|
All of the above.
The journal entry to record the issuance of common stock above
par value includes
|
A credit to Cash. |
|
A debit to Common Stock. |
|
A credit to Additional Paid-in
Capital. |
|
A debit to Common Stock and
Cash. |
Treasury stock
|
Never results in a gain or
loss. |
|
Is increased by a credit. |
|
Is reported on the income
statement. |
|
Is added to total stockholders'
equity. |
On the date of declaration, the journal entry will
|
Increase retained earnings. |
|
Increase liabilities. |
|
Decrease assets. |
|
Increase stockholders' equity. |
The journal entry prepared on the date dividends are paid
will
|
Decrease retained earnings. |
|
Increase liabilities. |
|
Decrease assets. |
|
Decrease stockholders' equity. |
Stock dividends
|
Decrease total stockholders'
equity. |
|
Increase total stockholders'
equity. |
|
Decrease retained earnings. |
|
Increase retained earnings. |
A stock split will
|
Decrease total stockholders'
equity. |
|
Increase total stockholders'
equity. |
|
Decrease retained earnings. |
|
Increase retained earnings. |
|
Not affect total stockholders'
equity. |
When preferred stock is issued at par value
|
Assets will decrease. |
|
Stockholders' equity will
decrease. |
|
Liabilities will increase. |
|
Contributed capital will
increase |
A cumulative dividend preference guarantees dividends owed from
prior years will be paid to preferred stockholders before dividends
are paid to common stockholders.
Select each of the items that are used to compute earnings per
share (EPS).
|
Current Stock Price |
|
Average Common Stockholders'
Equity |
|
Average Number of Common Shares
Outstanding |
|
Net Income - Preferred
Dividends |
|
Earnings Per Share |
Select each of the items that are used to compute return on
equity (ROE).
|
Current Stock Price |
|
Average Common Stockholders'
Equity |
|
Average Number of Common Shares
Outstanding |
|
Net Income - Preferred
Dividends |
|
Earnings Per Share |
Select each of the items that are used to compute price/earnings
(P/E).
|
Current Stock Price |
|
Average Common Stockholders'
Equity |
|
Average Number of Common Shares
Outstanding |
|
Net Income - Preferred
Dividends |
|
Earnings Per Share |
A higher EPS from one year to the next means greater
profitability.
|
True |
|
False
The Jackson Co. was authorized to issue 1,000,000 shares of $1 par
value common stock. On March 1, 2013, the Jackson Co. sold 100,000
shares of common stock for $8 a share. On September 1, 2013, the
Jackson Co. repurchased 20,000 shares of common stock for $10 a
share.
Issued Shares
|
(Click to
select)100,000 shares1,000,000 shares20,000 shares80,000
shares |
Outstanding Shares
|
(Click to
select)100,000 shares1,000,000 shares20,000 shares80,000
shares |
Authorized Shares
|
(Click to
select)100,000 shares1,000,000 shares20,000 shares80,000
shares |
Treasury Stock
|
(Click to
select)100,000 shares1,000,000 shares20,000 shares80,000
shares |
|
|