Exam 13: Corporations

Revival Corporation provides the following information. Based on the information provided above,compute the earnings per share of Revival Corporation as of March 31,2017.(Round any intermediate calculations and your final answer to the nearest cent. )

Which of the following occurs when a cash dividend is declared?

Lerner had net income for 2016 of $105,000.Lerner had 39,000 shares of common stock outstanding at the beginning of the year and 48,000 shares of common stock outstanding at the end of the year.There were 5,000 shares of preferred stock outstanding all year.During 2016,Lerner declared and paid preferred dividends of $29,000.On December 31,2106,the market price of Lerner's common stock is $35 per share and the market price of its preferred stock is $63 per share.What is Lerner's price/earnings ratio? (Round any intermediate calculations and your final answer to the nearest cent. )

Stock dividends have no effect on total stockholders' equity.

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

On November 1,2017,President,Inc.declared a dividend of $3.00 per share.President,Inc.has 10,000 shares of common stock outstanding and 20,000 of preferred stock.The date of record is November 15,and the payment date is November 30,2017.Regarding the date of record,which of the following statements is true?

Which of the following is true of a corporation?

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

No journal entry is made on the dividend declaration date.

Lafayette,Inc.was incorporated on January 1,2014.Lafayette issued 5,000 shares of common stock and 700 shares of preferred stock on that date.The preferred stock is cumulative,$100 par,with an 10% dividend rate.Lafayette has not paid any dividends yet.In 2017,Lafayette had its first profitable year,and on November 1,2017,Lafayette declared a total dividend of $40,000.What is the total amount that will be paid to common stockholders?

A corporation reported the following equity section on its current balance sheet.The common stock is currently selling for $22.00 per share. Which of the following would be included in the entry to record the distribution of a 17% stock dividend?

On November 1,2017,Roosevelt,Inc.declared a dividend of $3.00 per share.Roosevelt,Inc.has 20,000 shares of common stock outstanding and no preferred stock.Prepare the journal entry to record this transaction.

Washington Enterprises had net income for 2016 of $109,000.Washington had 33,000 shares of common stock outstanding at the beginning of the year and 48,000 shares of common stock outstanding at the end of the year.There were 8,000 shares of preferred stock outstanding all year.During 2016,Washington declared and paid preferred dividends of $26,000.What is Washington's earnings per share? (Round the answer to two decimal places. )

A company originally issued 10,000 shares of $5 par value common stock at $12 per share.The board of directors declares a 16% stock dividend when the market price of the stock is $21 a share.Which of the following is included in the entry to record the declaration of a stock dividend?

A higher price/earnings ratio signifies a higher return on investment.

Stockholders of a corporation are not personally liable for the corporation's debt.

The following information is from the December 31,2017 balance sheet of Jackson Corporation. What is the average issue price of the preferred stock shares? (Round answers to the nearest dollar. )

Landess Corporation currently has 132,000 shares outstanding of $5 par value common stock.The stock was originally issued for $20 per share.On March 15,the board of directors declares a 10% stock dividend when the stock is selling for $26 per share.Which of the following is the correct journal entry to record this transaction? (Do not round intermediate calculations. )

Moretown,Inc.had the following transactions in 2017,its first year of operations: • Issued 32,000 shares of common stock.Stock has par value of $1.00 per share and was issued at $28.00 per share. • Earned net income of $80,000. • Paid no dividends. At the end of 2017,what is total stockholders' equity?

If treasury shares are sold for less than their cost,the difference is recorded as a loss.