Exam 10: Stockholders Apos Equity

Match the following terms to their correct definition. -Document that authorizes the creation of the corporation, setting forth its name and purpose and the names of the incorporators.

If the stated cash dividend on cumulative preferred stock has been unpaid for a period of one year or more, it is referred to as a dividend ____________________.

Match the following terms to their correct definition. -Date on which shareholders receive dividends that have been declared.

What will be the increase in the Paid-in capital in excess of par account if a corporation issues 20,000 shares of $1.00 par common stock for $6 per share? a.$140,000 b.$120,000 c.$100,000 d.$20,000

Labor Finders, Inc. Selected data from the company's financial statements are presented below: -Refer to Labor Finders, Inc. The company's 2020 return on common equity is reported as

Common stock usually has all of the following features except

A corporation began operations on October 1, 2019, with 3,000 shares of $2 par common stock authorized. The company issued common stock on several occasions during 2019 and 2020. On December 31, 2020, the company repurchased 1,000 shares of its outstanding shares and then reissued 500 of these shares on March 1, 2021. On June 1, 2021, the company's board of directors declared a 2-for-1 stock split. As a result of this stock split, which of the following is true?

If a corporation declares a 2-for-1 stock split, which of the following is true?

A corporation has 10,000 shares of $5 par common stock authorized but only 8,000 shares issued and outstanding. In the space provided, indicate the effect of the following dividend transactions (shown in chronological order) on each account listed by writing the amount and whether the account would be debited or credited. For any instances where there is no effect on the account, place N/A in the space.

When a corporation decides whether to pay a cash dividend, which of the following is an important consideration?

Accumulated other comprehensive income is NOT considered to be a source of stockholders' equity.

On March 31, 2019, Legends Entertainment, Inc. had common stock of $230,000, paid-in capital in excess of par of $540,000, and retained earnings of $65,000. During the following year, 500 shares of stock were sold for $60,000, of which $40,000 represented paid-in capital in excess of par. The company reported net income of $140,000 for the year ended March 31, 2020. Also during the year, $80,000 of dividends were declared and paid. ​ Prepare the Statement of Stockholders' Equity at March 31, 2020.

Treasury shares represent the

When a corporation issued stock to stockholders, explain the use of the account for paid-in capital in excess of par value.

When a corporation is in the process of being dissolved, any additional dividends are referred to as ____________________ dividends.

The stockholders' equity accounts at December 31 are provided below: The market price of the stock was $8 per share at December 31. A)What journal entry will be required to record the distribution of a 20% stock dividend on December 31? B)What balance will be in the retained earnings account immediately following the stock dividend? C)Prepare the stockholders' equity section of the balance sheet.

If a corporation repurchases 500 shares of its previously-issued common stock then retires these shares, which of the following is true?

The stockholders' equity section of the balance sheet at January 1, 2019, appeared as follows: On March 1, 2019, the company sold 800 shares of treasury stock at $25 per share. A)Prepare the journal entry to record the March 1 transaction. B)Is the excess sale price over the cost of the treasury stock reported on the income statement? Why or why not?

La Paz Restaurants Selected data from the company's financial statements are presented below: -Refer to the information presented above for La Paz Restaurants. The 2020 dividend yield ratio is reported as

Capitalization of retained earnings occurs when a corporation's stock is split.