Exam 13: Accounting for Corporations

Prior period adjustments are reported in the:

Preferred stock which confers rights to prior periods' unpaid dividends even if they were not declared is called:

Ultimate Sportswear has $100,000 of 8% noncumulative, nonparticipating, preferred stock outstanding. Ultimate Sportswear also has $500,000 of common stock outstanding. In the company's first year of operation, no dividends were paid. During the second year, the company paid cash dividends of $30,000. This dividend should be distributed as follows:

West Company declared a $0.50 per share cash dividend. The company has 190,000 shares issued, and 10,000 shares in treasury stock. The journal entry to record the dividend declaration is:

Preferred stock that allows preferred stockholders to share with common stockholders any dividends paid in excess of the percent or dollar amount stated on the preferred stock is called:

The stockholders' equity section of a company's year-end balance sheet follows: 109 Preferred stock, \ 50 par value, 9\% cumulative and \ 500,000 nonparticipating, 10,000 shares outstanding Paid-in capital in excess of par value, preferred stock Total capital paid-in by preferred stockholders \5 50,000 Preferred stock, \ 50 par value, 9\% cumulative and \ 500,000 nonparticipating, 10,000 shares outstanding Paid-in capital in excess of par value, preferred stock Total capital paid-in by preferred stockholders \5 50,000 Total capital paid-in by preferred stockholders \5 50,000 Common stock, \ 0.50 par value, 1,500,000 shares \ 750,000 outstanding Paid-in capital in excess of par value, common stock 150,000 Total capital paid-in by common stockholders 900,000 Total paid-in capital \ 1,450,000 Retained earnings 1,690,000 Total stockholders' equity \ 3,140,000 The preferred stock has a call price of $51.50 per share plus dividends in arrears. Only one year of dividends is in arrears. Calculate the book value per (1) preferred share, and (2) common share.

What is treasury stock? What reasons might a company hold treasury stock?

The dividend yield is computed by dividing: