Exam 12: Income and Changes in Retained Earnings

Refer to the information above. If Caesar Corporation had reacquired 7,000 shares of treasury stock early in 2009, then some treasury stock must have been sold during 2009 for:

A liquidating dividend:

A liquidating dividend:

What was the average issue price per share of preferred stock?

Prior period adjustments appear in the statement of retained earnings and in the income statement for the current year.

Dividends are first recorded and retained earnings are reduced on:

As a result of a 5% stock dividend:

The common stock of Securetech Corporation consistently sells at a market price of 20 times earnings . What would be the most likely effect of a 10 cent increase in Securetech's basic EPS?

Designs, Inc. had 4,000 shares of $7, $100 par preferred stock and 50,000 shares of common stock outstanding throughout 2009. During 2009, Designs declared a dividend of $7 per share on its common stock. Compute earnings per share for 2009 if Designs' income statement showed net income of $630,000.

When a corporation presents both "basic" and "diluted" earnings per share, basic earnings per share will be the smaller of the two figures.

The amount of earnings per share is usually computed:

The expropriation (seizure of) of a multinational company's assets by a government is an example of a discontinued operation item.

National Corporation was organized on January 1 and issued 600,000 shares of common stock on that date. On July 1, an additional 200,000 shares were issued for cash. Net income for the year was $3,675,000. Net earnings per share amounted to:

At the beginning of the current year, Wilson Corporation had 200,000 shares of $1 par common stock outstanding and had retained earnings of $4,800,000. During the year, the company earned $1,675,000 and paid a year-end cash dividend of $3 per share. What was Wilson Corporation's retained earnings at the end of the year?

Comprehensive income differs from net income in that it includes events that are recognized but not realized.

At the beginning of the current year, Elite Corporation had 200,000 shares of $1 par common stock outstanding and had retained earnings of $4,800,000. During the year, the company earned $1,675,000, declared a 10% stock dividend when the price of stock was $28 per share, and paid a year-end cash dividend of $3 per share. (The cash dividend was paid after the stock dividend had been distributed.) What was Elite Corporation's retained earnings at the end of the year?

If Xanadu Fashions had reacquired 35,000 shares of treasury stock early in 2010, compute the price per share for which the reissued treasury stock was sold.

Refer to the information above. How many shares of common stock are outstanding?

On January 1, 2010, Edward Corporation had 10,000 shares of $6 par value common stock and 10,000 shares of 8%, $100 par value convertible preferred stock outstanding. The preferred shares carried a 3 for 1 conversion privilege. On October 1, 2010, all of the preferred shares were converted to common. What number of shares must Edward use in computing basic earnings per share at December 31, 2010?

If Global Publishing had reacquired 16,000 shares of treasury stock early in 2009, then some treasury stock must have been sold during 2009 for: