Exam 12: Stockholders Equity

If a corporation issues par value common stock and the proceeds are less than par value,the Common Stock account is credited for the par value.

Use the following information to answer the question below. The following accounts appear in the ledger of Pepper Corporation on December 31,20x5 A balance sheet prepared on December 31,20x5,would report total stockholders' equity of

When the date of declaration and the payment date occur in the same period,the amount of dividends shown on the statement of stockholders' equity and on the statement of cash flows will be equal.

In the rare instance when a par value stock is issued at a cash price below par,the excess of the par value over the amount of cash received should be

On July 1,20x5,Blaylock Corporation had 40,000 shares of its $100 par value common stock outstanding.On July 2,20x5,Blaylock declared a 15 percent stock dividend to be distributed on August 6,20x5,to shareholders of record on July 16,20x5.What amount of retained earnings should be transferred to contributed capital because of this dividend?

Limited liability can be viewed as both an advantage and a disadvantage.

The following information relates to the number of common shares of the Jackson Corporation: 60,000 Authorized shares;25,000 Unissued shares;3,500 Treasury shares Calculate the number of outstanding shares from the information given.Show your calculations.

A stock split results in a transfer of the market value of the stock from Retained Earnings to Contributed Capital.

An advantage of the corporate form is the separation of ownership and control.

A company purchases 600 shares of its $100 par value common stock at $110 per share.It then reissues 100 shares at $114 per share.The entry upon reissue of the stock is

A 2-for-1 stock split will have the same effect on the number of shares outstanding as a 200 percent stock dividend.

Firehawk Corporation had net income of $560,000 in 20x5 and paid dividends of $440,000 on 200,000 shares of outstanding common stock.Total stockholders' equity at the end of 20x5 was $2,060,000 and the market price for each share of Firehawk's stock was $58 throughout 20x5. -Based on this information,what is the price/earnings ratio for Firehawk's stock?

A statement of stockholders' equity can take the place of a statement of retained earnings.

On January 1,20x5,Dove Valley Corporation had 100,000 shares of $10 par value common stock issued and outstanding.All 100,000 shares had been issued in a prior period at $30 per share.On February 1,20x5,Dove Valley purchased 4,000 shares of treasury stock for $36 per share and later sold the treasury shares for $40 per share on March 2,20x5. -The entry to record the purchase of the treasury shares on February 1,20x5,is:

Which of the following is not true about a 35 percent stock dividend?

If only common stock is outstanding,total stockholders' equity divided by the number of shares of common stock outstanding is called the