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

Barkley's Resort had 2,000 shares of $20 par value common stock outstanding. On June 1, Barkley's purchased 200 shares of treasury stock for $21 per share and later reissued them for $22 per share. What amount of profit from the re-issuance will be reported on the income statement?

A corporation may issue a stock dividend for which of the following reasons?

Quinn Corporation has 2,000 shares of common stock issued and outstanding. The board of directors declared a $1.00 per share cash dividend on January 5, payable on March 5, to stockholders of record on February 5. Prepare the appropriate journal entries for the declaration and payment of the dividend.

When treasury stock was sold below cost, the decrease was debited to Loss on Sale. This error would cause:

Treasury stock should usually be recorded at:

A corporation sold 20 shares of $20 par value treasury stock for $40 per share. The treasury stock cost $30 per share to acquire. The entry to record the transaction would include a:

A prior period adjustment would be necessary when:

The payment of wages was debited to Retained Earnings. This error would cause:

Using the following accounts: Indicate the account(s)to be debited and credited to record the following transactions. -Sold treasury stock at a price below cost when there was not enough paid-in capital from treasury stock to absorb the difference between cost and selling price. Debit ________ & ________ & ________ Credit ________ & ________ & ________

A stock-split journal entry would include a:

A prior period adjustment for depreciation would affect what account in the stockholders' equity section?

A distribution to stockholders in the form of cash is called a:

If total stockholders' equity is $90,000 with 5,000 common shares outstanding, what is the book value per share?

Using the following accounts: Indicate the account(s)to be debited and credited to record the following transactions. -Sold treasury stock at a price below cost when there was sufficient paid-in capital from treasury stock to absorb the difference between cost and selling price. Debit ________ & ________ & ________ Credit ________ & ________ & ________

Changes in retained earnings can result from:

Changes in retained earnings result from effects of prior period adjustments, net income or loss, or dividends declared.

Farm and Supply reissued 100 shares of treasury stock at $20 that had been reacquired for $15 per share. What is the entry?

Market value is the price at which a share of stock is bought and sold.

Payment of a cash dividend causes:

When a stock dividend was declared above par the excess was ignored and only the par value was used. This error would cause: