Exam 11: Reporting and Interpreting Stockholders Equity

Atkins Company had 20,000 shares of $5 par value common stock outstanding prior to declaring a 10% common stock dividend. The market value of the common stock on the declaration date was $11. Which of the following statements correctly describes the effect of the common stock dividend?

Which of the following statements about earnings per share (EPS) is correct?

RKJ Company has provided the following information: • 100,000 shares of $5 par value common stock are authorized • 70,000 shares have been issued • 65,000 shares are outstanding Which of the following statements is correct?

Shares of stock held as treasury stock do not have voting rights or the right to receive dividends.

Which of the following statements is true about a partnership?

On January 1, 2016, the stockholders' equity section of Gibbons Corporation's balance sheet reported the following: During 2016, the following selected transactions occurred (assume they occurred in the order given): Required: Prepare the stockholders' equity section of the balance sheet as of December 31, 2016.

A company declares a 40% large stock dividend when there were 4 million common shares outstanding with a $1 par value. The current market price is $20 per common share. Which of the following will be the effect of the stock dividend?

A company repurchased shares of its common stock for $19,000. The stock was initially issued for $12,000 and had a $5,000 par value. Which of the following statements correctly describes the effects of the repurchase of company's common stock shares?

The declaration by a corporation's board of directors of a cash dividend on common stock creates a liability on the declaration date.

Which of the following transactions does not result in an increase in stockholders' equity?

A company purchased 1,000 shares of treasury stock for $38,000 cash. The shares were initially issued for $24,000 and had a $9,000 par value. Which of the following statements incorrectly describes the effect of the treasury stock purchase?

Treasury stock shares are shares of stock that are:

CBA Company reported total stockholders' equity of $85,000 on its balance sheet dated December 31, 2016. During the year ended December 31, 2017, CBA reported net income of $10,000, declared and paid a cash dividend of $2,000, and issued additional common stock for $20,000. What is total stockholders' equity as of December 31, 2017?

Three dates that are significant for cash dividends are described in each part below. Part A: Name each of the described dates. Part B: Prepare the journal entry for each date. Assume a $25,000 cash dividend.

Total stockholders' equity of Grasse Company is not affected when a stockholder sells shares of Grasse Company stock to another stockholder.

Total stockholders' equity increases when treasury stock is sold for an amount less than its repurchase price.

Which of the following statements is not correct?

Date on which the dividend checks are written.

For the listed items below, identify the effects on cash flow from financing activities as increasing (I), decreasing (D), or (N) having no effect on financing cash flows:

Which of the following statements is false?