Exam 18: Shareholders Equity

Beagle Corporation has 20,000 shares of $10 par common stock outstanding and 10,000 shares of $100 par,6% cumulative,nonparticipating preferred stock outstanding.Dividends have not been paid for the past two years.This year,a $300,000 dividend will be paid.What are the dividends per share payable to preferred and common,respectively?

Cal Cookie Company (CCC)has 100 million shares of $1 par common stock authorized.The transactions below caused changes in CCC's outstanding shares. January 4,2016: Repurchased and retired 1 million shares at $8 per share. June 25,2016: Repurchased and retired 2 million shares at $2 per share. Prior to the transactions,CCC's shareholders' equity included the following: Required: Record entries for the above transactions.

Use the following to answer questions The following partial information is taken from the comparative balance sheet of Levi Corporation: -What was the average price (rounded to the nearest dollar)of the additional shares issued by Levi in 2016?

Tim Howard Gloves issued 4.75% bonds with a face amount of $24 million,together with 4 million shares of its $1 par value common stock,for a combined cash amount of $44 million.The market value of Howard's stock cannot be determined.The bonds would have sold for $18 million if issued separately.For this transaction,Howard should record paid-in capital-excess of par in the amount of:

Investors should be wary of stock buybacks during down times because the resulting decrease in shares and increase in earnings per share can be used to mask a slowdown in earnings growth.

Some preferred stock is cumulative while other preferred stock is noncumulative.What does this mean?

In 2016,Southwestern Corporation completed the treasury stock transactions listed below. February 2: Reacquired 70,000 shares at $12. March 17: Sold 20,000 shares at $14. May 17: Sold 25,000 shares at $8. Southwestern had issued 100,000 shares of its $1 par common stock for $10 several months ago. Required: Prepare the journal entries to record the above transactions using the cost method.

A small stock dividend is defined as one that is:

Gabriel Company views share buybacks as treasury stock.In its first treasury stock transaction,Gabriel purchased treasury stock for more than the price at which the stock was originally issued.What is the effect of the purchase of the treasury stock on each of the following?

Coy,Inc. ,initially issued 200,000 shares of $1 par value stock for $1,000,000 in 2014.In 2015,the company repurchased 20,000 shares for $200,000.In 2016,10,000 of the repurchased shares were resold for $160,000.In its balance sheet dated December 31,2016,Coy,Inc.'s treasury stock account shows a balance of:

Roberto Corporation was organized on January 1,2016.The firm was authorized to issue 100,000 shares of $5 par common stock.During 2016,Roberto had the following transactions relating to shareholders' equity: Issued 10,000 shares of common stock at $7 per share. Issued 20,000 shares of common stock at $8 per share. Reported a net income of $100,000. Paid dividends of $50,000. Purchased 3,000 shares of treasury stock at $10 (part of the 20,000 shares issued at $8). What is total shareholders' equity at the end of 2016?

Renaldo Cross Company views share buybacks as treasury stock.Renaldo repurchased shares and then later sold the shares at more than their acquisition price.What is the effect of the sale of the treasury stock on each of the following?

A statement of comprehensive income does not include:

On October 1,2016,Chief Corporation declared and issued a 10% stock dividend.Before this date,Chief had 80,000 shares of $5 par common stock outstanding.The market value of Chief Corporation on the date of declaration was $10 per share.As a result of this dividend,Chief's retained earnings will:

The par value of shares issued is normally recorded in the:

Use the following to answer questions The following information comes from the 2016 Annual Report to stockholders of Composition Inc.(in thousands): From the Statement of Changes in Stockholders' Equity: From the Statement of Cash Flows: Cash flows from financing activities: -What was the average exercise price per share of stock issued under option plans in 2016?

When more than one security is sold for a single price and the total selling price is not equal to the sum of the market prices,the cash received is allocated between the securities based on:

The corporate charter of Llama Co.authorized the issuance of 10 million,$1 par common shares.During 2016,its first year of operations,Llama had the following transactions: What amount should Llama report as additional paid-in capital in its December 31,2016,balance sheet?

Beasley Crossing prepares its financial statements in accordance with International Financial Reporting Standards (IFRS).The company issued shares of the company's Class B stock.Beasley Crossing should report the stock in the company's statement of financial position

The shareholders' equity of Nick Co.includes the items shown below.The board of directors of Nick declared cash dividends of $4 million,$8 million,and $50 million in each of its first 3 years of operation: 2014,2015,and 2016,respectively. Common stock,$1 par,50,000,000 shares outstanding Preferred stock,6%,$100 par,1,000,000 shares outstanding Required: Determine the amount of dividends per share on preferred and common stock for each of the three years.The preferred stock is noncumulative and nonparticipating.