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

The price a corporation pays when it reserves the right to retire or redeem stock at a specific price is the:

Prepare the following stock dividend journal entries for Tamera,Inc. $\text {June 19}$ $\quad$ $\text {Declared a 7 \% stock dividend to common stockholders. The stock has a par value of \(\$ 13\) and a}$ $\quad$ $\quad$ $\quad$ $\quad$ $\text { current market value of \$ 14. There are 60,000 shares of common stock outstanding.}$ $\text {July 2}$ $\quad$ $\text {The stock dividend is issued.}$

The payment of a cash dividend was debited to Retained Earnings and credited to Cash.This error would cause:

When treasury stock is sold,the Paid-in Capital in Excess of Par is returned.

Prepare a statement of retained earnings in proper form for White Corporation for the year ended December 31,20xx,from the following: Retained Earnings, January 1, 20xx \2 ,000 Dividends paid during the year 800 Net income for the year 3,000 Correction of prior year error.Purchase $\text { of lard recorded as rent expense }$ $\quad$ 1,000

A stock split:

If total stockholders' equity is $90,000 with 5,000 common shares outstanding,what is the book value per share?

Quinn Corporation has 2,000 shares of common stock issued and outstanding.The board of directors declared a $1.00 per share cash dividend on January 5,payable on March 5,to stockholders of record on February 5.Prepare the appropriate journal entries for the declaration and payment of the dividend.

Distribution of earnings to stockholders may be in the form of cash,or additional stock.

A stock split has no effect on retained earnings.

The cash purchase of treasury stock was recorded as a purchase on account.This error would cause:

Explain some possible reasons a company may declare a stock dividend instead of a cash dividend.

If treasury stock is re-issued at a price less than its cost,the debit entry could include:

When the corporation has only common stock,the total of stockholders' equity divided by the number of shares issued equals:

From the following,determine the book value per share for preferred and common stocks; no 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 \5 0,000 Common Stock, \1 par value, 40,000 shares issued and outstanding 40,000 Retained Earnings 16,000 Total Stockholders' Equity

At the end of the accounting cycle,net income will be closed into:

When treasury stock is reissued for more than cost:

What are the annual dividends on preferred stock,$20 par,2,000 shares authorized,700 shares issued,and a dividend rate of 5%?

When treasury stock was sold at cost,Cash was debited and Common Stock was credited.This error would cause:

A stock dividend may be distributed even if the company is short of cash.