Exam 11: Stockholders Equity

Carlton Industries has identified the following items and would like you to answer a few questions about their effect on Stockholders' Equity. Items are used only once. -Which item results in no change to stockholders' equity?

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?

As a result of a stock split,

Several transactions occurred for Shadow Dreams Corporation during 2015. Indicate the effect each item has directly on retained earnings by writing the amount in the space provided. Place a + plus sign in front of the amount if the item increases retained earnings, or parentheses around the amount if the item decreases retained earnings. Place an X in the blank for items that have no direct effect on retained earnings. Items that affect the income statement do not directly affect retained earnings.

Assume the following independent situations: 1. Company A has total stockholders' equity at year­end of $600,000 and has 10,000 shares of stock. 2. Company B has total stockholders' equity at year­end of $600,000 and has 10,000 shares of stock. The company also has 60,000 shares of preferred stock, which has a $1 par value and a liquidation value of $3 per share. Required: Calculate the book value per share for Company A and Company B.

Select the statement on which each of the items provided below would be reported. -Foreign currency translation adjustments.

What is treasury stock? How is it reported on the financial statements?

The Stockholders' Equity section of the balance sheet for High Five Design Company appeared as follows before its recent stock dividend:

If a company issues $5 par value common stock,

An accounting transaction is not recorded when a corporation declares and executes a stock split.

Vegas Finance Company reported the following: Common stock, $10 par, 100,000 shares authorized, 80,000 shares issued and outstanding What is the effect of issuing 1,000 shares of common stock at $15 per share?

Select the letter of the term each statement best describes. -Net income that has been earned by the corporation but not paid out as dividends.

Valor Company issued 5,000 shares of $1 par common stock for $30 per share, providing the company with $150,000 in cash. What effect, in addition to the increase in cash, does this transaction have on the accounting equation for Valor?

A company issued 4,000 shares of $5 par common stock for $30 per share. The company purchased 1,200 shares as treasury stock at $32 per share. Later, the company reissued 400 shares of the treasury stock at $34 per share. Which of the following is true?

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

Which accounts are used by a sole proprietorship that are not used by a corporation?

Select the letter of the term each statement best describes. -Stock that has a provision allowing the stockholders to share in the distribution of an abnormally large dividend on a percentage basis.

The statement of stockholders' equity

From the following list, identify each item as operating O, investing I, financing F, or not separately reported on the statement of cash flows N. -Payment of cash dividend on preferred stock

Select the best answer from the list below to complete statements 1-11 that follow. -The annual dividend amount divided by the annual net income is .