Question 1

JKL Company had the following shareholders' equity section at December 31,2011:

Accepted Answer

The answer of JKL Company had the following shareholders' equity...

Question 2

When a company sells all of its existing shares of treasury stock during the year,its earnings per share will most likely increase.

Accepted Answer

A) True 
 B)False

Question 3

Select the column(s)of the financial statement(s)where each item is most easily found by putting an X in the appropriate column.SOME ITEMS MAY BE FOUND ON MORE THAN ONE STATEMENT.

Accepted Answer

The answer of Select the column(s)of the financial statement(s)where each...

Question 4

XS,Inc.began business on January 1,2011.Its corporate charter allows it to sell 100,000 shares of $1 par value common stock.Fill in the missing descriptions in the space provided for the statement of changes in shareholders' equity.

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The answer of XS,Inc.began business on January 1,2011.Its corporate charter...

Question 5

On July 1,the board of directors of Team Shirts declared a $0.75 cash dividend per share for shareholders owning company stock on July 10.The checks will be issued on July 15.What are the dates of declaration,record,and payment?

Accepted Answer

The answer of On July 1,the board of directors of...

Question 6

Diluted earnings per share is calculated as if all outstanding securities that could be converted into common stock actually were converted.

Accepted Answer

A) True 
 B)False

Question 7

Use the following information obtained from the company's computerized accounting information system to answer the question(s)below.Note: There were no preferred shares outstanding and no additional common shares were issued in 2011.  Dividends declared in 2011 equal ________.

Accepted Answer

A) $0 
B) $5,000 
C) $6,000 
D) an amount that cannot be determined from the information given

Question 8

On October 15,Manx Company bought 400 shares of its own stock for $16 per share.On December 10,Manx Company sold all of the same shares on the market for $20 per share.
Show how both of these transactions affect the accounting equation.Include both account titles and amounts.

Accepted Answer

The answer of On October 15,Manx Company bought 400 shares...

Question 9

J & D Company had beginning retained earnings of $65,000.During the year the company had net income of $150,000,and declared and paid dividends of $9,500.The ending balance in retained earnings is ________.

Accepted Answer

A) $215,000 
B) $55,500 
C) $205,500 
D) $224,500

Question 10

An investor can reduce the risk of investing in a particular company's stock by ________.

Accepted Answer

A) investing in the stock of other companies in other industries 
B) buying the same company's bonds as well as its stock 
C) buying additional shares of stock in the same company 
D) investing in the stock of other companies in the same industry

Question 11

G-Hi Corporation's state charter authorizes the corporation to issue 1,000,000 shares of $1 par value common stock.It has sold 600,000 shares of common stock to the public.At the end of the year it held 20,000 shares of treasury stock.
1.How many shares are authorized?
2.How many shares are issued?
3.How many shares are outstanding?

Accepted Answer

The answer of G-Hi Corporation's state charter authorizes the corporation...

Question 12

The owners' claims to the assets of a corporation are called shareholders' equity or stockholders' equity.

Accepted Answer

A) True 
 B)False

Question 13

A ________ is created when a corporation increases the number of shares and proportionately decreases the par value.

Accepted Answer

A) cash dividend 
B) liquidating dividend 
C) stock dividend 
D) stock split

Question 14

Show the effect on the accounting equation for each of the events below.Fill in the amount and the letter of the account title from the list of accounts provided.

Accepted Answer

The answer of Show the effect on the accounting equation...

Question 15

Argonaut Enterprises had 500,000 shares of common stock outstanding on January 1.On June 1,Argonaut issued an additional 60,000 common shares.Argonaut has no treasury stock.The weighted average number of common shares outstanding for the year was ________.

Accepted Answer

A) 500,000 
B) 560,000 
C) 530,000 
D) 535,000

Question 16

Jem's Jewelers reported total shareholders' equity of $100,000 on its February 28 balance sheet.During March,the business earned $250,000,and declared and paid a cash dividend of $10,000.What was total shareholders' equity on March 31?

Accepted Answer

A) $360,000 
B) $350,000 
C) $340,000 
D) $260,000

Question 17

Explain the difference between contributed capital,capital stock,and additional paid-in capital.

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The answer of Explain the difference between contributed capital,capital stock,and...

Question 18

What is preferred stock?

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The answer of What is preferred stock?...

Question 19

Three Brothers Fitness Center had beginning retained earnings of $170,000.During the year the company had net income of $50,000 and declared dividends of $66,000.The Company issued 500 shares of stock for $15 each during the year and repurchased 100 shares of treasury stock for $11 per share.Calculate the ending balance in retained earnings.

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The answer of Three Brothers Fitness Center had beginning retained...

Question 20

Apply each of the following items to the information needed by analysts in each of the following situations.More than one item may be applied to some situation(s).
a.earnings per share
b.retained earnings
c.net income
d.return on equity
______ 1.Morgan Washington,Certified Financial Planner,wants to understand how well the management of a company is using the owners' equity invested in a company to earn profit.
______ 2.Board member Amy Jackson wants to know if authorizing a $1.00 per share dividend is prudent.
______ 3.Investor Craig Little is comparing the profitability of several companies.

Accepted Answer

The answer of Apply each of the following items to...

Exam 8: Accounting for Shareholders Equity

JKL Company had the following shareholders' equity section at December 31,2011:

When a company sells all of its existing shares of treasury stock during the year,its earnings per share will most likely increase.

Select the column(s)of the financial statement(s)where each item is most easily found by putting an X in the appropriate column.SOME ITEMS MAY BE FOUND ON MORE THAN ONE STATEMENT.

XS,Inc.began business on January 1,2011.Its corporate charter allows it to sell 100,000 shares of $1 par value common stock.Fill in the missing descriptions in the space provided for the statement of changes in shareholders' equity.

On July 1,the board of directors of Team Shirts declared a $0.75 cash dividend per share for shareholders owning company stock on July 10.The checks will be issued on July 15.What are the dates of declaration,record,and payment?

Diluted earnings per share is calculated as if all outstanding securities that could be converted into common stock actually were converted.

Use the following information obtained from the company's computerized accounting information system to answer the question(s) below.Note: There were no preferred shares outstanding and no additional common shares were issued in 2011. Dividends declared in 2011 equal ________.

On October 15,Manx Company bought 400 shares of its own stock for $16 per share.On December 10,Manx Company sold all of the same shares on the market for $20 per share. Show how both of these transactions affect the accounting equation.Include both account titles and amounts.

J & D Company had beginning retained earnings of $65,000.During the year the company had net income of $150,000,and declared and paid dividends of $9,500.The ending balance in retained earnings is ________.

An investor can reduce the risk of investing in a particular company's stock by ________.

The owners' claims to the assets of a corporation are called shareholders' equity or stockholders' equity.

A ________ is created when a corporation increases the number of shares and proportionately decreases the par value.

Show the effect on the accounting equation for each of the events below.Fill in the amount and the letter of the account title from the list of accounts provided.

Argonaut Enterprises had 500,000 shares of common stock outstanding on January 1.On June 1,Argonaut issued an additional 60,000 common shares.Argonaut has no treasury stock.The weighted average number of common shares outstanding for the year was ________.

Jem's Jewelers reported total shareholders' equity of $100,000 on its February 28 balance sheet.During March,the business earned $250,000,and declared and paid a cash dividend of $10,000.What was total shareholders' equity on March 31?

Explain the difference between contributed capital,capital stock,and additional paid-in capital.

What is preferred stock?