Exam 11: Stockholders Equity

What is the effect of a stock dividend on stockholders' equity?

Select the best answer from the list below to complete statements 1-11 that follow. -The selling price of the stock as indicated by the most recent stock transaction is ___________________________________.

Sunnyland Charters reported the following information at December 31, 2015: The number of shares of common stock issued is

Overton Supply reported the following information at December 31, 2015: Answer the following questions for Overton Supply. 1 Assuming that all shares were sold at the same price, how much did each share of common stock originally sell for? 2 What is the total amount of contributed capital at December 31, 2015? 3 What is the amount of the book value per share at December 31, 2015? 4 Would the book value per share increase, decrease, or remain the same, if the company declared a 2-for-1 stock split on December 31, 2015? Explain.

Reddy Parts reported the following information at December 31, 2015: Answer the following questions for Reddy Parts by placing the correct response in the space provided. ___________ A How many shares of common stock are issued? ___________ B How many shares of preferred stock are issued? ___________ C How many common shares are outstanding? ___________ D How many preferred shares are outstanding ? ___________ E How many of the common shares will receive dividends if an when they are paid? ___________ F How many of the preferred shares will receive dividends if and when they are paid?

The cumulative feature of stock allows the firm to eliminate a class of stock by paying the stockholders a specified amount.

Gordon Vending, a sole proprietorship, had the following balances and transactions during 2015: beginning capital, $40,000; contribution of cash to the business by the owner, $15,000; revenue, $60,000; expenses, $35,000; withdrawal by the owner, $5,000. What is the amount of the ending capital balance?

Use the incomplete stockholders' equity section of Vargas Company's balance sheet as of December 31, 2015, to answer the following question.

On May 1, 2015, Xiu Inc. had common stock of $345,000, additional paid-in capital of $1,298,000, and retained earnings of $3,013,000. Xiu did not purchase or sell any common stock during the year. The company reported net income of $556,000 and declared dividends in the amount of $78,000 during the year ended April 30, 2016. REQUIRED: Prepare a financial statement that explains the differences between the beginning and ending balances for the accounts in the Stockholders' Equity category of the balance sheet.

Treasury stock is reported as a reduction in stockholders' equity.

The following stockholders' equity section of Petal Pusher Company's balance sheet appeared at December 31, 2015. Answer the following: A Has the company been profitable since its inception? How do you know? B What does the balance in retained earnings represent?

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. -Issuance of common stock for equipment

Select the statement on which each of the items provided below would be reported. -Net income for the period.

Arco Corporation declared a cash dividend on June 2 of $6 per common share. The company has 2,000 shares of common stock authorized, 1,000 shares issued, and 200 in the treasury. This transaction to record the declaration of the cash dividend increases

Comprehensive income is

Book value is a measure of the market value of the stock.

Contrast the two parts 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. -Repurchase of common stock as treasury stock

Big Surf Shop provided the following information from its 2015 financial statements: A Calculate the book value per common share at year-end. B Indicate the usefulness of this ratio for Big Surf Shop.

When stock is issued for cash, only the par value of the stock should be reported in the stock account.