Question 1

Growth stocks generally pay large dividends on a regular basis.

Accepted Answer

A) True 
 B)False

Question 2

A stock dividend is recorded with a transfer from:

Accepted Answer

A) Contributed capital to retained earnings. 
B) Retained earnings to paid-in capital. 
C) Retained earnings to assets. 
D) Contributed capital to assets. 
E) Assets to contributed capital. 
A) Contributed capital to retained earnings. 
B) Retained earnings to paid-in capital. 
C) Retained earnings to assets. 
D) Contributed capital to assets. 
E) Assets to contributed capital.

Question 3

On September 1,Ziegler Corporation had 50,000 shares of $5 par value common stock,and $1,500,000 of retained earnings.On that date,when the market price of the stock is $15 per share,the corporation issues a 2-for-1 stock split.The general journal entry to record this transaction is:

Accepted Answer

A) Debit Retained Earnings $750,000; credit Common Stock Split Distributable $750,000. 
B) Debit Retained Earnings $750,000; credit Common Stock $750,000. 
C) Debit Retained Earnings $250,000; credit Common Stock $250,000. 
D) Debit Retained Earnings $250,000; credit Stock Split Payable $250,000. 
E) No entry is made for this transaction. 
A) Debit Retained Earnings $750,000; credit Common Stock Split Distributable $750,000. 
B) Debit Retained Earnings $750,000; credit Common Stock $750,000. 
C) Debit Retained Earnings $250,000; credit Common Stock $250,000. 
D) Debit Retained Earnings $250,000; credit Stock Split Payable $250,000. 
E) No entry is made for this transaction.

Question 4

Parlay Corporation has 2,000,000 shares of $0.50 par value common stock outstanding.The following selected transactions related to the company's stock took place during the current year:
   Prepare necessary journal entries to record the events of April 15,May 1 and May 10.

Accepted Answer

The answer of Parlay Corporation has 2,000,000 shares of $0.50...

Question 5

A company issued 70 shares of $30 par value preferred stock for $4,000 cash.The journal entry to record the issuance is:

Accepted Answer

A) Debit Cash $2,100; credit Preferred Stock $2,100. 
B) Debit Investment in Preferred Stock $2,100; credit Cash $2,100. 
C) Debit Cash $4,000; credit Preferred Stock $4,000. 
D) Debit Preferred Stock $2,100,debit Investment in Preferred Stock $1,900; credit Cash $4,000. 
E) Debit Cash $4,000; credit Paid-in Capital in Excess of Par Value,Preferred Stock $1,900,credit Preferred Stock $2,100. 
A) Debit Cash $2,100; credit Preferred Stock $2,100. 
B) Debit Investment in Preferred Stock $2,100; credit Cash $2,100. 
C) Debit Cash $4,000; credit Preferred Stock $4,000. 
D) Debit Preferred Stock $2,100,debit Investment in Preferred Stock $1,900; credit Cash $4,000. 
E) Debit Cash $4,000; credit Paid-in Capital in Excess of Par Value,Preferred Stock $1,900,credit Preferred Stock $2,100.

Question 6

On January 10,Mood Corporation purchased 15,000 shares of its own common stock at $17.50 per share.On August 4,a total of 2,000 treasury shares were sold at $19.00 per share.These are the only treasury stock transactions ever made by the corporation.Prepare the journal entries required on January 10 and August 4.

Accepted Answer

The answer of On January 10,Mood Corporation purchased 15,000 shares...

Question 7

For each of the following independent transactions a through d,prepare the necessary journal entry:
(a)Declared a $0.40 per share cash dividend on 300,000 shares of preferred stock outstanding.
(b)Declared and distributed an 8% stock dividend on 800,000 shares of $5 par value common stock outstanding.Market price per common share on this date was $25.
(c)Declared and distributed a 2-for-1 stock split on 400,000 shares of $10 par value common stock outstanding.
(d)Declared and distributed a 35% stock dividend on 700,000 common shares of $1 par value common stock outstanding.Market price per common share on this date was $20.

Accepted Answer

The answer of For each of the following independent transactions...

Question 8

Calculate the balance in Paid-in Capital,Treasury Stock,on September 1 assuming its beginning-year balance is zero.

Accepted Answer

@#IMG-DLM&
2) There is a credit balance

Question 9

________ is the stockholders' equity applicable to common shares divided by the number of common shares outstanding.

Accepted Answer

Book value

Question 10

A stock dividend does not reduce a corporation's assets or its stockholders' equity.

Accepted Answer

A) True 
 B)False

Question 11

All of the following regarding accounting for Treasury Stock are true except:

Accepted Answer

A) Corporations do not record gains or losses on transactions involving their own stock. 
B) Treasury Stock receives cash dividends but not stock dividends. 
C) Purchasing Treasury Stock reduces the corporation's assets and equity by equal amounts. 
D) Treasury Stock is presented on the balance sheet as a contra equity account. 
E) Treasury Stock does not have voting rights. 
A) Corporations do not record gains or losses on transactions involving their own stock. 
B) Treasury Stock receives cash dividends but not stock dividends. 
C) Purchasing Treasury Stock reduces the corporation's assets and equity by equal amounts. 
D) Treasury Stock is presented on the balance sheet as a contra equity account. 
E) Treasury Stock does not have voting rights.

Question 12

The journal entry to record the declaration of dividends on common stock includes a debit to Retained Earnings and a credit to Common Dividend Payable.

