Exam 15: Stockholders Equity

In 2014, Hobbs Corp. acquired 12,000 shares of its own $1 par value common stock at $18 per share. In 2015, Hobbs issued 8,000 of these shares at $25 per share. Hobbs uses the cost method to account for its treasury stock transactions. What accounts and what amounts should Hobbs credit in 2015 to record the issuance of the 6,000 shares?

At the date of declaration of a small common stock dividend, the entry should not include

In the United States, like many other countries, banks are major creditors as well as the largest investors.

Assume common stock is the only class of stock outstanding in the Manley Corporation. Total stockholders' equity divided by the number of common stock shares outstanding is called

The rate of return on common stock equity is computed by dividing net income by the average common stockholders' equity.

The following information pertains to Parsons Co.: InstructionsCompute (assume no changes in balances during the past year): (a) Total amount of stockholders' equity in the balance sheet(b) Earnings per share of common stock(c) Book value per share of common stock(d) Payout ratio of common stock(e) Return on common stock equity

The SEC makes it mandatory for companies to disclose their dividend policy in their annual report.

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 book value per share of common stock at 12/31/15 is calculated as

Luther Inc., has 4,000 shares of 6%, $50 par value, cumulative preferred stock and 100,000 shares of $1 par value common stock outstanding at December 31, 2015, and December 31, 2014. The board of directors declared and paid a $10,000 dividend in 2014. In 2015, $48,000 of dividends are declared and paid. What are the dividends received by the preferred stockholders in 2015?

The stockholders' equity of Howell Company at July 31, 2014 is presented below: On August 1, 2014, the board of directors of Howell declared a 10% stock dividend on common stock, to be distributed on September 15th. The market price of Howell's common stock was $70 on August 1, 2014, and $76 on September 15, 2014. What is the amount of the debit to retained earnings as a result of the declaration and distribution of this stock dividend?

Masterson Company has 420,000 shares of $10 par value common stock outstanding. During the year Masterson declared a 15% stock dividend when the market price of the stock was $36 per share. Three months later Masterson declared a $.60 per share cash dividend. As a result of the dividends declared during the year, retained earnings decreased by

Layne Corporation had the following information in its financial statements for the years ended 2014 and 2015: What is the book value per share for Layne Corporation for the year ended 2015?

Manning Company issued 10,000 shares of its $5 par value common stock having a fair value of $25 per share and 15,000 shares of its $15 par value preferred stock having a fair value of $20 per share for a lump sum of $530,000. How much of the proceeds would be allocated to the common stock?

Which of the following represents the total number of shares that a corporation may issue under the terms of its charter?

On September 1, 2014, Valdez Company reacquired 20,000 shares of its $10 par value common stock for $15 per share. Valdez uses the cost method to account for treasury stock. The journal entry to record the reacquisition of the stock should debit

"Gains" on sales of treasury stock (using the cost method) should be credited to

The rate of return on common stock equity is calculated by dividing

At the date of the financial statements, common stock shares issued would exceed common stock shares outstanding as a result of the

The original sale of the $50 par value common shares of Gray Company was recorded as follows: InstructionsRecord the treasury stock transactions (given below) under the cost method:Transactions: (a) Bought 400 shares of common stock as treasury shares at $62. (b) Sold 120 shares of treasury stock at $60. (c) Sold 60 treasury shares at $68.

Gannon Company acquired 10,000 shares of its own common stock at $20 per share on February 5, 2014, and sold 5,000 of these shares at $27 per share on August 9, 2015. The fair value of Gannon's common stock was $24 per share at December 31, 2014, and $25 per share at December 31, 2015. The cost method is used to record treasury stock transactions. What account(s) should Gannon credit in 2015 to record the sale of 5,000 shares?