Exam 18: Shareholders Equity

The balance sheet of Messi Services included the following shareholders' equity section at December 31, 2018: On January 5, 2019, Holmes purchased 2 million treasury shares for $9 million. Immediately after the purchase of the shares, the balances in the paid-in capital- excess of par and retained earnings accounts are:

Characteristics of the corporate form that have led to the growth of this form of business ownership include all of the following except:

As of December 31, 2018, Warner Corporation reported the following: During 2019, half of the treasury stock was resold for $240,000; net income was $600,000; cash dividends declared were $1,500,000; and stock dividends declared were $500,000. - What would shareholders' equity be as of December 31, 2019?

Doug Graves Cemetery had 50,000 shares of common stock issued and outstanding at January 1, 2018. During 2018, Graves took the following actions: In Graves's statement of shareholders' equity for 2018, what amount should Graves report as dividends?

The corporate charter of Llama Co. authorized the issuance of 10 million, $1 par common shares. During 2018, its first year of operations, Llama had the following transactions: What amount should Llama report as additional paid-in capital in its December 31, 2018, balance sheet?

In terms of business volume, the dominant form of business organization is the:

When a property dividend is declared, the property to be distributed should be revalued to fair value as of the:

Common shareholders usually have all of the following rights except:

Mandatorily redeemable preferred stock (preference shares) is reported as debt, with the dividends reported in the income statement as interest expense, using:

The following information comes from the 2018 Annual Report to stockholders of Composition Inc. (in thousands): From the Statement of Changes in Shareholders' Equity: From the Statement of Cash Flows: Cash flows from financing activities: What was the fair value of the treasury stock exchanged for asset acquisitions for 2017?

Retained earnings represent a company's:

Under IFRS, components of other comprehensive income:

The typical rights of preferred shares usually include:

The following information comes from the 2018 Annual Report to stockholders of Composition Inc. (in thousands): From the Statement of Changes in Shareholders' Equity: From the Statement of Cash Flows: Cash flows from financing activities: What was the average cost per share of the treasury stock purchased by Composition during 2017 and 2018, respectively?

Use I = Increase, D = Decrease, or N = No effect, to indicate the effect on retained earnings for each of the listed transactions.

When dividends are declared in one fiscal year and paid in the next fiscal year, the liability for the dividend should be recorded as of the:

Authorized common stock refers to the total number of shares:

The prescribed accounting treatment for stock dividends implicitly assumes that shareholders are fooled by "small" stock dividends and benefit by the market value of their additional shares. Explain this statement. Is it logical?

Gabriel Company views share buybacks as treasury stock. In its first treasury stock transaction, Gabriel purchased treasury stock for more than the price at which the stock was originally issued. What is the effect of the purchase of the treasury stock on each of the following?

The shareholders' equity of HS Corporation includes $300,000 of $1 par common stock and $600,000 par of 6% cumulative preferred stock. The board of directors of HS declared cash dividends of $70,000 in 2018 after paying $30,000 cash dividends in 2017 and $50,000 in 2016. Required: What is the amount of dividends common shareholders will receive in 2018?