Exam 15: Stockholders Equity

The IFRS statement of recognized income and expenses is identical to the U.S. GAAP statement of retained earnings - beginning balance retained earnings, plus net income, less dividends, equals ending balance retained earnings.

Treasury stock is a company's own stock that has been reacquired and retired.

Under IFRS compliance requirements the Revaluation Surplus is

An entry is not made on the

Rensing, Inc., has $800,000 of 5% preferred stock and $1,200,000 of common stock outstanding, each having a par value of $10 per share. No dividends have been paid or declared during 2013 and 2014. As of December 31, 2015, it is desired to distribute $340,000 in dividends. InstructionsHow much will the preferred and common stockholders receive under each of the following assumptions: (a) The preferred is noncumulative and nonparticipating. (b) The preferred is cumulative and nonparticipating. (c) The preferred is cumulative and fully participating.(d) The preferred is cumulative and participating to 9% total.

Hernandez Company has 560,000 shares of $10 par value common stock outstanding. During the year, Hernandez declared a 10% stock dividend when the market price of the stock was $30 per share. Four months later Hernandez declared a $.50 per share cash dividend. As a result of the dividends declared during the year, retained earnings decreased by

The following data are provided: Additional information:On May 1, 2015, 5,000 shares of common stock were issued. The preferred dividends were not declared during 2015. The market price of the common stock was $50 at December 31, 2015.The rate of return on common stock equity for 2015 is calculated as

In each of the following independent cases, it is assumed that the corporation has $800,000 of 6% preferred stock and $3,200,000 of common stock outstanding, each having a par value of $10. No dividends have been declared for 2013 and 2014.(a) As of 12/31/15, it is desired to distribute $250,000 in dividends. How much will the preferred stockholders receive if their stock is cumulative and nonparticipating?(b) As of 12/31/15, it is desired to distribute $800,000 in dividends. How much will the preferred stockholders receive if their stock is cumulative and participating up to 11% in total?(c) On 12/31/15, the preferred stockholders received a $240,000 dividend on their stock which is cumulative and fully participating. How much money was distributed in total for dividends during 2015?

The balance in Common Stock Dividend Distributable should be reported as a(n)

Common stock is the residual corporate interest that bears the ultimate risks of loss.

At the beginning of 2015, Hamilton Company had retained earnings of $250,000. During the year Hamilton reported net income of $75,000, sold treasury stock at a "gain" of $27,000, declared a cash dividend of $45,000, and declared and issued a small stock dividend of 1,500 shares ($10 par value) when the fair value of the stock was $30 per share. The amount of retained earnings available for dividends at the end of 2015 was:

A corporation is incorporated in only one state regardless of the number of states in which it operates.

Yoder, Inc. has 150,000 shares of $10 par value common stock and 75,000 shares of $10 par value, 6%, cumulative, participating preferred stock outstanding. Dividends on the preferred stock are one year in arrears. Assuming that Yoder wishes to distribute $405,000 as dividends, the common stockholders will receive

On May 1, 2014, Ziek Corp. declared and issued a 10% common stock dividend. Prior to this dividend, Ziek had 200,000 shares of $1 par value common stock issued and outstanding. The fair value of Ziek 's common stock was $20 per share on May 1, 2014. As a result of this stock dividend, Ziek's total stockholders' equity

Dividends payable in assets of the corporation other than cash are called property dividends or dividends in kind.

Use the following information for questions 71 and 72. Presented below is information related to Hale Corporation: -The total stockholders' equity of Hale Corporation is

Dividends are not paid on

Common stockholders of a business enterprise are said to be the residual owners. The term residual owner means that shareholders

Gibbs Corporation owned 20,000 shares of Oliver Corporation's $5 par value common stock. These shares were purchased in 2011 for $180,000. On September 15, 2015, Gibbs declared a property dividend of one share of Oliver for every ten shares of Gibbs held by a stockholder. On that date, when the market price of Oliver was $28 per share, there were 180,000 shares of Gibbs outstanding. What NET reduction in retained earnings would result from this property dividend?

Stock that has a fixed per-share amount printed on each stock certificate is called