Exam 19: Corporations: Stock Values, Dividends, Treasury Stocks, and Retained Earnings

Declaration of a cash dividend was recorded by debiting Operations Expense and crediting Cash. This error would cause:

The date of record for cash dividends is:

Common Stock Dividend Distributable is a liability account.

An appropriation to retained earnings reduces total assets.

Par value is the price per share a corporation pays to holders of stock when it is redeemed.

An exchange of one share of an old issue of stock for a multiple number of shares of a new issue of stock with reduced par value is known as a:

The board of Bogswell, Inc. declared a $2 per share cash dividend on common stock. The corporation has 4,000 shares of common stock outstanding. The entry required to distribute the dividend is:

Prepare the following stock dividend journal entries for Tamera, Inc.

To record the purchase of treasury stock:

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

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

Baxter Corporation has 1,000 shares of $5 par value common stock issued and outstanding. Journalize the following Baxter transactions for 20XX:

Ariel Investigations has total paid-in capital of $90,000 and retained earnings of $60,000. It has 200 shares of $100 par value common stock outstanding. The book value of each share of common stock is:

The retained earnings section after a two-for-one stock split will:

Book value per share is found by dividing total assets by total stockholders' equity.

When treasury stock is purchased:

A prior period adjustment is corrected to the ending balance of Retained Earnings.

Treasury stock was purchased and recorded as an asset. This error would cause:

Using the following accounts: Indicate the account(s)to be debited and credited to record the following transactions. -Declared a cash dividend. Debit ________ & ________ & ________ Credit ________ & ________ & ________

Which of the following in not true about retained earnings?