Exam 18: Shareholders Equity

A stock split:

Boxer Company owned 20,000 shares of King Company that were purchased in 2016 for $500,000. On May 1, 2018, Boxer declared a property dividend of 1 share of King for every 10 shares of Boxer stock. On that date, there were 50,000 shares of Boxer stock outstanding. The market value of the King stock was $30 per share on the date of declaration and $32 per share on the date of distribution. By how much is retained earnings reduced by the property dividend?

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. -The 2019 sale of half of the treasury stock would:

Yellow Enterprises reported the following ($ in 000s) as of December 31, 2018. All accounts have normal balances. During 2019 ($ in 000s), net income was $9,000; 25% of the treasury stock was resold for $450; cash dividends declared were $600; cash dividends paid were $500. - What ($ in 000s) was shareholders' equity as of December 31, 2019?

The shareholders' equity of Red Corporation includes $200,000 of $1 par common stock and $400,000 par of 6% cumulative preferred stock. The board of directors of Red declared cash dividends of $50,000 in 2018 after paying $20,000 cash dividends in 2017 and $40,000 in 2016. What is the amount of dividends common shareholders will receive in 2018?

The preemptive right refers to the shareholder's right to:

Coy, Inc. initially issued 200,000 shares of $1 par stock for $1,000,000 in 2016. In 2017, the company repurchased 20,000 shares for $200,000. In 2018, 10,000 of the repurchased shares were resold for $160,000. In its balance sheet dated December 31, 2018, Coy, Inc.'s treasury stock account shows a balance of:

Mandatorily redeemable preferred stock is reported as a liability.

Any dividend that is considered to be a liquidating dividend will:

When preferred stock carries a redemption privilege, the shareholders may:

The December 31, 2018, balance sheet of Springer Company included the following: Springer completed the following transactions in 2018 relating to treasury stock: Required: Assuming Springer uses the cost method, prepare journal entries to record the foregoing transactions on a FIFO basis.

The balance sheet reports the balances of shareholders' equity accounts. What additional information is provided by the statement of shareholders' equity?

Some preferred stock is cumulative while other preferred stock is noncumulative. What does this mean?

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Cumulative

The declaration and issuance of a stock dividend on shares of common stock:

Preferred stock is called preferred because it usually has two preferences. These preferences relate to:

What is the effect of a stock split (not effected in the form of a stock dividend) on each of the following?

Which of the following statements is true when dividends are not declared or paid on cumulative preferred stock?

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Earnings-price ratio

Beasley Crossing prepares its financial statements in accordance with International Financial Reporting Standards (IFRS). The company issued shares of the company's Class B stock. Beasley Crossing should report the stock in the company's statement of financial position: