Exam 10: Stockholders Equity

Par value represents the

If preferred stock is convertible, then the preferred shareholders have the option to trade voting privileges for the dividend payment preference.

-Refer to Landmark Company. If the company repurchased 500 shares of its common stock for $20 per share, what is the amount of total stockholders' equity after this transaction?

-Refer to Landmark Company. The company's total capital stock is

Accumulated other comprehensive income is NOT considered to be a source of stockholders' equity.

Refer to Ladder Distributors. How much should be reported on the company's March 31, 2015, balance sheet for treasury stock?

When a company issues no-par stock with no stated value, there is no need for an account titled "paid-in capital in excess of par."

The ____________________ right provides that common stockholders may keep the same percentage of ownership if new stock is issued.

The following information is available at January 1, 2015: During 2015, the following transactions occurred: Record journal entries for each of these 2015 transactions.

Refer to Lake Lanier Grill, Inc. The journal entry to record the transaction on March 1 includes a credit to what account and for what amount?

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 -Another term for articles of incorporation

If preferred stock is participating, then the preferred shareholders have the right to share in excess dividends above their stated dividend.

Which of the following statements is false regarding the issuance of stock versus bonds to raise capital for a corporation?

MATCHING -Shares of stock that are distributed in a process known as capitalization of retained earnings.

If a new business does not have access to the major capital markets, it may depend upon venture capital for its initial equity capital.

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 number of shares the corporation has sold to stockholders.

A corporation reported the following information at December 31, 2014:

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 -Document that authorizes the creation of the corporation, setting forth its name and purpose and the names of the incorporators.

Refer to Lanthier's Heating & Air. What is the maximum amount that can be reported on the balance sheet for common stock and preferred stock, respectively, if all of the stock is issued? Common Stock Preferred Stock

Identify and describe the four primary rights for the owners of common stock.