Exam 11: Stockholders Equity

A balance sheet of a sole proprietorship includes only the business assets and liabilities,not the personal assets of the owner.

Comprehensive income is the increase in net assets resulting from all transactions occurring during an accounting period except stockholders' investments and dividends.

A 15% stock dividend will increase the number of shares outstanding but the book value per share will decrease.

Assume that Milo Company's Stockholders' Equity category of the balance sheet appears as follows as of January 1,2017: Common stock, \ 15 par, 7,000 shares issued and outstanding \ 105,000 Additional paid-in capital—common 70,000 Retained earnings Total stockholders' equity Assume that Milo's common stock is selling at $35 per share on that date. Required What is the effect on the Stockholders' Equity section of Milo's balance sheet if the company issues a 3-for-1 stock split on January 2,2017?

Select the best answer from the list below to complete statements that follow. Authorized shares treasury stock book value per share issued shares stock dividend par value per share outstanding shares additional paid-in-capital market value per share stock split dividend payout ratio retained earnings -The amount received for each share of stock in excess of par value is __________.

Select the best answer from the list below to complete statements that follow. Authorized shares treasury stock book value per share issued shares stock dividend par value per share outstanding shares additional paid-in-capital market value per share stock split dividend payout ratio retained earnings -Stock issued by the firm,but then repurchased and not retired,is __________.

Comfort Shoes had the following items included in its accounting records.In the space provided,indicate whether each of the items listed is included in an account in the Stockholders' Equity section of the balance sheet.​ ​

When treasury stock is reissued and the cost is less than the reissue price,the difference increases additional paid-in capital.

Which of the following statements with regard to large stock dividends is true?

Select the best answer from the list below to complete statements that follow. Authorized shares treasury stock book value per share issued shares stock dividend par value per share outstanding shares additional paid-in-capital market value per share stock split dividend payout ratio retained earnings -Distribution of additional shares of stock and reduction of the par value of the stock is a __________.

If a company has both common and preferred shares outstanding and wishes to calculate book value per share,

When a company wishes to purchase and retire its own stock,the company must

As a result of a stock split,

On December 31,2017,Aire Dyne,Inc.reported common stock of $120,000,retained earnings of $60,000,and total stockholders' equity equal to $500,000.No unusual accounts appeared in the Stockholders' Equity section of its balance sheet.During the fiscal year ended December 31,2018,10,000 shares of stock were sold for $40,000,of which $10,000 represented additional paid-in capital.The company reported net income of $85,000 and declared and paid dividends of $50,000. A) What is the par value of the stock? B) What is the amount of the retained earnings at December 31,2018 ? C) Prepare a statement of retained earnings for Aire Dyne, Inc. for the year ended December 31,2018, in good form.

Dark Corp.began operations on March 1,2017.The corporate charter authorized issuance of 3,000 shares of $2 par value common stock.Dark sold all of the stock on March 1.On May 1,Dark repurchased 2,000 of the outstanding shares.On May 14,Dark sold 1,200 of the treasury shares.On June 1,Dark declared a 2-for-1 stock split.As a result of the split,what occurred?

In 2017,Dickens Company had a beginning balance in its Cash Dividend Payable account of $5,000 and an ending balance of $4,000.During 2017,the only dividends Dickens declared were $46,000 in cash to the common stockholders.How much cash was paid to the common stockholders?

The Stockholders' Equity section of Deer Lakes Manor's balance sheet on January 1,2017,appeared as follows: Common stock, \ 30 par, 20,000 shares issued and outstanding \ 600,000 Additional paid-in capital-common 240,000 Retained earnings 700,000 Total stockholders' equity \ 1,540,000 On March 1,2017,Deer Lakes reacquired 4,000 shares of common stock at $50 per share.All common shares were originally sold for $42 each.How much should be reported in the Treasury Stock account on the March 31,2017,balance sheet?

Use the incomplete Stockholders' Equity section of Box Company's balance sheet as of December 31,2017,to answer the following question. ? Common stock \ 7,100,000 shares authorized \ 700,000 Additional paid-in capital—common 160,000 Retained earnings ? Treasury stock ( 2,000 shares at cost) (16,000) Total stockholders' equity 974,000 How many shares of common stock are outstanding?

What is meant by the balance in the Retained Earnings account?

Assume that Wei Company's Stockholders' Equity category of the balance sheet appears as follows as of January 1,2017: Common stock, \ 15 par, 7,000 shares issued and outstanding \ 105,000 Additional paid-in capital-common 70,000 Retained earnings Total stockholders' equity Assume that Wei's common stock is selling at $35 per share on that date. Required 1.Assume that on January 2,2017,Wei declares a 10% stock dividend to common stockholders to be distributed on April 1,2017.Determine the impact on the accounting equation of the journal entry to be recorded by Wei. 2.Instead of (1)above,assume that on January 2,2017,Wei declares a 100% stock dividend to be distributed on April 1,2017.Determine the impact on the accounting equation of the journal entry to be recorded by Wei. 3.Determine the impact on the accounting equation of the entry that would be made when the stock in (2)above is actually distributed.