Exam 11: Stockholders Equity

Match the terms to the definitions by selecting the letter of the term.Each term may be used more than once or not at all. -Allows preferred stock to be returned to the corporation in exchange for common stock.

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

Select the letter of the term each statement best describes. -An arbitrary amount stated on the face of the stock certificate that represents the legal capital of the firm.

With respect to the statement of cash flows,

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). -Conversion of preferred stock into common stock

Abilene Western Shop began business on January 1, 2016.The corporate charter authorized issuance of 10,000 shares of $2 par value common stock and 4,000 shares of $8 par value, 6% cumulative preferred stock.Abilene issued 2,400 shares of common stock for cash at $20 per share on January 2, 2016.What effect does the entry to record the issuance of stock have on total stockholders' equity?

Dark Corp.began operations on March 1, 2016.The corporate charter authorized issuance of 3,000 shares of $2 par value common stock.Dark sold all of the stock on March 1.On May 1, Dark repurchased 2,000 of the outstanding shares.On May 14, Dark sold 1,200 of the treasury shares.On June 1, Dark declared a 2-for-1 stock split.As a result of the split, what occurred?

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

Select the letter of the term each statement best describes. -Creation of additional shares of stock with a concurrent reduction of the par value of the stock.

When stock is issued for a noncash asset, the par value of the stock is the best indicator of the value of the asset.

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

Carlton Industries has identified the following items and would like you to answer a few questions about their effect on Stockholders' Equity. -Which item increases Additional Paid-In Capital - Treasury Stock?

The number of shares sold or distributed to stockholder are ____________________________.

With regard to a corporation's stock, par value is

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 Paid-In Capital-Treasury Stock account or the Retained Earnings account (if the Additional Paid-In Capital-Treasury Stock account does not exist).

The number of shares issued less the number of shares held as treasury stock are ______________________________.

Stock issued by the firm, but then repurchased and not retired is ________________________.

The Stockholders' Equity section of the balance sheet of Sea Turtle Company reveals the following information: Common stock, \ 3 par value \ 150,000 Additional paid-in capital-common 850,000 ? There have been two issues of stock since the corporation began business.The average issue price per share of stock was

Montana City Company began business on January 1, 2016.The corporate charter authorized issuance of 500 shares of $1 par value common stock and 400 shares of $4 par value, 3% cumulative preferred stock.What is the maximum amount that can be reported on the balance sheet for Common Stock and Preferred Stock, respectively, if all of the stock is issued? ​ Common Stock Preferred Stock a. \ 500 \ 1,600 b. \ 5,000 \ 120 c. \ 500 \ 120 d. Not enough information provided.

All issued stock is outstanding.