Exam 13: Corporations

Errors are corrected by adjusting the beginning balance in the Retained Earnings account in the period the error is discovered.

The par value of stock is ________.

Ballpark has 61,000 shares of $16.00 par common stock outstanding.Ballpark announces a stock split of 4-for-1.What is the effect of the split?

Higher start-up costs and expensive government regulations are disadvantages of corporations.

Depending on its size,a stock dividend may cause the company's market price to rise because of the increased supply of stock.

Scotland Corporation had net income for 2018 of $80,000.Scotland had 13,000 shares of common stock outstanding at the beginning of the year and 24,000 shares of common stock outstanding at the end of the year.There were 12,000 shares of preferred stock outstanding all year.During 2018,Scotland declared and paid preferred dividends of $21,000.What is Scotland's earnings per share? (Round the answer to two decimal places.)

When a company issues stock at an amount greater than the par value,a gain is recorded for the difference between the issue price and the par value.

Stock dividends are declared by the ________.

Gains and losses on the sale of plant assets are reported as discontinued operations.

Outstanding stock represents shares of stock that ________.

The declaration of a stock dividend creates a liability for the corporation.

Which of the following occurs when a 2-for-1 stock split is declared?

Treasury stock is a contra equity account.

Treasury stock is recorded at cost,without reference to par value.

When a stockholder contributes land to a corporation in exchange for stock,________.

Comment on how an investor would use each of the following ratios to evaluate business performance. Ratio Comment Price/Earnings Ratio Rate of Return on Common Stockholders' Equity

The declaration date is the date the corporation prepares a journal entry to record that stockholders will receive dividend checks.

A company may purchase treasury stock to support the company's stock price.

Mission Corporation reported the following equity section on its current balance sheet.The common stock is currently selling for $18.00 per share. Common Stock, \ 5 par, 194,000 shares authorized, 143,000 shares issued and outstanding \ 715,000 Paid-In Capital in Excess of Par-Common 130,000 Retained Earnings 301,000 Total Stockholders' Equity \ 1,146,000 After the declaration and distribution of a 12% stock dividend,what is the total number of common shares issued?

Reunion Corporation provides the following information. March 31,2018 March 31, 2019 Net Income \ 358,000 \ 425,500 Preferred Dividends 0 0 Total Stockholders' Equity \ 4,380,000 \ 5,132,000 Stockholders' Equity attributable to Preferred Stock 0 0 Number of Common Shares Outstanding 294,464 195,168 Based on the information provided above,compute the earnings per share of Reunion Corporation as of March 31,2019.(Round any intermediate calculations and your final answer to the nearest cent.)