Exam 11: Stockholders Equity

Which of the following combinations appropriately reflects the type of accounts represented by the Treasury Stock account and Additional Paid­in Capital-Treasury Stock account?

As a result of a stock split,

MacArthur Company began operations on March 1, 2015.The corporate charter authorized issuance of 3,000 shares of $2 par value common stock.MacArthur sold all of the stock on March 1.On May 1, MacArthur repurchased 2,000 of the outstanding shares.On May 14, MacArthur sold 1,200 of the treasury shares.On June 1, MacArthur declared a 2-for-1 stock split.As a result of the split, what occurred?

Tropical Co.declared a cash dividend of $30,000.The entry includes an)

The issuance of stock is reported as a financing activity.

A 15% stock dividend will increase the number of shares outstanding but the book value per share will decrease.

If a company issues $5 par value common stock,

The participating feature of stock allows stockholders to sell stock back to the company.

Select the best answer from the list below to complete statements that follow. -Distribution of additional shares of stock and reduction of the par value of the stock is ______________________________.

Readers of the financial pages of the daily newspaper noticed the following information with regard to the Connor Company stock: Daily high, 45.50; Daily low, 42.25; Last, 43.50; Change, +0.75.This tells readers that the

When a company declares a 3-for-1 stock split, the number of outstanding shares

The Stockholders' Equity section of Taco Reef, Inc.'s balance sheet on January 1, 2015, appeared as follows: On March 1, 2015, Taco Reef reacquired 4,000 shares of common stock at $50 per share.All common shares were originally sold for $42 each.How much should be reported in the treasury stock account on the March 31, 2015 balance sheet?

Book value indicates the rights that stockholders have, based on recorded values, to the net assets in the event of liquidation.

The all-inclusive income approach requires that all events and transactions that affect income should be reported on the income statement to help prevent the manipulation of income.

The book value per share for a corporation is

Which of the following is an account in stockholders' equity?

Select the best answer from the list below to complete statements that follow. -The amount received for each share of stock in excess of par value is .

Fashion Company reported the following: Common stock, $3 par, 10,000 shares authorized, 5,000 shares issued and outstanding What is the effect of a 10% stock dividend if the market price of the common stock is $30 per share when the dividend is declared?

Treasury stock is stock that has been issued, but not currently outstanding.

The stockholders' equity section of Twilight Time's balance sheet on January 1, 2015, appeared as follows: On March 1, 2015, Twilight reacquired 800 shares of common stock at $10 per share.Twilight sold 400 of the treasury shares on November 15 for $12 per share.The entry to record the sale on November 15 would show: