Which of the following is not a component of stockholder's equity?
Dividends Payable
Which of the following statements is true?
The shares that are in the hands of the stockholders are said to be outstanding.
Authorize stock represents the:
Maximum number of shares that can be issued
McKean Corporation authorized 500,000 shares of common stock in its articles of incorporation. On May 1, 2013, 100,000 shares were sold to the company's founders. However, on October 15, 2013, McKean repurchased 20,000 shares to settle a dispute among the
100,000 and 80,000
Harvey Corporation shows the following in the stockholders' equity section of its balance sheet: The par value of its common stock is $0.25 and the total balance in the Common Stock account is $50,000. Also noted is that 15,000 shares are currently design
185,000
Ames Corporation repurchases 10,000 shares of its common stock for $12 per share. The shares were originally issued at an average price of $10 per share. Later it resells 6,000 of the shares for $15 per share and the remaining 4,000 shares for $17 per sha
$0
With regard to preferred stock,
its stockholders may have the right to participate, along with common stockholders,
DAE Parts Shop began business on January 1, 2013. The corporate charter authorized issuance of 20,000 shares of $5 par value common stock and 5,000 shares of $10 par value, 5% cumulative preferred stock. DAE issues 12,000 shares of common stock at $25 per
increase of $300,000
Thornwood Partners began business on January 1, 2013. The corporate charter authorized issuance of 75,000 shares of $1 par value common stock and 8,000 shares of $3 par value, 10% cumulative preferred stock. July 1, Thornwood issued 20,000 shares of commo
Debit to Prepaid Rent, $72,000; credit to Common Stock, $20,000; credit to Additional Paid-In-Capital-Common Stock, $52,000
A company would repurchase its own stock for all of the following reasons except:
it believes the stock is overhauled
When a company purchases treasury stock, which of the following statements is true?
The cost of treasury stock reduces stockholders' equity
If a company purchases treasury stock for $6,000 and then reissues it for $5,000, the difference of $1,000 is:
a decrease in stockholders' equity
When a company retires its own common stock, the company must
decrease the Common Stock account balances by the original issue price
Which of the following should be following should be considered when a company decides to declare a cash dividend on common stock?
the cash available and the retained earnings balance
When a company declares a cash dividend, which of the following is true?
Liabilities are increased
What is the effect of a stock dividend on stockholders' equity?
Total stockholders' equity stays the same
As a result of a stock split,
the par value of the stock is changed in the reverse proportion as the stock split
The balance of the $2.50 par value Common Stock account for Patriot Company was $240,000,000 before its recent 2-for-1 stock split. The market price of the stock was $50 per share before the stock split. What occurred as a result of the stock split?
The market price of the stock dropped to approximately $25 per share.
When a company declares a 3-for-1 stock split, the number of outstanding shares:
Triples
Shea Company has 100,000 shares of 6%, $50 per value, cumulative preferred stock. In 2012, no dividends were declared on preferred stock. In 2013, Shea had a profitable year and decided to pay dividends to stockholders of both preferred and common stock.
$150,000
RVR Enterprises shows net income of $100,000 for 2013 and retained earnings of $500,000 on its December 31, 2013 balance sheet. During the year, RVR declared and $60,000 in dividends. What was RVR's retained earning 2012?
$460,000