Exam 12: Stockholders Equity

The contributed capital of a corporation does not include

The par value of the common stock represents the

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

Indicate on the blanks below the net effect (I = increase,D = decrease,NE = no effect)of each of the following entries on working capital. a.To record the declaration of a cash dividend b.To record the payment of a previously declared and recorded cash dividend c.To close the Dividends account at the end of the accounting period

Which of the following statements is not descriptive of common stock?

The entry to record the retirement of treasury stock will include a debit to Common Stock for the amount of the par value of the shares.

Which of the following is the appropriate entry to record the declaration of cash dividends?

A statement of stockholders' equity can take the place of a statement of retained earnings.

Use this information to answer the following question. Hernandez Corporation has 60,000 shares of $20 par value common stock outstanding.The following transactions occurred during the year: The entry to record the transaction of March 17 would be:

The following information relates to the number of common shares of the Marengo Corporation: Calculate the number of outstanding shares from the information given.Show your calculations.

Which of the following is not true about a 35 percent stock dividend?

Corporations are subject to less government control and regulation than are other forms of business.

A liquidating dividend is

Stockholders who own common stock usually have voting rights,whereas stockholders who own preferred stock usually do not have voting rights.

Which of the following statements is not true about a 2-for-1 stock split?

A stock dividend is a pro rata distribution of cash to a corporation's stockholders.

All of the following are stockholders' equity accounts except

On June 1,2013,Hale Corporation had 80,000 shares of $20 par value common stock outstanding.On June 2,2013,Hale declared a 50 percent stock dividend to be distributed on July 5,2013,to shareholders of record on June 15,2013.What amount of retained earnings should be transferred to contributed capital because of this dividend?

a.Elton Corporation has 6,000 shares of $100 par value,8 percent cumulative preferred stock and 10,000 shares of $50 par value common stock outstanding.All shares were issued at par value.In addition,retained earnings total $198,000.If the preferred stock is callable at $105 per share and one year's dividends are in arrears,compute book value per share of preferred stock. b.Assume the same facts as in a above.Calculate book value per share of common stock. c.Assume the same facts as in a above and that Elton Corporation declares a 15 percent stock dividend on its common stock.If the market value on the declaration date was $60 per share,for what amount will Additional Paid-in Capital,Common be credited? d.Assume the same facts as in a above and that Elton Corporation declares a 4-for-1 stock split on its preferred stock.After the split,total par value of preferred stock equals what amount?

A company purchases 600 shares of its $200 par value common stock at $220 per share.It then reissues 100 shares at $228 per share.The entry upon reissue of the stock would be: