Exam 17: Accounting for Stockholders Equity

Dante,Inc.reacquired 20,000 shares of its common stock for $18 per share on January 31.On March 1 they sold 7,000 shares for $20 per share.On April 1 they sold 3,000 shares for $15 per share.What is the necessary journal entry for March 1?

(Multiple Choice)

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Question 61

S & C Company issues 1,500 shares of common stock with a $2 par value.The issue price of the stock is $13 per share.What is the journal entry required to record the issuance of the shares?

(Multiple Choice)

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Question 62

A firm is under no legal obligation to distribute a ________ dividend,even after declaring one.

(Multiple Choice)

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Question 63

Sheldon,Inc.declared a stock dividend of 50,000 shares on a date when the company's common stock was selling for $18 per share.Prior to this date,Sheldon had 500,000 outstanding shares of $1 par value common stock.As a result of this stock dividend,Sheldon's common stock will ,the additional paid-in-capital will ,and the retained earnings will .

(Multiple Choice)

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Question 64

Gustav & Co.'s net income is $9,123,the market value is $121,234,and the book value of stockholders' equity is $65,432.Gustav's P/E Ratio is and the P/B Ratio is .

(Multiple Choice)

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Question 65

A change in stated value does not require shareholder approval and filings with the state.

(True/False)

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Question 66

The number of outstanding shares of common stock may be reduced by shares held in the treasury.

(True/False)

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Question 67

U.S.GAAP and IFRS use the same terminology for stockholders' equity components.

(True/False)

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Question 68

Preferred shares are generally voting and pay a fixed dividend.

(True/False)

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Question 69

Contributed capital includes amounts earned from the operations of a business.

(True/False)

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Question 70

Omega Company has issued both common and preferred stock.The preferred stock is convertible into common stock.The following information is provided for Omega Company Stockholders' equity: What is the necessary journal entry if 5,000 shares of preferred are converted under each independent scenario: a.Each share of convertible stock is convertible into 1.5 shares of common stock. b.Each share of convertible stock is convertible into 4 shares of common stock.

(Essay)

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(81)

Question 71

On January 1,2014,Illusions,Inc.issued 800 shares of $80 par value,callable preferred shares for $80,000.Illusions has the right to call the shares on January 1,2015 for $100 per share.What is the necessary journal entry to record the issuance of the callable shares?

(Multiple Choice)

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(72)

Question 72

Betta Corporation issued 300,000 shares of $2 par value stock.The book value of Betta's common stockholders' equity is equal to $30 million.Betta implements a two-for-one stock split.Complete the following table:

(Essay)

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(75)

Question 73

Corrections to past years' financial statements are called prior-period adjustments.

(True/False)

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Question 74

________ are shares for which the issuing entity has the right to "buy back" the shares at a specified price and future date.

(Multiple Choice)

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Question 75

Dali's Dessert Company provides the following information from the Stockholders' Equity Section of the Balance Sheet: Dali acquired 15,000 shares of common stock in the open market at a price of $12 per share and retired the shares.What is the journal entry to record this transaction?

(Essay)

4.9/5

(77)

Question 76

The total amount of stockholders' equity reported on the balance sheet is often ________.

(Multiple Choice)

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(79)

Question 77

When treasury shares are retired,the number of shares issued is reduced.

(True/False)

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Question 78

Leo & Sons,Inc.is authorized to issue 50,000 shares of $2 par value common stock.Prepare the journal entries for the following transactions (omit explanations): a.Issued 15,000 shares at $30 per share. b.Issued 250 shares in exchange for legal services valued at $9,000. c.Issued 5,000 shares at $40 per share,paying an underwriter $500 in stock issuance costs.

(Essay)

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(85)

Question 79

If a corporation wishes to change the par value on its common stock,it must amend its articles of incorporation.

(True/False)

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(86)

Question 80

Showing 61 - 80 of 114

Dante,Inc.reacquired 20,000 shares of its common stock for $18 per share on January 31.On March 1 they sold 7,000 shares for $20 per share.On April 1 they sold 3,000 shares for $15 per share.What is the necessary journal entry for March 1?

S & C Company issues 1,500 shares of common stock with a $2 par value.The issue price of the stock is $13 per share.What is the journal entry required to record the issuance of the shares?

A firm is under no legal obligation to distribute a ________ dividend,even after declaring one.

Gustav & Co.'s net income is $9,123,the market value is $121,234,and the book value of stockholders' equity is $65,432.Gustav's P/E Ratio is and the P/B Ratio is .

A change in stated value does not require shareholder approval and filings with the state.

The number of outstanding shares of common stock may be reduced by shares held in the treasury.

U.S.GAAP and IFRS use the same terminology for stockholders' equity components.

Preferred shares are generally voting and pay a fixed dividend.

Contributed capital includes amounts earned from the operations of a business.

