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

What is the book value per share of common stock if total stockholders' equity is $450,000 with 15,000 shares of common stock outstanding?

Prepare the following journal entries for Complex Company.

Market value is the same as par value.

Malcolm Corporation declared a dividend of $5 per share on 1,000 shares. The entry to record the transaction would be to:

Retained earnings represent past accumulations of net income.

If a redemption value is not stated, market value is used instead.

The statement of retained earnings includes the account Preferred Stock.

A stock split has no effect on retained earnings.

Treasury stock is:

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

Patterson Research has 200 shares of 10%, $100 par value, preferred stock, and 2000 shares of $10 par value common stock outstanding. Total paid-in capital is $40,000, and retained earnings are $0. There are one-year dividends in arrears on preferred stock. The book value per share on common stock is:

If treasury stock is sold for less than cost, the entry to record the transaction would include a:

What are the annual dividends on preferred stock, $20 par, 500 authorized, 250 shares issued, and a dividend rate of 12%?

Which of the following would not be shown on the statement of retained earnings?

Declaration of a cash dividend causes:

Appropriations to retained earnings is:

The effect of a retained earnings appropriation is to:

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

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

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