Exam 11: Stockholders Equity

The payment of dividends is a financing activity.

Port,Inc.paid a cash dividend on January 2 that had been declared prior to the end of its fiscal year.The entry to pay the dividend will

Prairie Charters reported the following information at December 31,2017: Common stock, \ 1 par, 500,000 shares authorized, 100,000 shares issued \ 100,000 Additional paid-in capital—common 25,000 Retained earnings 75,000 Total stockholders' equity \ 200,000 The average recorded value per share of common stock at December 31,2017,is

Watson Company has 5,000 shares of $5 par,3% preferred stock outstanding and 25,000 shares of $2 par common stock outstanding.The preferred stock is cumulative,and no dividends have been paid for the past two years.If the company wishes to distribute $2 per share to the common stockholders,what is the total amount of dividends that must be paid in the current year?

Ari's Cafe began operations on March 1,2017.The corporate charter authorized the issuance of 3,000 shares of $2 par value common stock and 1,000 shares of $3 par value,8% cumulative preferred stock.The company's fiscal year ends on February 28.Ari's sold 500 shares of common stock at $6 per share on April 1.What impact does the entry to record the April 1 transaction have on total stockholders' equity?

Which of the following should be considered when a company decides to declare a cash dividend on common stock?

Use the incomplete Stockholders' Equity section of Wilmerding Company's balance sheet as of December 31,2017,to answer the following question. ? Common stock \ 7 ar, 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 What is the amount of Wilmerding's retained earnings?

The participating feature of stock allows stockholders to sell stock back to the company.

A company issued 4,000 shares of $5 par common stock for $30 per share.The company purchased 1,200 shares as treasury stock at $32 per share.Later,the company reissued 400 shares of the treasury stock at $34 per share.Which of the following is true?

Which of the following is true concerning a sole proprietorship?

Which of the following 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 -Net income that has been earned by the corporation but not paid out as dividends is called __________.

Winslow Corporation reported the following in the Stockholders' Equity section of its balance sheet at December 31,2017: How many shares of stock are issued Common stock, \ 1 stated value \ 10,000 Additional paid-in capital-common 40,000 Retained earnings Total contributed capital and retained earnings \ 75,000 Less: Treasury stock (at cost \ 20 per share) Total stockholders' equity

When treasury stock is resold for an amount less than its cost,the difference between the sales price and the cost is deducted from the Additional Paid-In Capital-Treasury Stock account or the Retained Earnings account (if the Additional Paid-In Capital-Treasury Stock account does not exist).

The primary reason for a stock split is to

What is the effect of a stock dividend on stockholders' equity?

Which of the following statements is true with regard to contributed capital?

If a company issues $5 par value common stock,

When a company declares a stock dividend,which of the following occurs?

Marvin's Shrimp Restaurant incorporated as a new business on January 1,2017.The company is authorized to issue 40,000 shares of $1 par value common stock and 10,000 shares of 4%,$5 par value,cumulative,participating preferred stock.On January 1,2017,the company issued 15,000 shares of common stock for $8 per share.Net income for the year ended December 31,2017,was $115,000.Cash dividends in the amount of $30,000 were declared,but only $25,000 were paid as of year-end.Prepare the Stockholders' Equity section of the balance sheet for Marvin's Shrimp Restaurant at December 31,2017.