Question 1

Hawks,Inc.has 60,000 shares authorized,43,000 issued,and 12,000 shares of treasury stock.________ shares are outstanding,and ________ shares are unissued.

Accepted Answer

A) 31,000; 17,000 
B) 48,000; 12,000 
C) 17,000; 31,000 
D) 12,000; 48,000

Question 2

Identify whether the stockholders' equity terminology belongs to U.S.GAAP,IFRS,or both.

Accepted Answer

The answer of Identify whether the stockholders' equity terminology belongs...

Question 3

Caesar Company issued 1,500 shares of its $1 par value common stock for $5 per share.They will record ________ in the common stock account at par value and ________ as additional paid-in-capital.

Accepted Answer

A) $1,500; $7,500 
B) $7,500; $1,500 
C) $1,500; $6,000 
D) $2,500; $5,000

Question 4

On January 1,2014,Illusions,Inc.issued 800 shares of $80 par value,callable preferred shares for $80,000,with the right to call the shares on January 1,2015 for $100 per share.The company calls all 800 shares on January 1,2015.What is the necessary journal entry to record this transaction for 2015?

Accepted Answer

A)   
B)   
C)   
D)

Question 5

Bach,Inc.issued 800 shares of 8%,$80 par value,preferred stock for $80,000.The board of directors declared dividends on December 30,to be paid in January.What journal entry is necessary to record the payment of dividends?

Accepted Answer

A)   
B)   
C)   
D)

Question 6

Bitters Co.'s net income is $12,000,the market value is $150,000,and the book value of stockholders' equity is $80,000.What is the Price-to-Book Ratio for Bitters Co.?

Accepted Answer

A) .15 
B) .53 
C) 1.88 
D) 2.1

Question 7

Mozart & Company paid cash dividends totaling $150,000 in 2013 and $75,000 in 2014.In 2015,the company will pay cash dividends of $800,000.There were no dividends in arrears as of January 1,2013.There are 25,000 shares of common stock outstanding and 100,000 shares of 6 percent,$50 par cumulative preferred. What is the amount of cash dividends payable to common stockholders in 2015?

Accepted Answer

A) $125,000 
B) $150,000 
C) $500,000 
D) $800,000

Question 8

Treasury shares are considered to be ________.

Accepted Answer

A) unauthorized shares 
B) retired shares 
C) issued shares 
D) outstanding shares

Question 9

Investors' perceptions of a firm's expected future profitability and prospects is reflected in the ________.

Accepted Answer

A) firm's net income 
B) par value of a firm's common stock 
C) market value of a firm's common stock 
D) dividends paid

Question 10

C&S Corporation issued 1,000 shares of its $4 par value common stock for $12 per share.What amount would they record as additional paid-in-capital?

Accepted Answer

A) $1,000 
B) $4,000 
C) $8,000 
D) $12,000

Question 11

Illusions,Inc.reacquired 15,000 shares of its common stock for $15 per share on June 1.On July 1 they sold 5,000 shares for $20 per share.On August 1 they sold 5,000 shares for $12 per share.Assuming no prior balance in the Additional Paid-in Capital From Treasury Stock Transactions account,what is the ending balance in this account following these transactions?

Accepted Answer

A) $5,000 debit balance 
B) $5,000 credit balance 
C) $10,000 debit balance 
D) $10,000 credit balance

Question 12

________ is a major component/section of stockholders' equity.

Accepted Answer

A) Common capital 
B) Preferred capital 
C) Contributed capital 
D) Retained capital

Question 13

S & C Company issues 1,500 shares of common stock with a $2 par value.The issue price of the stock is $13 per share,and the company paid an underwriter $500 in stock issue costs.What is the journal entry required to record the issuance of the shares?

Accepted Answer

A)   
B)   
C)   
D)

Question 14

Why would a company repurchase shares of its own common stock?

Accepted Answer

The answer of Why would a company repurchase shares of...

Question 15

The total number of shares that a firm can legally issue are called ________.

Accepted Answer

A) allocated shares 
B) authorized shares 
C) outstanding shares 
D) common shares

Question 16

A stock split reduces retained earnings.

Accepted Answer

A) True 
 B)False

Question 17

________ receive dividend distributions after the company has paid all other providers of capital their return on investment.

Accepted Answer

A) Contributing shareholders 
B) Common shareholders 
C) Preferred shareholders 
D) Primary shareholders

Question 18

________ are paid from capital surplus instead of retained earnings.

Accepted Answer

A) Liquidating dividends 
B) Property dividends 
C) Stock dividends 
D) Fund dividends

Question 19

Caesar Cruise Lines,Inc.issues 2,000 shares of common stock with a $1 par value.The issue price of the stock is $18 per share.What is the journal entry required to record the issuance of the shares?

Accepted Answer

A)   
B)   
C)   
D)

Question 20

The most popular method of accounting for treasury stock is the ________ method.

Accepted Answer

A) par value 
B) cost 
C) fair value 
D) A and B are utilized equally

Exam 17: Accounting for Stockholders Equity

Hawks,Inc.has 60,000 shares authorized,43,000 issued,and 12,000 shares of treasury stock. shares are outstanding,and shares are unissued.

Identify whether the stockholders' equity terminology belongs to U.S.GAAP,IFRS,or both.

Caesar Company issued 1,500 shares of its $1 par value common stock for $5 per share.They will record in the common stock account at par value and as additional paid-in-capital.

On January 1,2014,Illusions,Inc.issued 800 shares of $80 par value,callable preferred shares for $80,000,with the right to call the shares on January 1,2015 for $100 per share.The company calls all 800 shares on January 1,2015.What is the necessary journal entry to record this transaction for 2015?

Bach,Inc.issued 800 shares of 8%,$80 par value,preferred stock for $80,000.The board of directors declared dividends on December 30,to be paid in January.What journal entry is necessary to record the payment of dividends?

Bitters Co.'s net income is $12,000,the market value is $150,000,and the book value of stockholders' equity is $80,000.What is the Price-to-Book Ratio for Bitters Co.?

Treasury shares are considered to be ________.

Investors' perceptions of a firm's expected future profitability and prospects is reflected in the ________.

C&S Corporation issued 1,000 shares of its $4 par value common stock for $12 per share.What amount would they record as additional paid-in-capital?

________ is a major component/section of stockholders' equity.

S & C Company issues 1,500 shares of common stock with a $2 par value.The issue price of the stock is $13 per share,and the company paid an underwriter $500 in stock issue costs.What is the journal entry required to record the issuance of the shares?

Why would a company repurchase shares of its own common stock?

The total number of shares that a firm can legally issue are called ________.

A stock split reduces retained earnings.

________ receive dividend distributions after the company has paid all other providers of capital their return on investment.

________ are paid from capital surplus instead of retained earnings.

Caesar Cruise Lines,Inc.issues 2,000 shares of common stock with a $1 par value.The issue price of the stock is $18 per share.What is the journal entry required to record the issuance of the shares?

The most popular method of accounting for treasury stock is the ________ method.