On January 1,2014,Illusions,Inc.issued 800 shares of $80 par value,callable preferred shares for $80,000.Illusions has the right to call the shares on January 1,2015 for $100 per share.What is the necessary journal entry to record the issuance of the callable shares?

Betta Corporation issued 300,000 shares of $2 par value stock.The book value of Betta's common stockholders' equity is equal to $30 million.Betta implements a two-for-one stock split.Complete the following table:

Corrections to past years' financial statements are called prior-period adjustments.

________ are shares for which the issuing entity has the right to "buy back" the shares at a specified price and future date.

Dali's Dessert Company provides the following information from the Stockholders' Equity Section of the Balance Sheet: Dali acquired 15,000 shares of common stock in the open market at a price of $12 per share and retired the shares.What is the journal entry to record this transaction?

The total amount of stockholders' equity reported on the balance sheet is often ________.

When treasury shares are retired,the number of shares issued is reduced.

If a corporation wishes to change the par value on its common stock,it must amend its articles of incorporation.

The Financial Reporting Environment

Financial Reporting Theory

Judgment and Applied Financial Accounting Research

Review of the Accounting Cycle

Statements of Net Income and Comprehensive Net Income

Statements of Financial Position and Cash Flows and the Annual Report

Accounting and the Time Value of Money

Revenue Recognition

OL: Revenue Recognition

Short-Term Operating Assets: Cash and Receivables

Short-Term Operating Assets: Inventory

Long-Term Operating Assets: Acquisition, cost Allocation, and Derecognition

Long-Term Operating Assets: Departures From Historical Cost

Operating Liabilities and Contingencies

OL: Operating Liabilities and Contingencies

Financing Liabilities

Investing Assets

Accounting for Income Taxes

Accounting for Employee Compensation and Benefits

Earnings Per Share

Accounting Corrections and Error Analysis

Filters

Exam 17: Accounting for Stockholders Equity

Dante,Inc.reacquired 20,000 shares of its common stock for $18 per share on January 31.On March 1 they sold 7,000 shares for $20 per share.On April 1 they sold 3,000 shares for $15 per share.What is the necessary journal entry for March 1?

S & C Company issues 1,500 shares of common stock with a $2 par value.The issue price of the stock is $13 per share.What is the journal entry required to record the issuance of the shares?

A firm is under no legal obligation to distribute a ________ dividend,even after declaring one.

Gustav & Co.'s net income is $9,123,the market value is $121,234,and the book value of stockholders' equity is $65,432.Gustav's P/E Ratio is ________ and the P/B Ratio is ________.

A change in stated value does not require shareholder approval and filings with the state.

The number of outstanding shares of common stock may be reduced by shares held in the treasury.

U.S.GAAP and IFRS use the same terminology for stockholders' equity components.

Preferred shares are generally voting and pay a fixed dividend.

Contributed capital includes amounts earned from the operations of a business.

On January 1,2014,Illusions,Inc.issued 800 shares of $80 par value,callable preferred shares for $80,000.Illusions has the right to call the shares on January 1,2015 for $100 per share.What is the necessary journal entry to record the issuance of the callable shares?

Betta Corporation issued 300,000 shares of $2 par value stock.The book value of Betta's common stockholders' equity is equal to $30 million.Betta implements a two-for-one stock split.Complete the following table:

Corrections to past years' financial statements are called prior-period adjustments.

________ are shares for which the issuing entity has the right to "buy back" the shares at a specified price and future date.

Dali's Dessert Company provides the following information from the Stockholders' Equity Section of the Balance Sheet: Dali acquired 15,000 shares of common stock in the open market at a price of $12 per share and retired the shares.What is the journal entry to record this transaction?

The total amount of stockholders' equity reported on the balance sheet is often ________.

When treasury shares are retired,the number of shares issued is reduced.

If a corporation wishes to change the par value on its common stock,it must amend its articles of incorporation.

The Financial Reporting Environment

Financial Reporting Theory

Judgment and Applied Financial Accounting Research

Review of the Accounting Cycle

Statements of Net Income and Comprehensive Net Income

Statements of Financial Position and Cash Flows and the Annual Report

Accounting and the Time Value of Money

Revenue Recognition

OL: Revenue Recognition

Short-Term Operating Assets: Cash and Receivables

Short-Term Operating Assets: Inventory

Long-Term Operating Assets: Acquisition, cost Allocation, and Derecognition

Long-Term Operating Assets: Departures From Historical Cost

Operating Liabilities and Contingencies

OL: Operating Liabilities and Contingencies

Financing Liabilities

Investing Assets

Accounting for Income Taxes

Accounting for Employee Compensation and Benefits

Earnings Per Share

Accounting Corrections and Error Analysis

Filters

Gustav & Co.'s net income is $9,123,the market value is $121,234,and the book value of stockholders' equity is $65,432.Gustav's P/E Ratio is and the P/B Ratio is .