Exam 10: Stockholders Equity

-Refer to Lakeshore Industries. What is the effect on the company's accounting equation of issuing 1,000 additional shares of common stock at $15 per share?

Refer to Ladder Distributors. Suppose the company reissued 1,000 shares of its treasury stock on June 1, 2015, for $39 each. Which of the following is true regarding the entry required to record this transaction?

When a corporation issues a stock dividend, which of the following is true?

The following stockholders' equity information was available at January 1, 2014: Record the purchase of the treasury stock on November 30, 2013 and the January 10, 2014 sale of 500 shares of treasury stock for $70 per share.

Which of the following is one of the elements of stockholders' equity?

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 -Cumulative preferred dividends that have not been paid.

A corporation reported net income of $60,000, declared and paid cash dividends of $80,000, and issued 3,000 shares of $2 par common stock at $15 per share during the year. What total effects would these transactions have on the following stockholders' equity accounts? Retained Earnings Common Stock

What types of accounts are Treasury Stock and Paid-in Capital from Treasury Stock Transactions? Treasury Stock Paid-in Capital from Treasury Stock Transactions

If a corporation desires to reacquire some of its issued shares of stock, how would it accomplish this, i.e., how would the corporation determine which of its shares to buy back or from which stockholders?

Outstanding shares represent the

All of the following are reasons that a corporation may purchase treasury stock except

The number of shares issued minus the number of shares of treasury stock is ____________________ shares.

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 -Shares repurchased and held by the corporation.

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 issued shares actually in the hands of stockholders rather than held as treasury stock.

After a corporation declares a cash dividend, what takes place on the date of record?

Leather Creations has been in business for two years. On December 31, 2015 (the end of the second year), the company had the following capital stock account balances immediately prior to a meeting of its board of directors.: No dividends were paid during 2014. Net income for 2015 is $110,000. At its December 31, 2015 meeting the board declares a cash dividend. Complete the table below to indicate the amount of dividends that would be distributed to each class of stockholder if the following amounts of dividends are available:

If a corporation declares a 2-for-1 stock split, which of the following is true?

A call provision sets forth provisions for a corporation to redeem its preferred stock at a fixed price on or after a specified date.

Which one of the following is not a reason why a corporation's ability to pay dividends may be restricted?

Which of the following statements is true with regard to equity capital?