Question

In: Accounting

The column headings on a statement of stockholders' equity best represent a.the column headings on the...

The column headings on a statement of stockholders' equity best represent
a.the column headings on the retained earnings statement.
b.the row designations in the Stockholders' Equity section of the balance sheet.
c.the column designations in the Stockholders' Equity section of the balance sheet.
d.None of these choices are correct.
Which of the following statements is not correct with regard to prior period adjustments?
a.Prior period adjustments are errors found in a period after the error occurred.
b.Prior period adjustments arise from mathematical mistakes in a previous period.
c.Prior period adjustments are reported as an adjustment to the ending balance of retained earnings in the current period.
d.All of these choices are correct.
Wave Corporation began the current year with a retained earnings balance of $25,000. During the year, the company corrected an error made in the prior year, which was a failure to record depreciation expense of $5,000 on equipment. Also, during the current year, the company earned net income of $15,000 and declared cash dividends of $5,000. Compute the year-end retained earnings balance.
a.$30,000
b.$25,000
c.$35,000
d.$40,000
All of the following statements are true regarding earnings per share (EPS) except
a.EPS cannot be calculated if a company has no preferred stock.
b.EPS is calculated as (Net Income ? Preferred Dividends)/Average Number of Common Shares Outstanding.
c.EPS is sometimes called basic earnings per share.
d.corporations whose stock is publicly traded must report EPS on their income statements.
Corporations whose stock is traded in a public market must report earnings per share on their
a.retained earnings statement.
b.income statement.
c.balance sheet.
d.Earnings per share is not reported on the financial statements.
The numerator in the earnings per share calculation
a.represents only those earnings available to preferred stockholders.
b.represents only those earnings available to common stockholders.
c.represents earnings available to common and preferred stockholders.
d.None of these choices are correct.
Financial statement data for the year ending December 31 for the Power Company are as follows:
Net income $680,000
Preferred dividends $20,000
Average number of common shares outstanding 120,000 shares

Compute the earnings per share for the year.
a.$5.83
b.$5.67
c.$5.50
d.None of these choices are correct.

Solutions

Expert Solution

ans 1
Option
b.the row designations in the Stockholders' Equity section of the balance sheet.
is correct
In a Balance Sheet the stockholder equity section comes under the main head
Liabilities and Stockholder equity, it in the row designation represents
column heading on the statement of shareholder equity
ans 2
option c.Prior period adjustments are reported as an adjustment to the ending balance of retained earnings in the current period
These are not adjustment to the ending balance of retained earnings these are the error which occurred in previpus year and are recitified after the beginning balance of retained earnings are entered
ans 3
Year end balance
$25000-5000+15000-5000 30000
Option A is correct $30000
ans 4
Option A.EPS cannot be calculated if a company has no preferred stock.
EPS can be calculated weather the company kas preferred stock or not
as EPS is caculated for common stockholders and the formula is
(Net Income ? Preferred Dividends)/Average Number of Common Shares Outstanding.
ans 5
b.income statement
ans 6
b.represents only those earnings available to common stockholders.
As EPS is calculated for common stockholder
ans 7
EPS=(680000-20000)/120000 5.5
Opyion C $5.5 is correct

