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Exam 18: Shareholders Equity

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Question 71

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The shareholders' equity of Nick Co. includes the items shown below. The board of directors of Nick declared cash dividends of $4 million, $8 million, and $50 million in each of its first 3 years of operation: 2016, 2017, and 2018, respectively. Common stock, $1 par, 50,000,000 shares outstanding Preferred stock, 6%, $100 par, 1,000,000 shares outstanding Required: Determine the amount of dividends per share on preferred and common stock for each of the three years. The preferred stock is noncumulative and nonparticipating.

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Question 72

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Paid-in capital in excess of par is reported:

A) As a reduction of shareholders' equity.
B) As a noncurrent asset.
C) As a noncurrent liability.
D) As an increase in shareholders' equity.

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Question 73

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Renaldo Cross Company views share buybacks as treasury stock. Renaldo repurchased shares and then later sold the shares at more than their acquisition price. What is the effect of the sale of the treasury stock on each of the following?

Retained earnings represent:

C. Worthy Ships initially issued 300,000 shares of $1 par stock for $1,500,000 in 2018. In 2020, the company repurchased 30,000 shares for $300,000. In 2021, 15,000 of the repurchased shares were resold for $240,000. In its balance sheet dated December 31, 2021, C. Worthy's treasury stock account shows a balance of:

Issued stock refers to the number of shares:

The following partial information is taken from the comparative balance sheet of Levi Corporation: - What was the amount of Levi's net income for the year 2018?

What is comprehensive income and how does it differ from net income? Where is it reported in the balance sheet?

Revenue and expense items and components of other comprehensive income can be reported in a single statement of comprehensive income using:

The Model Business Corporation Act:

The 12/31/2018 balance sheet of Despot Inc. included the following: In January 2018, Despot recorded a transaction with this journal entry: - Despot declared a property dividend to give marketable equity securities to its common stockholders. The securities had cost Despot $7 million and currently have a fair value of $16 million. Which of the following would be included in recording the property dividend declaration?

Noncash assets received as consideration for the issue of stock are always valued based on the fair value of the stock.

A statement of comprehensive income does not include:

Fowler Co.'s balance sheet showed the following at December 31, 2018: A cash dividend is declared on December 31, 2018, and is payable on January 20, 2019, to shareholders of record on January 10, 2019. Required: (1.) Prepare all appropriate journal entries, assuming a cash dividend in the amount of $1.00 per share. (2.) Prepare all appropriate journal entries, assuming a cash dividend in the amount of $5.00 per share.

The par amount of common stock represents:

Net income and other comprehensive income can be reported in a single statement of comprehensive income using:

F Co. declares a 5% stock dividend. If the market price at declaration is $12 per share, a shareholder with 110 shares likely would receive:

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Earnings-price ratio

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Retained earnings

On January 1, 2018, the board of directors of Goby Inc. declared a $540,000 dividend. The following data is from the balance sheet of Goby on that date: How much is the liquidating dividend?