Exam 19: Corporations: Stock Values, dividends, treasury Stocks, and Retained Earnings

Which of the following statements is false of treasury stock?

On May 31,Mason Corporation has the following stockholders' equity: Common Stock,$10 par value,6,000 shares issued and outstanding \6 0,000 Retained Earnings Total Stockholders' Equity The board of directors declared a 10% stock dividend on June 5 to the stockholders of record on June 15.The stock is to be distributed on June 30.On the date of declaration,the stock had a market value of $15 per share.Prepare the appropriate journal entries for these transactions.

A prior period adjustment would be necessary when:

A corporation purchased 35 shares of treasury stock for $40.The entry to record the transaction would include a:

Common Stock Dividend Distributable is a liability account.

What are the annual dividends on preferred stock,$20 par,500 authorized,250 shares issued,and a dividend rate of 12%?

Patterson Research has 200 shares of 10%,$100 par value,preferred stock,and 2000 shares of $10 par value common stock outstanding.Total paid-in capital is $40,000,and retained earnings are $0.There are one-year dividends in arrears on preferred stock.The book value per share on common stock is:

The payment of a cash dividend was recorded as payment to Miscellaneous Expense.This error would cause:

The entry to record the payment of a cash dividend would include a:

Using the following accounts: [1]Cash [2]Dividends payable [3]Preferred stock [4]Common stock [5]Dividend distributable [6]Paid-in capital in excess of par common stock [7]Paid-in capital in excess of par preferred stock [8]Paid-in capital from treasury stock [9]Retained earnings [10]Appropriation for plant expansion [11]Treasury stock [12]Income summary Indicate the account(s) to be debited and credited to record the following transactions. -Paid a cash dividend. Debit ________ & ________ & ________ Credit ________ & ________ & ________

Prior period adjustments are included in the statement of retained earnings.

An appropriation to retained earnings reduces total assets.

From the following,determine the book value per share for preferred and common stocks,assuming $2,000 of dividends are in arrears on the preferred stock. Stockholders' Equity Preferred Stock, 8 \% cumulative and \ 10 par value, \ 12 redemption value 5,000 shares issued and outstanding \2 0,000 Common Stock, \1 par value, 40,000 shares issued and outstanding 40,000 Retained Earnings 8,000 Total Stockholders' Equity

The Tiger Football Corporation has 7,500 shares of $1.00 par value common stock issued and outstanding.The board of directors declared a 2-for-1 stock split May 10,distributable on June 15,to stockholders of record on June 1.The Retained Earnings account balance is $50,000 on May 10.Prepare the equity section of the balance sheet on May 10 and June 15,before and after the stock split.

Which of the following dividend dates does not get a formal journal entry?

A corporation may issue a stock dividend for which of the following reasons?

Changes in retained earnings result from effects of prior period adjustments,net income or loss,or dividends declared.

Changes in retained earnings can result from:

Total stockholders' equity consists of retained earnings of $150,000 and paid-in capital of $600,000.There are 30,000 common shares outstanding.What is the book value per share?

A dividend is declared by: