Question

9. Changes in retained earnings are commonly reported in the: Multiple Choice Statement of cash flows. Balance sheet. Statement of stockholders' equity. Multiple-step income statement. Single-step income statement.

14. Book value per common share is computed by: Multiple Choice Multiplying the number of common shares outstanding times the market price per common share. Dividing total assets by the number of shares outstanding. Dividing stockholders' equity applicable to common shares by the number of common shares outstanding. Multiplying the number of common shares outstanding by par value per share. Dividing the number of common shares outstanding by stockholders' equity applicable to common shares.

17. A corporation issued 6,000 shares of its $2 par value common stock in exchange for land that has a market value of $84,000. The entry to record this transaction would include: Multiple Choice A debit to Common Stock for $12,000. A debit to Land for $12,000. A credit to Land for $12,000. A credit to Paid-in Capital in Excess of Par Value, Common Stock for $72,000. A credit to Common Stock for $84,000.

18.The date the directors vote to declare and pay a dividend is called the: Multiple Choice Date of stockholders' meeting. Date of declaration. Date of record. Date of payment. Liquidating date.

20. A liability for dividends exists: Multiple Choice When cumulative preferred stock is sold. On the date of declaration. On the date of record. On the date of payment. For dividends in arrears on cumulative preferred stock.

Answer 1

Answer-9-

The correct option is C.

Statement of stockholders equity reports the addition to retained earnings as a result of net income earned or dividends paid during a period.

14-The correct option is-

Dividing stockholders' equity applicable to common shares by the number of common shares outstanding.

17-The correct option is -

Journal entry will be as follows

Machinery a/c Dr. $84000

To Common stock $12000

To securities premium $72000

Thus entry will include a credit to paid up capital in excess of par value, common stock for $72000

18-The correct option is -b

Date of declaration.

20-The correct option is -a

On the date of declaration.