FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 18: Shareholders Equity

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 81

Multiple Choice

Review LaterAdd Note

Review Later

Yellow Enterprises reported the following ($ in 000s) as of December 31, 2018. All accounts have normal balances. During 2019 ($ in 000s) , net income was $9,000; 25% of the treasury stock was resold for $450; cash dividends declared were $600; cash dividends paid were $500. - What ($ in 000s) was shareholders' equity as of December 31, 2018?

A) $29,600.
B) $35,600.
C) $30,400.
D) $28,600.

E) B) and D)
F) B) and C)

Correct Answer

verified

Show Answer

Question 82

Multiple Choice

Review LaterAdd Note

Review Later

Montgomery & Co., a well-established law firm, provided 500 hours of its time to Fink Corporation in exchange for 1,000 shares of Fink's $5 par common stock. Montgomery's usual billing rate is $700 per hour, and Fink's stock has a book value of $250 per share. By what amount will Fink's paid-in capital-excess of par increase for this transaction?

A) $345,000.
B) $295,000.
C) $350,000.
D) $300,000.

E) None of the above
F) C) and D)

Correct Answer

verified

Show Answer

Question 83

Essay

Review LaterAdd Note

The following information comes from the 2018 Annual Report to stockholders of Composition Inc. (in thousands): From the Statement of Changes in Shareholders' Equity: From the Statement of Cash Flows: Cash flows from financing activities: What was the average exercise price per share of stock issued under option plans in 2018?

Corporations are formed in accordance with:

On September 15, 2018, the Scottie Company board of directors declared a 10% stock dividend on common shares. The shares are to be distributed on October 10, 2018, to shareholders of record on October 1, 2018. The market price per share on the date of declaration was $24 while the market price on the date of distribution was $26. The common stock has a par of $5 per share and there were 1,000,000 shares outstanding prior to the declaration of the stock dividend. Required: Prepare any necessary journal entries to record the above transactions.

The board of directors of Capstone Inc. declared a $0.60 per share cash dividend on its $1 par common stock. On the date of declaration, there were 50,000 shares authorized, 20,000 shares issued, and 5,000 shares held as treasury stock. What is the entry for the dividend declaration?

Stock splits are issued primarily to:

The following partial information is taken from the comparative balance sheet of Levi Corporation: - What was the average price of the additional treasury shares purchased by Levi during 2018?

Use I = Increase, D = Decrease, or N = No effect, to indicate the effect on retained earnings for each of the listed transactions.

Tim Howard Gloves issued 4.75% bonds with a face amount of $24 million, together with 4 million shares of its $1 par common stock, for a combined cash amount of $44 million. The fair value of Howard's stock cannot be determined. The bonds would have sold for $18 million if issued separately. For this transaction, Howard should record paid-in capital-excess of par in the amount of:

On June 1, 2018, Blue Co. distributed to its common stockholders 200,000 outstanding common shares of its investment in Red Inc, an unrelated party. The book value on Blue's books of Red's $1 par common stock was $2 per share. Immediately after the declaration, the market price of Red's stock was $2.50 per share. In its income statement for the year ended June 30, 2018, what amount should Blue report as gain before income taxes on disposal of the stock?

When treasury shares are sold at a price above cost:

Red Inc. issues shares of stock with a par amount of $1 per share in exchange for a machine. In accounting for the transaction:

ZIP Company owns 40,000 shares of the common stock of PIK Company. ZIP decided to divest itself of this investment by distributing the PIK shares in the form of a property dividend. The dividend ratio is one share of PIK for every four shares of ZIP common held by shareholders. ZIP has 160,000 common shares outstanding. On April 15, 2018, the date of declaration, PIK stock had a par of $5 per share, a book value of $12 per share, and a fair value of $17 per share. Required: Prepare any necessary journal entries. The shares were distributed on May 15, 2018, to stockholders of record on May 1, 2018

Use I = Increase, D = Decrease, or N = No effect, to indicate the effect on retained earnings for each of the listed transactions.

What is the usual effect of a stock split (effected in the form of a stock dividend) on each of the following?

The 12/31/2018 balance sheet of Despot Inc. included the following: In January 2018, Despot recorded a transaction with this journal entry: - The transaction was for the:

The following partial information is taken from the comparative balance sheet of Levi Corporation: -What was the average price (rounded to the nearest dollar) of the additional shares issued by Levi in 2018?

Which of the following transactions decreases retained earnings?

In 2018, Poe's Products completed the treasury stock transactions described below. Poe had issued 50 million shares of its $1 par common stock for $18 several years ago. Required: Record the above transactions assuming that Poe's Products uses the cost method.