Accepted Answer

A) True 
 B)False

Question 13

Fetzer Company declared a $0.55 per share cash dividend.The company has 200,000 shares authorized,190,000 shares issued,and 8,000 shares in treasury stock.The journal entry to record the payment of the dividend is:

Accepted Answer

A) Debit Retained Earnings $104,500; credit Common Dividends Payable $104,500. 
B) Debit Common Dividends Payable $104,500; credit Cash $104,500. 
C) Debit Retained Earnings $100,100; credit Common Dividends Payable $100,100. 
D) Debit Common Dividends Payable $100,100; credit Cash $100,100. 
E) Debit Retained Earnings $110,000; credit Common Dividends Payable $110,000. 
A) Debit Retained Earnings $104,500; credit Common Dividends Payable $104,500. 
B) Debit Common Dividends Payable $104,500; credit Cash $104,500. 
C) Debit Retained Earnings $100,100; credit Common Dividends Payable $100,100. 
D) Debit Common Dividends Payable $100,100; credit Cash $100,100. 
E) Debit Retained Earnings $110,000; credit Common Dividends Payable $110,000.

Question 14

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 number of shares of treasury stock is:

Accepted Answer

A) 1,150. 
B) 1,000. 
C) 575. 
D) 11,000. 
E) 21,000. 
A) 1,150. 
B) 1,000. 
C) 575. 
D) 11,000. 
E) 21,000.

Question 15

The amount of annual cash dividends distributed to common shareholders relative to the common stock's market value is the:

Accepted Answer

A) Dividend payout ratio. 
B) Dividend yield. 
C) Price-earnings ratio. 
D) Current yield. 
E) Earnings per share. 
A) Dividend payout ratio. 
B) Dividend yield. 
C) Price-earnings ratio. 
D) Current yield. 
E) Earnings per share.

Question 16

A company's stock is selling for $63.20 per share and its earnings per share is $3.60 for the current year.Calculate the price-earnings ratio.

Accepted Answer

Price-Earnings Ratio = Market

Question 17

The price-earnings ratio is computed by dividing earnings per share by the par value per share.

Accepted Answer

A) True 
 B)False

Question 18

The least amount that the buyers of stock must contribute to the corporation or be at risk to pay creditors at a future date is called the:

Accepted Answer

A) Par value of preferred. 
B) Minimum legal capital. 
C) Premium capital. 
D) Stated value. 
E) Working capital. 
A) Par value of preferred. 
B) Minimum legal capital. 
C) Premium capital. 
D) Stated value. 
E) Working capital.

Question 19

Book value per common share is computed by:

Accepted Answer

A) Multiplying the number of common shares outstanding times the market price per common share. 
B) Dividing total assets by the number of shares outstanding. 
C) Dividing stockholders' equity applicable to common shares by the number of common shares outstanding. 
D) Multiplying the number of common shares outstanding by par value per share. 
E) Dividing the number of common shares outstanding by stockholders' equity applicable to common shares. 
A) Multiplying the number of common shares outstanding times the market price per common share. 
B) Dividing total assets by the number of shares outstanding. 
C) Dividing stockholders' equity applicable to common shares by the number of common shares outstanding. 
D) Multiplying the number of common shares outstanding by par value per share. 
E) Dividing the number of common shares outstanding by stockholders' equity applicable to common shares.

Question 20

A corporation is responsible for its own acts and debts because it is considered a ________.

Accepted Answer

separate l

Exam 11: Corporate Reporting and Analysis

Growth stocks generally pay large dividends on a regular basis.

A stock dividend is recorded with a transfer from:

On September 1,Ziegler Corporation had 50,000 shares of $5 par value common stock,and $1,500,000 of retained earnings.On that date,when the market price of the stock is $15 per share,the corporation issues a 2-for-1 stock split.The general journal entry to record this transaction is:

Parlay Corporation has 2,000,000 shares of $0.50 par value common stock outstanding.The following selected transactions related to the company's stock took place during the current year: Prepare necessary journal entries to record the events of April 15,May 1 and May 10.

A company issued 70 shares of $30 par value preferred stock for $4,000 cash.The journal entry to record the issuance is:

Calculate the balance in Paid-in Capital,Treasury Stock,on September 1 assuming its beginning-year balance is zero.

________ is the stockholders' equity applicable to common shares divided by the number of common shares outstanding.

A stock dividend does not reduce a corporation's assets or its stockholders' equity.

All of the following regarding accounting for Treasury Stock are true except:

The journal entry to record the declaration of dividends on common stock includes a debit to Retained Earnings and a credit to Common Dividend Payable.

Fetzer Company declared a $0.55 per share cash dividend.The company has 200,000 shares authorized,190,000 shares issued,and 8,000 shares in treasury stock.The journal entry to record the payment of the dividend is:

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 number of shares of treasury stock is:

The amount of annual cash dividends distributed to common shareholders relative to the common stock's market value is the:

A company's stock is selling for $63.20 per share and its earnings per share is $3.60 for the current year.Calculate the price-earnings ratio.

The price-earnings ratio is computed by dividing earnings per share by the par value per share.

The least amount that the buyers of stock must contribute to the corporation or be at risk to pay creditors at a future date is called the:

Book value per common share is computed by:

A corporation is responsible for its own acts and debts because it is considered a ________.

Accounting in Business

Accounting for Business Transactions

Adjusting Accounts for Financial Statements

Accounting for Merchandising Operations

Inventories and Cost of Sales

Cash,fraud,and Internal Controls

Accounting for Receivables

Accounting for Long-Term Assets

Accounting for Current Liabilities

Accounting for Long-Term Liabilities

Reporting Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Costing and Analysis

Process Costing and Analysis

Activity-Based Costing and Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing and Analysis

Master Budgets and Performance Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Time Value of Money

Investments

Lean Principles and Accounting

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