Exam 11: Stockholders Equity

On December 31, 2015, Aire Dyne, Inc. reported common stock of $120,000, retained earnings of $60,000, and total stockholders' equity equal to $500,000. No unusual accounts appeared in the stockholders' equity section of its balance sheet. During the fiscal year ended December 31, 2016, 10,000 shares of stock were sold for $40,000, of which $10,000 represented additional paid-in capital. The company reported net income of $85,000 and declared and paid dividends of $50,000. A What is the par value of the stock? B What is the amount of the retained earnings at December 31, 2016? C Prepare a statement of retained earnings for Aire Dyne, Inc. for the year ended December 31, 2016, in good form.

Refer to the information about Anole Company. The number of Anole's unissued shares of common stock at December 31, 2015, is

A company purchased machinery by issuing 2,000 shares of $3 par value common stock. Since the company is new, there is no established market price for its stock. How would the company record the transaction?

At December 31, 2015, Marley Company has the following: Common Stock, $10 par, 10,000 shares authorized, 9,000 issued, 8,000 outstanding REQUIRED: Indicate whether the following would increase, decrease, or have no effect on a assets, b retained earnings, and c total stockholders' equity. 1. A company declares and pays a cash dividend of $25,000. 2. A company declares and issues a 10% stock dividend.

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

Assume that on December 31, 2016, Potaw Company has outstanding 8,000 shares of $15 par, 6% cumulative, preferred stock and 40,000 shares of $5 par common stock. Potaw was unable to declare a dividend in 2014 or 2015 but wants to declare a $75,000 dividend for 2016. REQUIRED: 1. How much cash is distributed to preferred stockholders? 2. How much cash is distributed to common stockholders? 3. What is the dividend per share to preferred stock? 4. What is the dividend per share to common stock?

If a company has both common and preferred shares outstanding and wishes to calculate book value per share,

Which of the following statements regarding partnerships is true?

Assume that Wei Company's Stockholders' Equity category of the balance sheet appears as follows as of January 1, 2015: Assume that Wei's common stock is selling at $35 per share on that date. REQUIRED: 1. Assume that on January 2, 2015, Wei declares a 10% stock dividend to common stockholders to be distributed on April 1, 2015. Identify the accounting equation effects of the transaction on Wei's books. 2. Instead of 1 above, assume that on January 2, 2015, Wei declares a 100% stock dividend to be distributed on April 1, 2015. Identify the accounting equation effects of the transaction on Wei's books. 3. What are the accounting equation effects on Wei's books when the stock in 2 above, is actually distributed?

When treasury stock is resold for an amount less than its cost, the difference between the sales price and the cost is deducted from the Additional Paid­In Capital-Treasury Stock account or the Retained Earnings account if the Additional Paid­In Capital-Treasury Stock account does not exist.

Roehr Corporation issues 20,000 shares of $0.50 par common stock for $6 per share; the Additional Paid-in Capital--Common account will increase by

On March 31, 2015, Outdoor Closets, Inc. had common stock of $230,000, retained earnings of $65,000, and additional paid-in capital--common of $540,000. During the fiscal year ended March 31, 2016, 500 shares of stock were sold for $60,000, of which $40,000 represented additional paid-in capital. The company reported net income of $140,000 and declared and paid dividends of $80,000. In good form, prepare the financial statement that shows all of the changes in the stockholders' equity accounts.

When a company declares a stock dividend, which of the following occurs?

Refer to the information about Anole Company. Anole's total stockholders' equity reported on the balance sheet at December 31, 2015, is

Which of the following statements regarding partnerships is true?

Select the best answer from the list below to complete statements 1-11 that follow. -The number of shares sold or distributed to stockholder are .

The issuance of stock is reported as a financing activity.

A stock split is similar to a stock dividend in that it results in additional shares of stock outstanding and is nontaxable.

Contrast stock dividends and stock splits.

The book value per share for a corporation is