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 91

Multiple Choice

Review LaterAdd Note

Review Later

The following partial information is taken from the comparative balance sheet of Levi Corporation: - How many of Levi's common shares were outstanding on 12/31/2017?

A) 14 million.
B) 9 million.
C) 5 million.
D) None of these answer choices are correct.

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

Correct Answer

verified

Show Answer

Question 92

Multiple Choice

Review LaterAdd Note

Review Later

Dan Druff Shampoo has 1,000,000 shares of common stock authorized with a par value of $1 per share, of which 500,000 shares are outstanding. When the market value was $9 per share, Druff issued a stock dividend by which for each ten shares held, one share was issued as a stock dividend. The par per share did not change. What entry did Druff record for this transaction?

A)
B)
C)
D)

E) B) and C)
F) All of the above

Correct Answer

verified

Show Answer

Question 93

Essay

Review LaterAdd Note

The December 31, 2018, balance sheet of MBI Company included the following: $\begin{array}{|l|l|}\hline\text { Common stock, 20 million shares outstanding at } \$ 1 \text { par } & \$ 20,000,000 \\\hline \text { Paid-in capital-excess of par } & 100,000,000 \\\hline \text { Retained earnings } & 115,000,000\\\hline\end{array}$ MBI completed the following transactions in 2018 relating to treasury stock: $\begin{array}{|l|l|}\hline \text { March 17: } & \text { Reacquired } 2 \text { million shares at } \$ 10 \\\hline \text { May 17: } & \text { Reacquired 2 million shares at } \$ 9 \\\hline \text { August 10: } & \text { Issued 3 million shares at } \$ 12 \\\hline\end{array}$ Required: Prepare journal entries to record the foregoing transactions on a weighted average basis.

When treasury shares are resold at a price below cost:

The 12/31/2018 balance sheet of Despot Inc. included the following: In January 2018, Despot recorded a transaction with this journal entry: - In February 2018, Despot declared cash dividends of $12 million to be paid in April of that year. What effect did the April transaction have on Despot's accounts?

Heidi Aurora Imports applies International Financial Reporting Standards (IFRS) in preparing its financial statements. The company issued shares of the company's Class B stock. Heidi Aurora Imports should report the stock in the company's statement of financial position:

Beagle Corporation has 20,000 shares of $10 par common stock outstanding and 10,000 shares of $100 par, 6% cumulative, nonparticipating preferred stock outstanding. Dividends have not been paid for the past two years. This year, a $300,000 dividend will be paid. What are the dividends per share payable to preferred and common, respectively?

When a corporation acquires its own shares, those shares assume the same status as authorized but unissued shares, as if they never had been issued. Explain how this is reflected in the accounting records if the shares are formally retired.

At the beginning of 2016, Emily Corporation issued 10,000 shares of $100 par, 5%, cumulative, preferred stock for $110 per share. No dividends have been paid to preferred or common shareholders. What amount of dividends will a preferred shareholder owning 100 shares receive in 2018 if Emily pays $1,000,000 in dividends?

When stock is issued in exchange for property, the best evidence of fair value might be any of the following except:

How do U.S. GAAP and International Financial Reporting Standards (IFRS) differ with respect to debt and equity for preferred stock?

The changes in account balances for Allen Inc. for 2018 are as follows: Assuming the only changes in retained earnings in 2018 were for net income and a $25,000 dividend, what was net income for 2018?

Investors should be wary of stock buybacks during down times because the resulting decrease in shares and increase in earnings per share can be used to mask a slowdown in earnings growth.

Outstanding common stock is:

The par amount of shares issued is normally recorded in the:

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. -Share issue cost

During its first year of operations, Cole's Electronics Inc. completed the following transactions relating to shareholders' equity. The articles of incorporation authorize 5,000,000 shares of common stock with a par of $1 per share and 1,000,000 preferred shares with a par of $100 per share. Required: Record the above transactions in general journal form.

Retained earnings might be reduced by each of the following except:

When treasury stock is purchased for an amount greater than its par, what is the effect on total shareholders' equity?