Exam 11: Stockholders Equity

None of the Stockholders' Equity accounts are affected by the stock split.

Explain the difference between IFRS and U.S.GAAP presentation for bonds that can be converted by investors into stock.

A drawing account is sometimes referred to as a __________.

Stock dividends involve the issuance of additional shares of stock.

Which of the following is reported as a financing activity on the statement of cash flows?

The statement of stockholders' equity for Jutras Corporation shows an increase in the Common Stock account of $8,000,an increase in Additional Paid-In Capital-Common in the amount of $22,000,and an increase in Retained Earnings of $50,000.If the stock has a par value of $3 and dividends of $10,000 were declared and paid during the year,what is the amount of net income for the year?

Anole Company Anole Company was incorporated as a new business on January 1, 2017. The company is authorized to issue 20,000 shares of $5 par value common stock and 10,000 shares of 6%, $10 par value, cumulative, participating preferred stock. On January 1, 2017, the company issued 8,000 shares of common stock for $15 per share and 2,000 shares of preferred stock for $30 per share. Net income for the year ended December 31, 2017, was $375,000. -Refer to the information about Anole Company. The amount of Anole's total contributed capital at December 31,2017,is

The Stockholders' Equity section of Twilight Time's balance sheet on January 1,2017,appeared as follows: Common stock, \ 2 par, 2,000 shares issued and outstanding \ 4,000 Additional paid-in capital-common 1,600 Retained earnings 5,400 Total stockholders' equity \ 11,000 On March 1,2017,Twilight reacquired 800 shares of common stock at $10 per share.Twilight sold 400 of the treasury shares on November 15 for $12 per share.The entry to record the sale on November 15 would show a(n)

Why is stockholders' equity viewed as a residual amount?

Lear Flower Shop presented the Stockholders' Equity section of its balance sheet on January 1, 2017, as follows: Common stock, \ 2,10,000 shares issued and outstanding \ 20,000 Additional paid-in capital—common 40,000 Retained earnings Total stockhol ders' equity All common shares were originally sold for $6 each.The following transactions occurred during 2017: -Reacquired 3,000 shares of common stock at $15 per share on February 16. -Sold 2,000 shares of treasury stock at $20 per share on June 1. $\text { Part 1. Show the effects of the transactions on the accounting equation. }$ Part 2. How many shares of stock are outstanding at June 1 , immediately after the sale of the 2,000 shares of treasury stock?

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 -Assuming no preferred stock exists,total stockholders' equity divided by the number of shares of common stock outstanding is equal to the __________.

Park Avenue Toys reported the following information at December 31,2017: Common stock \ 3 par, 10,000 shares authorized \ 30,000 Additional paid-in capital-common 80,000 Retained earnings Total contributed capital and retained earnings \ 150,000 Less: Treasury stock ( 5,000 common shares at cost) Total stockhol ders' equity Answer the following questions for Park Avenue Toys. 1. Would the book value per share increase,decrease,or remain the same,if the company declared a 3-for-1 stock split on December 31,2017? Explain. 2. If cash dividends were declared on January 10,2018 , at $\$ 1$ per share, by how much would retained earnings decrease as a result? (Assume that the 3 -for-1 stock split occurred.)

On March 31,2017,Outdoor Closets,Inc.had common stock of $230,000,retained earnings of $65,000,and additional paid-in capital-common of $540,000.During the fiscal year ended March 31,2018,500 shares of stock were sold for $60,000,of which $40,000 represented additional paid-in capital.The company reported net income of $140,000 and declared and paid dividends of $80,000.In good form,prepare the financial statement that shows all of the changes in the stockholders' equity accounts.

Heather Valley Company has the following amounts in the Stockholders' Equity category of the balance sheet at December 31,2017: Preferred stock \ 100 par, 8\% , noncumul ative (liquidation value of \ 100,000 \ 120 per share) Paid-in capital?preferred 60,000 Common stock, \ 5 par 450,000 Paid-in capital—common 50,000 Retained earnings 225,000 Required Determine the book value per share of the Heather Valley Company stock.

At December 31,2017,Corning Company has the following: Common stock,$10 par,10,000 shares authorized,9,000 issued,8,000 outstanding Preferred stock,$100 par,8%,cumulative,1,000 shares authorized,issued,and outstanding The company did not pay any dividend during 2016 or 2015. ​ Required Compute the amount of dividend to be received by the common and preferred stockholders in 2017 if the company declared a dividend of $24,000. ​

Which of the following transactions has an effect on the statement of cash flows?

The following Stockholders' Equity section of Petal Pusher Company's balance sheet appeared at December 31,2017. Answer the following: Common stock, \ 1 par value, 200,000 shares issued \ 200,000 Additional paid-in capital—common 800,000 Retained earnings Total stockholders' equity ? A) $\text { Has the company been profitable since its inception? How do you know? }$ B) $\text {What does the balance in retained earnings represent? }$

Readers of the financial pages of the daily newspaper noticed the following information with regard to the Connor Company stock: Daily high,45.50;Daily low,42.25;Last,43.50;Change,+0.75.This tells readers that the

Mendes Charters reported the following information at December 31,2017: Mendes' total contributed capital is Preferred stock \ 100 par, 500 shares authorized, and outstanding; cumulative; nonp articipating; call able at par value \ 50,000 Common stock \ 12 par, 50,000 shares authorized and outstanding 600,000 Additional paid-in capital—common 25,000 Retzined earnings 825,000

The Stockholders' Equity section of the balance sheet for High Five Design Company appeared as follows before its recent stock dividend: Common stock, \ 3 par, 100,000 shares issued and outstanding \ 300,000 Additional paid-in capital-Common 150,000 Retained earnings Total stockholders' equity High Five declared a 10% stock dividend when the market price per share was $7.In the space provided,write in the amounts of each of the components of the Stockholders' Equity section,after the stock dividend was distributed. Common stock underline Additional paid-in capital—common stock underline Retained earnings underline