Exam 11: Reporting and Analyzing Equity

A corporation had stockholders' equity on January 1 as follows: Common Stock, $1 par value, 1,500,000 shares authorized, 600,000 shares issued; Paid-in Capital in Excess of Par Value, Common Stock, $1,100,000; Retained Earnings, $2,300,000. Prepare journal entries to record the following transactions:

Rhoads Corporation is authorized to issue 250,000 shares of $50 par, 10%, noncumulative, nonparticipating preferred stock and 5,000,000 shares of no-par common stock. Prepare journal entries to record the following selected transactions that occurred during this year:

A company reported the following stockholders' equity on January 1 of the current year: Prepare journal entries for the following selected transactions related to this company's stock during the current year:

The dividend yield is computed by dividing:

The right of common shareholders to purchase their proportional share of any common stock later issued by the corporation is called a:

On January 10, Mood Corporation purchased 15,000 shares of its own common stock at $17.50 per share. On August 4, a total of 2,000 treasury shares were sold at $19.00 per share. These are the only treasury stock transactions ever made by the corporation. Prepare the journal entries required on January 10 and August 4.

A stock dividend does not reduce a corporation's assets or its stockholders' equity.

Stockholders' equity consists of paid-in capital and retained earnings.

Eastline Corporation had 10,000 shares of $10 par value common stock outstanding when the board of directors declared a stock dividend of 3,000 shares. At the time of the stock dividend, the market value per share was $12. The entry to record this dividend is:

Explain stock options and their effect on the company.

The number of shares that a corporation's charter allows it to sell is referred to as:

Comfort Mattresses, Inc. sold 26,000 shares of its $1 par value common stock at a cash price of $12 per share. The entry to record this transaction would be:

West Company declared a $0.50 per share cash dividend. The company has 190,000 shares issued, and 10,000 shares in treasury stock. The journal entry to record the dividend declaration is:

Given the following information about a corporation's current year activities, compute the retained earnings for the current year.

West Company declared a $0.50 per share cash dividend. The company has 190,000 shares issued, and 10,000 shares in treasury stock. The journal entry to record the payment of the dividend is:

In the current year, Jacksonville Company has discovered a material prior-period error in its calculation of income. The company had incorrectly debited an asset costing $120,000 to an expense account. The related income tax expense was $42,000. If beginning Retained Earnings in the current period is $3,703,000, net income is $1,011,000 and dividends declared are $267,000, ending Retained Earnings equals:

Companies report the cost of stock options in the:

Alto Company issued 7% preferred stock with a $100 par value. This means that:

What is a stock split? How is a stock split different from a stock dividend?

___________________________ are corrections of material errors in prior period financial statements reported in the Statement of Retained Earnings.