Exam 14: Corporations: Dividends, Retained Earnings, and Income Reporting

Agler, Inc. has 10,000 shares of 7%, $100 par value, cumulative preferred stock and 100,000 shares of $1 par value common stock outstanding at December 31, 2010. If the board of directors declares a $60,000 dividend, the

Norton, Inc. has 10,000 shares of 6%, $100 par value, noncumulative preferred stock and 100,000 shares of $1 par value common stock outstanding at December 31, 2010, and December 31, 2011. The board of directors declared and paid a $50,000 dividend in 2010. In 2011, $110,000 of dividends are declared and paid. What are the dividends received by the preferred and common shareholders in 2011?

Common Stock Dividends Distributable is classified as a(n)

Harris Corporation had net income of $230,000 and paid dividends of $50,000 to common stockholders and $20,000 to preferred stockholders in 2010. Harris Corporation's common stockholders' equity at the beginning and end of 2010 was $870,000 and $1,130,000, respectively. There are 100,000 weighted-average shares of common stock outstanding. Harris Corporation's return on common stockholders' equity was

A stockholder who receives a stock dividend would

The following information is available for Wenger Corporation: Instructions Based on the preceding information, calculate return on common stockholders' equity.

Earnings per share is calculated by dividing net income by the weighted average number of shares of preferred stock and common stock outstanding.

On January 1, 2010, Penton Corporation had $2,000,000 of $10 par value common stock outstanding that was issued at par and retained earnings of $1,000,000. The company issued 200,000 shares of common stock at $12 per share on July 1. On December 15, the board of directors declared a 15% stock dividend to stockholders of record on December 31, 2010, payable on January 15, 2011. The market value of Penton Corporation stock was $15 per share on December 15 and $16 per share on December 31. Net income for 2010 was $500,000. Instructions (1) Journalize the issuance of stock on July 1 and the declaration of the stock dividend on December 15. (2) Prepare the stockholders' equity section of the balance sheet for Penton Corporation at December 31, 2010.

A corporation differs from a proprietorship and a partnership in that

If the board of directors authorizes a $100,000 restriction of retained earnings for a future plant expansion, the effect of this action is to

The following information is available for Santo Corporation for the year ended December 31, 2010: Instructions Prepare a corporate income statement in good form.

A detailed stockholders' equity section in the balance sheet will list the names of individuals who are eligible to receive dividends on the date of record.

Shannon Manufacturing declared a 10% stock dividend when it had 250,000 shares of $3 par value common stock outstanding. The market price per common share was $12 per share when the dividend was declared. The entry to record this dividend declaration includes a credit to

A debit balance in the Retained Earnings account is identified as a deficit.

The correction of an error in previously issued financial statements is known as a _________________.

The following information is available for Queen Corporation for the year ended December 31, 2010: Sales $800,000; Other revenues and gains $72,000; Operating expenses $110,000; Cost of goods sold $520,000; Other expenses and losses $32,000; Preferred stock dividends $30,000. The company's tax rate was 20%, and it had 40,000 shares outstanding during the entire year. Instructions (a) Prepare a corporate income statement. (b) Calculate earnings per share.

Anders, Inc., has 5,000 shares of 5%, $100 par value, cumulative preferred stock and 20,000 shares of $1 par value common stock outstanding at December 31, 2011. There were no dividends declared in 2009. The board of directors declares and pays a $45,000 dividend in 2010 and in 2011. What is the amount of dividends received by the common stockholders in 2011?

The board of directors must assign a per share value to a stock dividend declared that is

Prior period adjustments to income are reported in the current year's income statement.

On October 10, the board of directors of Pitcher Corporation declared a 10% stock dividend. On October 10, the company had 10,000 shares of $1 par common stock issued and outstanding with a market price of $15 per share. The stock dividend will be distributed on October 31 to shareholders of record on October 25. Journalize the entries needed for the declaration and distribution of the stock dividend.