Exam 12: Stockholders Equity

The dividends yield is measured in terms of "times."

To evaluate the amount of dividends they receive,investors use the ratio called

A company purchases 300 shares of its $50 par value common stock at $55 per share.It then reissues 50 shares at $57 per share.The entry upon reissue of the stock would be:

Return on equity equals net income divided by average stockholders' equity.

If a corporation has issued common stock at various prices that exceed par value,legal capital will be made up of the

Treasury shares plus outstanding shares equal

Preferred stock is considered the residual equity of a corporation.

Winston Corporation has retained earnings of $400,000.It has 5,000 shares of 6 percent,$200 par value preferred stock outstanding that is callable at 102.The preferred stock is cumulative,and one year of dividends is in arrears.It also has 10,000 shares of $100 par value common stock outstanding.Assume all stock is issued at par.The book value of each share of preferred stock is

A statement of retained earnings is not as informative as a statement of stockholders' equity.

Use the following information to answer the question below. The following transactions involving Culbert Corporation occurred during the year: The entry to record the June 5 transaction would be:

Treasury shares are shares that are issued and outstanding.

The stockholders' equity of Westester Corporation as of December 31,2013,is as follows: The preferred stock has one year's dividends in arrears. a.Compute the book value per share of preferred stock and the book value per share of common stock.(Round to the nearest cent.) b.Assume the preferred stock has two years' dividends in arrears.Compute the book value per share of preferred stock and the book value per share of common stock.(Round to the nearest cent.)

Mercer Corporation has 200,000 shares of $10 stated value no-par common stock authorized,and 160,000 shares were outstanding during 2012.The following transactions relate to cash dividends of Mercer Corporation for the year ended December 31,2012.Prepare entries in journal form without explanations to record the following transactions:

A stock dividend will cause an increase in the total number of shares issued and outstanding.

Lamar Corporation has 3,000 shares of $150 par value,7 percent cumulative preferred stock,and 10,000 shares of $15 par value common stock outstanding during its first five years of operation.Lamar Corporation paid cash dividends as follows: 2009,$25,500; 2010,$0; 2011,$97,500; 2012,$45,000; 2013,$22,500.The amount of dividends received by the preferred stockholders during 2011 was

A stock split results in a transfer of the market value of the stock from Retained Earnings to Contributed Capital.

A person owning stock on the date of payment will receive stock dividends that have been declared.

Start-up and organization costs include all of the following except

On August 26,2013,Booth Corporation's board of directors declared a 2 percent stock dividend applicable to the outstanding shares of its $5 par value common stock,of which 150,000 shares are authorized,130,000 are issued,and 10,000 are held in the treasury.The stock dividend was distributable on September 25 to stockholders of record on September 10.On August 26,the market value of the common stock was $12 per share.On November 26,the board of directors declared a $0.20 per share cash dividend.No other stock transactions have occurred.Record the transactions on August 26,September 10,September 25,and November 26.Make the December 31 entry to close Dividends and Stock Dividends to Retained Earnings.

The information that follows pertains to stockholders' equity data of the Keswick Corporation on December 31,2013.Compute the amount of each item indicated by a letter in the listing below.Round answers to two decimal places.