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Statement of Stockholders’ Equity The Statement of Stockholders’ Equity is also referred to as investment or...
Statement of Stockholders’ Equity The Statement of Stockholders’ Equity is also referred to as investment or net worth. It is a financial statement in annual reports to stockholders which shows the amount of paid-in capital and retained earnings and the changes therein since the preceding report. Solve the following three exercises and please show all of your calculations. Exercise 1 Retained earnings 1/1/2017                    $200,000 Net income for 2017                               $540,000 Dividends declared 2017                        $120,000 What is the amount of...
What is a statement of stockholders' equity?
What is a statement of stockholders' equity?It is a statement that reconciles only the treasury stock account.It is a statement reconciling the difference between stock issued at par value and stock issued at market value.It is a statement that summarizes changes in the entire stockholders' equity section of the balance sheet.It is the same as a retained earnings statement
Identify the major components of stockholders’ equity by examining the Statement of Stockholders’ Equity. What types...
Identify the major components of stockholders’ equity by examining the Statement of Stockholders’ Equity. What types of transactions resulted in significant changes in the Stockholder Equity accounts during the most recent year? Did your company make dividend payments to stockholders during the most recent year? For the Company UPS. Using information from UPS website/yahoo finance
The following information is from 2019 statement of stockholders' equity for Katy Inc. Stockholders' equity (in...
The following information is from 2019 statement of stockholders' equity for Katy Inc. Stockholders' equity (in millions, except shares) 2016 2015 Series A 5.375% mandatory convertible preferred stock $ 400 $ 400 Common stock, par value $0.01 (128,626,740 shares issued 2019; 128,228,477 shares issued 2018) 1 1 Additional paid-in capital 3,547 3,187 Accumulated other comprehensive income, net of tax 21 19 Accumulated deficit (1,927 ) (686 ) Total Dynegy stockholders' equity 2,042 2,921 Noncontrolling interest (3 ) (2 ) Total...
Stockholders' Equity: Transactions and Statement The stockholders' equity section of Night Corporation's balance sheet at January...
Stockholders' Equity: Transactions and Statement The stockholders' equity section of Night Corporation's balance sheet at January 1 follows: Common stock, $10 par value, 300,000 shares authorized, 60,000 shares 600,000 issued, 6,000 shares in treasury Additional paid-in capital In excess of par value 960,000 From treasury stock 60,000 1,020,000 Retained earnings 696,000 2,316,000 Less: Treasury stock (6,000 shares) at cost 276,000 Total Stockholders’ Equity 2,040,000 The following transactions affecting stockholders’ equity occurred during the year: Jan. 8 Issued 15,000 shares of...
Stockholders’ Equity: Transactions and Statement The stockholders’ equity section of Night Corporation’s balance sheet at January...
Stockholders’ Equity: Transactions and Statement The stockholders’ equity section of Night Corporation’s balance sheet at January 1 follows: Common stock, $5 par value, 300,000 shares authorized, 60,000 shares $300,000 issued, 6,000 shares in treasury Additional paid-in capital In excess of par value $480,000 From treasury stock 30,000 510,000 Retained earnings 348,000 1,158,000 Less: Treasury stock (6,000 shares) at cost 138,000 Total Stockholders’ Equity $1,020,000 The following transactions affecting stockholders’ equity occurred during the year: Jan. 8 Issued 15,000 shares of...
Stockholders' Equity: Transactions and Statement The stockholders' equity section of Night Corporation's balance sheet at January...
Stockholders' Equity: Transactions and Statement The stockholders' equity section of Night Corporation's balance sheet at January 1 follows: Common stock, $8 par value, 300,000 shares authorized, 60,000 shares 480,000 issued, 6,000 shares in treasury Additional paid-in capital In excess of par value 720,000 From treasury stock 45,000 765,000 Retained earnings 522,000 1,767,000 Less: Treasury stock (6,000 shares) at cost 207,000 Total Stockholders’ Equity 1,560,000 The following transactions affecting stockholders’ equity occurred during the year: Jan. 8 Issued 15,000 shares of...
Statement of Stockholders' Equity The stockholders’ equity T accounts of I-Cards Inc. for the fiscal year...
Statement of Stockholders' Equity The stockholders’ equity T accounts of I-Cards Inc. for the fiscal year ended December 31, 20Y9, are as follows. COMMON STOCK Jan. 1 Balance 900,000 Apr. 14 Issued 9,600 shares 384,000 Dec. 31 Balance 1,284,000 PAID-IN CAPITAL IN EXCESS OF PAR Jan. 1 Balance 144,000 Apr. 14 Issued 9,600 shares 76,800 Dec. 31 Balance 220,800 TREASURY STOCK Aug. 7 Purchased 1,600 shares 59,200 RETAINED EARNINGS Mar. 31 Dividend 23,000 Jan. 1 Balance 1,570,000 June. 30 Dividend...
Problem 10-5A Understand stockholders' equity and the statement of stockholders' equity (LO10-7) [The following information applies...
Problem 10-5A Understand stockholders' equity and the statement of stockholders' equity (LO10-7) [The following information applies to the questions displayed below.] Donnie Hilfiger has two classes of stock authorized: $1 par preferred and $0.01 par value common. As of the beginning of 2018, 300 shares of preferred stock and 2,400 shares of common stock have been issued. The following transactions affect stockholders’ equity during 2018: March 1 Issue 1,100 shares of common stock for $26 per share. May 15 Purchase...
1-The statement of changes in stockholders' equity: Multiple Choice Is part of the statement of retained...
1-The statement of changes in stockholders' equity: Multiple Choice Is part of the statement of retained earnings. Shows only the ending balances in stockholders' equity. Describes changes in paid-in capital and retained earnings subcategories. Does not include changes in treasury stock. Is reported by very few companies. 2- Prior to June 30, a company has never had any treasury stock transactions. A company repurchased 100 shares of its common stock on June 30 for $40 per share. On July 20,...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT