Exam 10: Reporting and Analyzing Stockholders Equity

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 shares were distributed on March 30. The entry to record the transaction of March 30 would include a

A company would not acquire treasury stock

The journal entry to record the purchase of treasury stock will cause total stockholders' equity to decrease by the amount of the cost of the treasury stock.

Which one of the following would not be considered an advantage of the corporate form of organization?

Outstanding stock of the West Corporation included 40,000 shares of $5 par common stock and 10,000 shares of 5%, $10 par non-cumulative preferred stock. In 2016, West declared and paid dividends of $4,000. In 2017, West declared and paid dividends of $20,000. How much of the 2017 dividend was distributed to preferred shareholders?

A stock split will

On January 1, Edmiston Corporation had 2,000,000 shares of $10 par value common stock outstanding. On March 31 the company declared a 10% stock dividend. Market value of the stock was $15/share. As a result of this event,

All of the following statements about preferred stock are true except

Treasury shares plus outstanding shares equal

Paid-in capital in excess of stated value would appear on a balance sheet under the category

Treasury stock is a contra stockholders' equity account.

Two classifications appearing in the paid-in capital section of the balance sheet are

Those most responsible for the major policy decisions of a corporation are the

All of the following are normally found in a corporation's stockholders' equity section except

If Pratt Company issues 5,000 shares of $5 par value common stock for $210,000, the account

Dividends in arrears are liabilities of the corporation.

A corporation is not an entity that is separate and distinct from its owners.

The par value of a stock

The officer that is generally responsible for maintaining the cash position of the corporation is the

A corporation must be incorporated in each state in which it does business.