Exam 11: Stockholders Equity

Galaxy Industries buys back 600,000 shares of its stock from investors at $45 a share.Two years later it reissues this stock for $65 a share.The stock reissue would be recorded with a debit to Cash for:

Which of the following statements about when cash dividends can be paid is not correct?

Flint Corporation's contributed capital totals $54,000,Retained Earnings equals $117,000,Treasury Stock equals $32,400,and Common Stock equals $18,000.If the company does not have any accumulated other comprehensive income (loss),stockholders' equity,what is the total amount of stockholders' equity?

Match each term with the appropriate definition.Not all definitions will be used. -Date of Declaration

McEnroe Inc.has outstanding 10 million shares of $2 par value common stock and 1 million shares of $4 par value preferred stock.The preferred stock has a 7% cumulative dividend preference.The company declares total dividends amounting to $50,000,$250,000,and $600,000 during 2017,2018,and 2019,respectively. Required: Part a.Compute the amount of dividends to be distributed to preferred and common shareholders during 2017. Part b.Compute the amount of dividends to be distributed to preferred and common shareholders during 2018. Part c.Compute the amount of dividends to be distributed to preferred and common shareholders during 2019.

Preferred stockholders:

With regards to the Dividends Payable and Dividends accounts,one of the closing entries required at year end,includes a:

The following data are taken from the stockholders' equity section of the balance sheet of Driftwood Company: What was the average issue price per share of the common stock?

Which of the following statements about a stock split is correct?

Queen Creek Co.had total assets of $280,000,total liabilities of $168,000 and stockholders' equity of $112,000 before repurchasing 1,000 shares of its $1 par value common stock for $14 per share.After this repurchase,total assets equal ________,total liabilities equal ________ and stockholders' equity equals ________.

Ferris Company reported the following on its balance sheet: total contributed capital of $186,000,treasury stock of $19,500 and total stockholder's equity of $237,500.Ferris had 1,000,000 authorized shares of its $0.01 par value common stock of which 200,000 were outstanding. What was the amount of Retained Earnings reported in the balance sheet?

Which of the following statements about the par value of common stock is not correct?

Lenders will sometimes impose dividend restrictions to:

Delta Inc.had 1,000,000 shares of $4 par value common stock authorized.On December 31,2018,there were 400,000 shares issued and outstanding.The market value of its common stock on that date was $100 per share.On January 5,2019,the board of directors declared a stock dividend. Required: Part a.Assume that you have 100 shares of Delta Inc.common stock.Determine how many shares will you have after a 100% stock dividend. Part b.Briefly explain the how a 100% stock dividend affects the stockholders' equity accounts and the total resources of the company.(Do not quantify the impacts or prepare a journal entry. ) Part c.Assume instead that the board declared a 10% stock dividend.Briefly explain how that 10% stock dividend affects the stockholders' equity accounts and the total resources of the company.(Do not quantify the impacts or prepare a journal entry. ) Part d.Identify three possible explanations for the declaration of a stock dividend.

A corporation does not have a legal obligation to pay dividends.

Which of the following statements about dividends in arrears is correct?

Which number is potentially the largest?

At the end of its first year of operations,Alder Co.had 150,000 shares of preferred stock,5% cumulative,$100 par value.It also has 1,000,000 shares of common stock $0.01 par value.(The share information represents the numbers of shares issued and outstanding for both types of stock. )If sufficient dividends are declared,what is the per share dividend that will be paid on the preferred stock?