40,000 shares of $50 par value preferred stock for cash at $60 per share. In the stockholders' equity section, the effects of the transaction above will be reported

If an investment firm underwrites a stock issue, the

Which of the following show the proper effect of a stock split and a stock dividend?

In published annual reports

The date on which a cash dividend becomes a binding legal obligation is on the

Herman Corporation had net income of $100,000 and paid dividends of $25,000 to common stockholders and $20,000 to preferred stockholders in 2017. Herman Corporation's common stockholders' equity at the beginning and end of 2017s was $450,000 and $550,000, respectively. Herman Corporation's return on common stockholders' equity is

In the stockholders' equity section of the balance sheet

Preferred stockholders generally do not have the right to vote for the board of directors.

Retro Company is authorized to issue 10,000 shares of 8%, $100 par value preferred stock and 500,000 shares of no-par common stock with a stated value of $1 per share. If Retro issues 10,000 shares of common stock to pay its recent attorney's bill of $50,000 for legal services on a land access dispute, which of the following would be the best journal entry for Retro to record?

Which of the following would not affect the balance of the Retained Earnings account?

Nance Corporation's December 31, 2017 balance sheet showed the following: 6\% preferred stock, \ 20 par value, cumulative, 30,000 shares authorized; 20,000 shares issued \4 00,000 Common stock, \ 10 parvalue, 3,000,000 shares authorized; 1,950,000 shares issued, 1,920,000 shares outstanding 19,500,000 Paid-in capital in excess of parvalue - preferred stock 60,000 Paid-in capital in excess of parvalue - common stock 28,000,000 Retained earnings 9,650,000 Treasury stock (30,000 shares) 630,000 Nance declared and paid a $85,000 cash dividend on December 15, 2017. If the company's dividends in arrears prior to that date were $24,000, Nance's common stockholders received

CAB Inc. has 1,000 shares of 5%, $100 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2017. What is the annual dividend on the preferred stock?