Exam 13: Equity Financing

A company issued rights to its existing shareholders to purchase for par unissued shares of common stock with a par value of $10 per share.When the market value of the common stock was $12 per share,the rights were exercised.Common Stock should be credited at $10 per share and

If 35 percent of the recent dividend paid by Yankees Corporation was correctly considered to be a liquidating dividend,how would this distribution affect each of the following accounts? Additional Retained Paid-In Capital Earnings

The stockholders' equity section of Sliver Corporation's balance sheet at December 31,2014,was as follows: On January 2,2015,Sliver purchased and retired 100,000 shares of its stock for $1,800,000.Sliver records treasury stock using the par value method.Immediately after retirement of these 100,000 shares,the balances in the additional paid-in capital and retained earnings accounts should be Paid-In Capital Retained In Excess of Par Earnings

On July 31,2013,Rangers Corporation purchased 500,000 shares of Tigers Corporation.On December 31,2014,Rangers distributed 250,000 shares of Tigers stock as a dividend to Rangers' stockholders.This is an example of a

The accounts from the stockholders' equity section of the balance sheet of Bahia Honda Company showed the following at December 31,2013: Bahia Honda issued 475,000 shares of the $1 par value common stock on January 1,2013. The company also is authorized to issue 500,000 shares of $5 par value,6% preferred stock. During 2014,Bahia Honda had the following transactions: Prepare a statement of changes in stockholders' equity for 2014 using the information given above.

The Mailer Corporation had the following classes of stock outstanding as of December 31,2014: Common stock,$20 par value,20,000 shares outstanding Preferred stock,6 percent,$100 par value,cumulative,2,000 shares outstanding No dividends were paid on preferred stock for 2012 and 2013.On December 31,2014,a total cash dividend of $200,000 was declared.What are the amounts of dividends payable on both the common and preferred stock,respectively?

How would the declaration of a liquidating dividend by a corporation affect each of the following? Contributed Total Stock- Capital holders' Equity

A company issued rights to its existing shareholders to purchase,for $30 per share,unissued shares of $15 par value common stock.When the rights lapse,

A restriction of retained earnings is most likely to be required by

Weaver Corporation was organized on January 1,2013,at which date it issued 100,000 shares of $10 par common stock at $15 per share.During the period January 1,2013,through December 31,2015,Weaver reported net income of $450,000 and paid cash dividends of $230,000.On January 10,2015,Weaver purchased 6,000 shares of its common stock at $12 per share.On December 31,2015,Weaver sold 4,000 treasury shares at $8 per share.Weaver uses the cost method of accounting for treasury shares.What is Weaver's total stockholders' equity on December 31,2015?

On July 23,Amigo Company declared a cash dividend totaling $80,000.Stockholders were notified that $15,000 of this dividend represented a liquidating dividend.At the time,the balance in Paid-In Capital in Excess of Par was $113,000. Make the journal entries to record (1)the declaration and (2)the payment of this dividend.

Palm Beach Corporation has a stock option plan for its continuing employees that provides that each qualified employee may receive an option for a specified number of shares of the company's $1 par value stock.Employees must continue working for the company for three years to earn the grants,which may be exercised any time after the three years,at an option price of $10 per share.On January 1,2014,employees were granted options for 3,000 shares when the market price was $16 per share.The fair value of the options was $24 each.The expected annual forfeiture rate is 5%.The accounting period ends December 31.Palm Beach uses SFAS No.123R in accounting for these options.Assume that the estimated and actual forfeiture rates are equal. Required:

Gains and losses on the purchase and resale of treasury stock may be reflected only in

Indicate how each of the following transactions would be reflected in a statement of cash flows:

Which of the following is NOT one of the basic shareholders rights?

The use of equity reserves under international accounting standards