Exam 11: Stockholders Equity

Rock City Company began business on January 1,2012.The corporate charter authorized issuance of 500 shares of $1 par value common stock and 400 shares of $4 par value,3% cumulative preferred stock.What is the maximum amount that can be reported on the balance sheet for Common Stock and Preferred Stock,respectively,if all of the stock is issued? Common Stock Preferred Stock

The number of shares issued less the number of shares held as treasury stock are ______________________________.

Garden Company began business on January 1,2012.The corporate charter authorized issuance of 5,000 shares of $1 par value common stock,and 4,000 shares of $8 par value,6% cumulative preferred stock.None of the preferred shares were issued.On July 1,Garden issued 1,000 shares of common stock in exchange for two years rent on a retail location.The cash rental price is $2,400 per month and the rental period begins on July 1.The correct entry to record the July 1 transaction will

The Stockholders' Equity section of Gretchen's Bistro's balance sheet on January 1,2012,appeared as follows: On March 1,2012,Gretchen's Bistro reacquired 800 shares of common stock at $12 per share.On April 6,Gretchen's Bistro resold 600 shares of treasury stock at $20 per share.How many shares of stock are outstanding at March 31,and April 30,respectively?

Playlinda Surf Shop provided the following information from its 2012 financial statements: In addition,the stockholders' equity section of the balance sheet showed: The common stock had a year-end market price of $24.

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

Watson Company has 5,000 shares of $5 par,3% preferred stock outstanding,and 25,000 shares of $2 par common stock outstanding.The preferred stock is cumulative and no dividends have been paid for the past two years.If the company wishes to distribute $2 per share to the common stockholders,what is the total amount of dividends that must be paid in the current year?

The amount received for each share of stock in excess of par value is ______________________.

Book value indicates the rights that stockholders have,based on recorded values,to the net assets in the event of liquidation.

The payment of dividends is a financing activity.

[APPENDIX] Derek and Kent are partners.At the beginning of the current year,Derek's capital account is $30,000,while Kent's is $50,000.The partners decided to allocate income with 10% interest on capital balances at the beginning of the period and divide the balance equally.Net income for the current year,2012,is $80,000.Each partner withdrew $15,000 for personal use during the year.Determine the amount of income that each partner will be allocated.

Park Avenue Toys reported the following information at December 31,2013: Answer the following questions for Park Avenue Toys.

The stockholders' equity section of Augusta,Inc.is as follows: The market price of the stock on December 31,2012,was $8 per share.Answer the following independent questions:

None of the Stockholders' Equity accounts are affected by the split.

Reddy Parts reported the following information at December 31,2012: Answer the following questions for Reddy Parts by placing the correct response in the space provided.

All issued stock is outstanding.

Cash dividends become a liability to a corporation on the date of record.

Explain the difference between IFRS and U.S.GAAP presentation for bonds that can be converted by investors into stock.

Book value is a measure of the market value of the stock.

Manatee Company Manatee Company was incorporated as a new business on January 1,2012.The company is authorized to issue 20,000 shares of $5 par value common stock and 10,000 shares of 6%,$10 par value,cumulative,participating preferred stock.On January 1,2012,the company issued 8,000 shares of common stock for $15 per share and 2,000 shares of preferred stock for $30 per share.Net income for the year ended December 31,2012,was $375,000. Refer to the information about Manatee Company. The number of Manatee's unissued shares of common stock at December 31,2012,is