Exam 11: Stockholders Equity

[APPENDIX] Which of the following statements regarding partnerships is true?

In 2012,Taggert Company had a beginning balance in its Cash Dividend Payable account of $5,000 and an ending balance of $4,000.During 2012,the only dividends Taggert declared were $46,000 in cash to the common stockholders.How much cash was paid to the common stockholders?

Walton Corporation shows the following in the stockholders' equity section of its balance sheet: The stated value of its common stock is $0.50 and the total balance in the common stock account is $37,500.Also noted is that 5,000 shares are currently designated as treasury stock.The number of shares outstanding is

Distribution of additional shares of stock and reduction of the par value of the stock is ______________________________.

A 15% stock dividend will increase the number of shares outstanding but the book value per share will decrease.

Name two different examples of items that can be received (in addition to cash)in exchange for issuing stock.Describe how the value of each item affects additional paid-in capital.

Which of the following is false regarding the issue of stock versus the issue of bonds to raise capital?

Heather Valley Company has the following amounts in the Stockholders' Equity category of the balance sheet at December 31,2014: Preferred Stock,$100 par,8%,noncumulative (liquidation value of $120 per share)$100,000 Paid-In Capital-Preferred 60,000 Common Stock,$5 par 450,000 Paid-In Capital-Common 50,000 Retained Earnings 225,000 Required: Determine the book value per share of the Heather Valley Company stock.

Explain the difference between authorized,issued,and outstanding shares.

Manson World reported the following: Common stock,$1 par,200,000 shares authorized,100,000 shares issued and outstanding What is the effect of a 2-for-1 stock split if the market value of the common stock is $20 per share when the stock split is declared?

Which of the following is true?

A _____________________ allows preferred stockholders to share on a percentage basis in the distribution of an abnormally large dividend.

Chad Darrow,CFO of your company is considering constructing a deal with Extreme Industries,whereby stock is issued in exchange for an asset (custom extrusion equipment valued at $400,000 by an outside appraiser).The stock to be exchanged is a new class of preferred stock that has not yet been traded in the open market.He has asked that you draft a memo to Marc Lyon,CEO about the valuation of the asset to be used in the exchange.In your memo address the reporting amount for the asset and how fair market value could be determined.

Which of the following transactions has an effect on the statement of cash flows?

On March 31,2013,Outdoor Closets,Inc.had common stock of $230,000,retained earnings of $65,000,and additional paid-in capital--common of $540,000.During the fiscal year ended March 31,2014,500 shares of stock were sold for $60,000,of which $40,000 represented additional paid-in capital.The company reported net income of $140,000 and declared and paid dividends of $80,000.In good form,prepare the financial statement that shows all of the changes in the stockholders' equity accounts.

If a company issues $5 par value common stock,

[APPENDIX] Debbie and Alex formed a new partnership.The partnership agreement specified that income should be allocated in a 2-to-1 ratio,with Debbie receiving the larger portion.If revenue for the first year was $90,000 and expenses were $60,000,how much would be allocated to each partner?

As a result of a stock split,

The Stockholders' Equity section of the balance sheet of Sea Turtle Company reveals the following information: There have been two issues of stock since the corporation began business.The average issue price per share of stock was

Which of the following is true?