Exam 11: Corporate Reporting and Analysis

Global Corporation had 50,000 shares of $20 par value common stock outstanding on July 1.Later that day the board of directors declared a 10% stock dividend when the market value of each share was $27.The entry to record the dividend declaration is:

A corporation declared and issued a 15% stock dividend on October 1.The following information was available immediately prior to the dividend: The amount that contributed capital will increase (decrease)as a result of recording this stock dividend is:

A company reported $1,050,000 in net income for the current year.Earnings per common share is $1.75 and the year-end market price of the shares is $31.50.Calculate the company's price earnings ratio.

A preemptive right means shareholders can purchase their proportional share of common stock issued later by the corporation.

A company has earnings per share of $6.50.Its dividend per share is $0.50,and its market price per share is $80.Its price-earnings ratio equals 13.

Retained earnings are part of the stockholders' claims on the company's net assets.

A corporation is a legal entity separate from its owners.

MBP Company has 10,000 shares of $10 par preferred stock,which were issued at par.It also has 250,000 shares of common stock outstanding,and its total stockholders' equity equals $4,000,000.The book value per common share is:

The cumulative net income and loss not distributed as dividends to a corporation's shareholders is called ________.

Preferred stock that has the right to prior periods' unpaid dividends even if they were not declared is called:

A corporation with $10 par common stock issues a small stock dividend.The capitalization of retained earnings is equal to:

A premium on common stock:

Lewis Company had net income of $67,000.The company had 9,000 weighted average common shares outstanding.The basic earnings per share equals $7.44 per share.

A corporation sold 14,000 shares of its $1 par value common stock at a cash price of $13 per share.The entry to record this transaction would include:

If a company resells treasury stock below the acquisition cost,a loss from the sale of treasury stock is recorded.

Book value per share:

The following data has been collected about Keller Company's stockholders' equity accounts: -Assuming the treasury shares were all purchased at the same price,the cost per share of the treasury stock is:

The board of directors of a corporation:

Common shareholders always share equally with all other shareholders (including preferred shareholders)in dividends.

Dividend yield is the percent of cash dividends paid to common shareholders relative to the: