Exam 11: Stockholders Equity

Assuming no preferred stock exists, total stockholders' equity divided by the number of shares of common stock outstanding is equal to ________________________________________.

Mendes Charters reported the following information at December 31, 2016: Preferred stock, $\$ 100$ par, 500 shares authorized, and outstanding; cumulative; nonparticipating; callable at par value \ 0,000 Common stock, \ 12 par, 50,000 shares authorized and outstanding 600,000 Additional paid-in capital-Common 25,000 Retained earnings 825,000 Mendes' total contributed capital is

Which of the following is true?

With regard to preferred stock,

The balance of the $0.50 par value Common Stock account for Murdock Company was $60,000 before its recent 3-for-1 stock split.The market price of the stock was $30 per share before the stock split.What occurred as a result of the stock split?

When a company purchases treasury stock, which of the following statements is true?

Book value indicates the rights that stockholders have, based on recorded values, to the net assets in the event of liquidation.

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

Cloud Co.provided the following information from its 2016 financial statements: ​ Total Assets \ 655,000 Total Liabilities 225,000 In addition, the stockholders' equity section of the balance sheet showed: Preferred stock, $10 \%, \$ 2$ par value, 10,000 authorized, 8,000 issued and outstanding, $\$ 5$ liquidation value $\quad \$ 16,000$ Common stock, $4 par value, 20,000 shares authorized, 10,000 issued and outstanding $\quad 40,000$ The common stock had a year-end market price of $\$ 24$ . A) Calculate the book value per common share at year-end. B) Indicate the usefulness of this ratio for Cloud Co.. ​

When a company declares a 2-for-1 stock split,

The selling price of the stock as indicated by the most recent stock transaction is ___________________________________.

The Retained Earnings account balance for a large corporation is $10,000,000.This amount represents

The Stockholders' Equity section of Deer Lakes Manor's balance sheet on January 1, 2016, appeared as follows: Common stock, \ 30 par, 20,000 shares issued and outstanding \ 600,000 Additional paid-in capital-Common 240,000 Retained earnings 700,000 Total stockholders' equity \ 1.540,000 On March 1, 2016, Deer Lakes reacquired 4,000 shares of common stock at $50 per share.All common shares were originally sold for $42 each.How much should be reported in the treasury stock account on the March 31, 2016, balance sheet?

A new company issues 2,000 shares of $5 par common stock in exchange for the services of a lawyer during its first month of business.The lawyer's normal fee is $15,000 for similar work.Which of the following would be recorded if the stock is not currently trading?

Carlton Industries has identified the following items and would like you to answer a few questions about their effect on Stockholders' Equity. -Which item decreases Retained Earnings and also credits a payable (liability)?

Stock dividends reduce the par value of the stock.

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.

Which of the following is true?

CarWorks Company has 100,000 authorized shares of $4 par common stock.The company issued 40,000 shares at $8.Subsequently, CarWorks declared a 2% stock dividend on a date when the market price was $11 a share.What is the amount transferred from the retained earnings account to paid-in capital accounts as a result of the stock dividend?

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 cash