Exam 13: Accounting for Corporations

Mariposa Corporation had a Retained Earnings balance on January 1,20x4,of $936,000; declared cash dividends during 20x4 in the amount of $159,900,of which $39,000 were not paid until 20x5; and reported an ending balance of Retained Earnings of $1,326,000.Based on these facts alone,net income for 20x4 for Mariposa Corporation must have been

The entry to record the declaration of a cash dividend will

Willow Corporation has retained earnings of $320,000.It has 5,000 shares of 6 percent,$100 par value preferred stock outstanding that is callable at 102.The preferred stock is cumulative,and one year of dividends is in arrears.It also has 10,000 shares of $50 par value common stock outstanding.Assume all stock is issued at par.The book value of each share of common stock is

A corporation's board of directors may influence dividend policies,but the company's senior management has sole authority to declare dividends.

The stockholders' equity in a corporation consists of capital contributed by stockholders and retained earnings.

Use the following information to answer the question below. The following accounts appear in the ledger of Pepper Corporation on December 31,20x5 A balance sheet prepared on December 31,20x5 ,would report total stockholders' equity of

Start-up and organization costs

Use the following information to obtain the ratios requested below.Where necessary,carry answers to one decimal place. Dividends per share: $1.14 Market price per share: $54 Net income: $118,000 Stockholders' equity,beginning of year: $500,000 Stockholders' equity,end of year: $530,000 Earnings per share: $1.75 a.Dividends yield = _____________% b.Return on equity = _____________% c.Price/earnings (P/E)ratio = __________ times

The par value of the common stock represents the

Par value is the minimum cushion of capital established for the protection of

a.Indicate on the blanks below the effect (I = increase,D = decrease,NE = no effect)of the entry to record the declaration of a common stock dividend on each of the items listed. b.Indicate on the blanks below the effect (I = increase,D = decrease,NE = no effect)of the entry to record the distribution of a (previously declared and recorded)common stock dividend on each of the items listed.

The information that follows pertains to stockholders' equity data of the Beagle Corporation on December 31,20x5.Compute the amount of each item indicated by a letter in the listing below.Where necessary,carry answers to two decimal place.

A statement of stockholders' equity can take the place of a statement of retained earnings.

A stock dividend increases the total amount of stockholders' equity.

A disadvantage of the corporate form of business is

Dividends in arrears are disclosed as liabilities of a corporation.

The purchase of treasury stock will result in

Cielo Corporation had net income of $740,000 in 20x4 and $830,000 in 20x5.Total stockholders' equity at the end of 20x4 was $1,250,000 and total stockholders' equity at the end of 20x5 was $1,500,000.Cielo's total assets at the end of 20x4 were $2,210,000 and its total assets at the end of 20x5 were $2,860,000.Based on this information,what is Cielo's return on equity for 20x5?

Compensation expense related to employee stock options is a tax-deductible expense for the corporation.

Which of the following statements is not true about a 2-for-1 stock split?