Exam 10: Stockholders Equity

If the stated cash dividend on cumulative preferred stock has been unpaid for a period of one year or more, it is referred to as a dividend ____________________.

Distinguish between stock warrants and stock options.

The stockholders' equity section of a balance sheet at December 31, 2015, is as follows:

Suppose a corporation issues 5,000 shares of $1 par common stock for $30 per share. In addition to the increase in cash, what effect does this transaction have on the accounting equation?

A corporation reported the following information at December 31, 2015:

Cumulative and participating dividend features are typically associated with preferred stock.

A corporation was incorporated on January 1, 2013. Its corporate charter provided for a maximum of 1,000,000 shares of common stock to be sold in the future of the corporation. In January, 150,000 shares were sold to the public and an additional 100,000 shares were sold in October. In November, 15,000 of the issued shares were bought back by the corporation. Complete the table below as of the end of 2013.

Shares outstanding may be less than shares issued.

Refer to Ladder Distributors. What is the total amount of stockholders' equity that will be presented on the company's March 31, 2015, balance sheet?

Refer to LaFarge North America. How many shares of common stock are outstanding?

Refer to Lake Lanier Grill, Inc. If all of the 1,000 shares that Lake Lanier Grill repurchased on March 1 were later reissued for $4.00 per share, the journal entry to record this transaction includes a debit to what account and for what amount?

The equity section of a balance sheet at December 31, 2015 is provided below: No dividends were paid during 2013 and 2014, but the company plans to issue a cash dividend of $2,000 on December 31, 2015. Determine the total dividend for each class of stock under each of the following assumptions:

The ____________________ ratio is computed by dividing common stock dividends by net income.

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 -The sum of all preferred stock, common stock, and additional paid-in capital account balances

When a corporation declares a cash dividend, which of the following is true?

Lending Branch, Inc. was incorporated as a new business on May 1, 2014. The company is authorized to issue 50,000 shares of $1 par common stock and 10,000 shares of 4%, $5 par cumulative, participating preferred stock. On May 1, 2014, the company issued 15,000 shares of common stock for $8 per share. Net income for the period ended December 31, 2014 ,was $115,000. Cash dividends in the amount of $30,000 were declared, but only $25,000 were paid as of year-end.Prepare the stockholders' equity section of the balance sheet at December 31, 2014.

When stockholders exchange their shares of stock for additional shares, and there is a corresponding reduction in the par value of the stock, a stock ____________________ has occurred.

The following information pertains to Leapfrog Academy at December 31, 2015: Prepare the stockholders' equity section of the balance sheet at December 31, 2015.

Selected data from the company's financial statements are presented below: -Refer to the information presented above for La Paz Restaurants. The 2015 dividend payout ratio is reported as

Authorized stock represents the