Exam 10: Stockholders Equity

Treasury shares represent the

When stockholders receive a distribution of additional shares of stock, and there is a corresponding capitalization of retained earnings, a stock ____________________ has occurred.

The stockholders' equity section of a balance sheet at December 31, 2015 is provided below: How many shares of stock are issued?

Use the Statement of Stockholders' Equity for Lee's T.V. Company to answer the questions that follow:

"You Decide" Essay You are the chief accountant for Laureate Medical Group. The Board of Directors has decided to distribute $1,000,000 in excess cash to common shareholders. In what ways can this distribution be accomplished? What factors should be considered when determining the best way?

Match the terms to the definitions. a.authorized shares i.stock option b.issued shares j.stock warrant c.outstanding shares k.treasury stock d.par value l.call provision e.stated capital (legal capital) m.earnings per share f.preemptive right n.dividend yield ratio g.retained earnings o.dividend payout ratio h.stock split -A common stock provision that provides for the maintenance of stockholders' ownership percentage upon the issuance of new stock.

Match the following terms to their correct definition. a.Articles of incorporation i.Equity b.Common stock j.Exercise (strike)price c.Contributed capital k.Liquidating dividend d.Corporate charter l.No-par stock e.Current dividend preference m.Payment date f.Date of record n.Preferred stock g.Declaration date o.Prior period adjustment h.Dividends in arrears p.Return on common equity -Date on which the Board of Directors votes to pay a dividend.

Below is information from the stockholders' equity section of a balance sheet: Additional Information: Calculate the following financial ratios:

When a corporation declares a dividend, a liability must be recorded.

Match the terms to the definitions. a.authorized shares i.stock option b.issued shares j.stock warrant c.outstanding shares k.treasury stock d.par value l.call provision e.stated capital (legal capital) m.earnings per share f.preemptive right n.dividend yield ratio g.retained earnings o.dividend payout ratio h.stock split -An equity kicker whereby stockholders are granted rights to purchase shares of stock in the future.

Preferred stockholders typically do not have the right to vote at stockholders meetings.

Match the terms to the definitions. a.authorized shares i.stock option b.issued shares j.stock warrant c.outstanding shares k.treasury stock d.par value l.call provision e.stated capital (legal capital) m.earnings per share f.preemptive right n.dividend yield ratio g.retained earnings o.dividend payout ratio h.stock split -The arbitrary amount that establishes a minimum issue price for the stock.

Issued shares represent the

The ____________________ date is the date on which a corporation announces that it will pay a dividend.

When true no-par stock is sold for cash, the amount credited to the stock account is the par value times the number of shares sold.

MATCHING -The portion of the stock's issue price that exceeds par.

Match the following terms to their correct definition. a.Articles of incorporation i.Equity b.Common stock j.Exercise (strike)price c.Contributed capital k.Liquidating dividend d.Corporate charter l.No-par stock e.Current dividend preference m.Payment date f.Date of record n.Preferred stock g.Declaration date o.Prior period adjustment h.Dividends in arrears p.Return on common equity -In a stock option plan, the price at which employees can buy the stock.

A corporation reported the following amounts on its balance sheet at December 1, 2015: During December of 2015, the following transactions occurred:

Match the following terms to their correct definition. a.Articles of incorporation i.Equity b.Common stock j.Exercise (strike)price c.Contributed capital k.Liquidating dividend d.Corporate charter l.No-par stock e.Current dividend preference m.Payment date f.Date of record n.Preferred stock g.Declaration date o.Prior period adjustment h.Dividends in arrears p.Return on common equity -Individuals who hold this stock receive priority over common shareholders in the payment of dividends and the distribution of assets in the event of liquidation.

A corporation reported the following information in the stockholders' equity section of its balance sheet before its recent stock dividend: