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Date on which the dividend checks are written.

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Dividends ...

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On January 1, 2016, the stockholders' equity section of Gibbons Corporation's balance sheet reported the following: On January 1, 2016, the stockholders' equity section of Gibbons Corporation's balance sheet reported the following: During 2016, the following selected transactions occurred (assume they occurred in the order given): Required: Prepare the stockholders' equity section of the balance sheet as of December 31, 2016. During 2016, the following selected transactions occurred (assume they occurred in the order given): On January 1, 2016, the stockholders' equity section of Gibbons Corporation's balance sheet reported the following: During 2016, the following selected transactions occurred (assume they occurred in the order given): Required: Prepare the stockholders' equity section of the balance sheet as of December 31, 2016. Required: Prepare the stockholders' equity section of the balance sheet as of December 31, 2016.

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blured image Retained earnings =...

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A company repurchased shares of its common stock for $19,000. The stock was initially issued for $12,000 and had a $5,000 par value. Which of the following statements correctly describes the effects of the repurchase of company's common stock shares?


A) Net income increases by $7,000.
B) Net income decreases by $7,000.
C) Stockholders' equity increases $12,000.
D) Stockholders' equity decreases $19,000.

E) A) and B)
F) A) and C)

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Which of the following transactions does not result in an increase in stockholders' equity?


A) Sale of no-par common stock for cash.
B) Declaration and distribution of a common stock dividend.
C) Sale of preferred stock for cash at par value.
D) Sale of treasury stock for cash at a price less than its cost.

E) A) and D)
F) B) and D)

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Which of the following statements about earnings per share (EPS) is correct?


A) Increased net income would cause earnings per share to decrease.
B) Issuance of more common shares would cause earnings per share to increase.
C) Purchasing treasury shares would cause earnings per share to decrease.
D) EPS is calculated using the number of common shares of stock outstanding.

E) A) and C)
F) A) and B)

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Shares of stock held as treasury stock do not have voting rights or the right to receive dividends.

A) True
B) False

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Three dates that are significant for cash dividends are described in each part below. Part A: Name each of the described dates. Three dates that are significant for cash dividends are described in each part below. Part A: Name each of the described dates. Part B: Prepare the journal entry for each date. Assume a $25,000 cash dividend. Part B: Prepare the journal entry for each date. Assume a $25,000 cash dividend. Three dates that are significant for cash dividends are described in each part below. Part A: Name each of the described dates. Part B: Prepare the journal entry for each date. Assume a $25,000 cash dividend.

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Part A: Name each of the descr...

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Atkins Company had 20,000 shares of $5 par value common stock outstanding prior to declaring a 10% common stock dividend. The market value of the common stock on the declaration date was $11. Which of the following statements correctly describes the effect of the common stock dividend?


A) Retained earnings decreased $22,000.
B) Retained earnings decreased $10,000.
C) Total stockholders' equity decreased $22,000.
D) Total stockholders' equity decreased $10,000.

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

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Total stockholders' equity of Grasse Company is not affected when a stockholder sells shares of Grasse Company stock to another stockholder.

A) True
B) False

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CBA Company reported total stockholders' equity of $85,000 on its balance sheet dated December 31, 2016. During the year ended December 31, 2017, CBA reported net income of $10,000, declared and paid a cash dividend of $2,000, and issued additional common stock for $20,000. What is total stockholders' equity as of December 31, 2017?


A) $117,000.
B) $113,000.
C) $109,000.
D) $115,000.

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

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RKJ Company has provided the following information: ā€¢ 100,000 shares of $5 par value common stock are authorized ā€¢ 70,000 shares have been issued ā€¢ 65,000 shares are outstanding Which of the following statements is correct?


A) RKJ has 35,000 shares of treasury stock.
B) RKJ has 30,000 shares of treasury stock.
C) RKJ can issue an additional 35,000 shares of common stock.
D) RKJ can issue an additional 30,000 shares of common stock.

E) A) and B)
F) A) and C)

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Which of the following statements is not correct?


A) Cash flow from financing activities increases when treasury shares are resold.
B) Cash dividends decrease cash flow from financing activities.
C) Cash flow from investing activities decreases when treasury shares are purchased.
D) Issuance of new shares of stock increases cash flow from financing activities.

E) A) and B)
F) A) and C)

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Treasury stock shares are shares of stock that are:


A) Authorized and outstanding.
B) Authorized but not issued.
C) Authorized, issued, and outstanding.
D) Authorized and issued, but not outstanding.

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

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A company declares a 40% large stock dividend when there were 4 million common shares outstanding with a $1 par value. The current market price is $20 per common share. Which of the following will be the effect of the stock dividend?


A) Retained earnings will decrease by $1.6 million and common stock will increase by $1.6 million.
B) Retained earnings will decrease by $1.6 million and additional paid-in capital will increase by $1.6 million.
C) Retained earnings will decrease by $32 million and common stock will increase by $32 million.
D) Retained earnings will decrease by $32 million, common stock will increase by $1.6 million and additional paid-in capital will increase by $30.4 million.

E) None of the above
F) B) and D)

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A company purchased 1,000 shares of treasury stock for $38,000 cash. The shares were initially issued for $24,000 and had a $9,000 par value. Which of the following statements incorrectly describes the effect of the treasury stock purchase?


A) Net income is unchanged.
B) Earnings per share (EPS) increases.
C) Total assets remain the same.
D) Stockholders' equity decreases.

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

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Which of the following statements is true about a partnership?


A) One capital and one drawing account is used for each partnership.
B) The capital account is used to record each partner's investment and that partner's designated share of the earnings.
C) Partnerships are subject to separate business income taxes.
D) The drawing account is closed to retained earnings at the end of the perioD.The capital account in a partnership keeps track of each partner's capital balance and is affected by partner investments and withdrawals as well as net income.

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

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Which of the following statements is false?


A) Both stock splits and stock dividends increase the number of common shares issued.
B) Both stock splits and stock dividends increase the number of common shares outstanding.
C) Stock splits reallocate amounts between retained earnings and contributed capital accounts.
D) Both stock splits and stock dividends have the impact of reducing the market price of the stock.

E) None of the above
F) C) and D)

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The declaration by a corporation's board of directors of a cash dividend on common stock creates a liability on the declaration date.

A) True
B) False

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For the listed items below, identify the effects on cash flow from financing activities as increasing (I), decreasing (D), or (N) having no effect on financing cash flows: For the listed items below, identify the effects on cash flow from financing activities as increasing (I), decreasing (D), or (N) having no effect on financing cash flows:

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Total stockholders' equity increases when treasury stock is sold for an amount less than its repurchase price.

A) True
B) False

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