Recent Question

The return on common stockholders’ equity is computed 1. The return on ________________ shows how many dollars of net income were earned for each dollar invested by owners. 2. The return on common stockholders’ equity is computed by dividing _____________ minus _______________ dividends by average common stockholders’ equity. 3. Income statements for corporations report _______________ in a separate secti ...

Other / Other 06 Apr 2016

Direction of change cannot be determined 1 Match each item/event pair below with the indicated change in the item. An individual classification may be used more than once, or not at all. For each dividend, assume that both declaration and payment or distribution has occurred. Classifications A. Item increases B. Item decreases C. Item is unchanged D. Direction of change cannot be determined Item Event ____ 1. Par value per sha ...

Other / Other 06 Apr 2016

Wando Company reported retained earnings Ex. 1 The following information is available for Grey Goose Inc.: Beginning retained earnings $600,000 Cash dividends declared 60,000 Net income for 2014 120,000 Stock dividend declared 15,000 Understatement of last year's depreciation expense 30,000 Instructions Based on the preceding information, prepare a retained earnings statement for 2014. Ex. 2 Wando Company reported retained e ...

Other / Other 06 Apr 2016

Prepare the entry for the prior period Ex. 1 Record the following transactions for Tri-State Corporation on the dates indicated. 1. On March 31, 2014, Tri-State Corporation discovered that Depreciation Expense on equipment for the year ended December 31, 2013, had been recorded twice, for a total amount of $84,000 instead of the correct amount of $42,000. 2. On June 30, 2014, the company's internal auditors discovered that the April 20 ...

Other / Other 06 Apr 2016

The following accounts appear in the ledger of Rowlands Ex. 1 The following accounts appear in the ledger of Rowlands Inc. after the books are closed at December 31, 2014. Common Stock, $1 par value, 500,000 shares authorized, 400,000 shares issued $400,000 Common Stock Dividends Distributable 60,000 Paid-in Capital in Excess of Par—Common Stock 650,000 Preferred Stock, $100 par value, 6%, 10,000 shares authorized; 2 ...

Other / Other 06 Apr 2016

Prior period adjustments to correct for overstatement 1 Identify which of the following items would be reported as additions (A) or deductions (D) in a Retained Earnings Statement. 1. Net Income 2. Net Loss 3. Cash Dividends 4. Stock Dividends 5. Prior period adjustments to correct for overstatement of prior years’ net income 6. Prior period adjustments to correct for understatement of prior years’ net income ...

Other / Other 06 Apr 2016

Prepare the journal entries that should be made by Echota Corporation 1 The stockholders' equity section of Echota Corporation at December 31, 2013, included the following: 5% preferred stock, $100 par value, cumulative, 10,000 shares authorized, 8,000 shares issued and outstanding $ 800,000 Common stock, $10 par value, 250,000 shares authorized, 200,000 shares issued and outstanding $2,000,000 Dividends were not declared ...

Other / Other 06 Apr 2016

Indicate the balances in the stockholders' equity 1 Timber Ridge Corporation was organized on January 1, 2013. During its first year, the corporation issued 40,000 shares of $5 par value preferred stock and 400,000 shares of $1 par value common stock. At December 31, the company declared the following cash dividends: 2013 $ 8,000 2014 $30,000 2015 $70,000 Instructions (a) Show the allocation of dividends to each class of sto ...

Other / Other 06 Apr 2016

Lundy Corporation had Retained Earnings Ex. 1 Tortola Company reported the following balances at December 31, 2013: common stock $500,000; paid-in capital in excess of par value $100,000; retained earnings $250,000. During 2014, the following transactions affected stockholders’ equity. 1. Issued preferred stock with a par value of $150,000 for $200,000. 2. Purchased treasury stock (common) for $40,000. 3. Earned net income of ...

Other / Other 06 Apr 2016

The date the board of directors formally declares the dividend Match the items below by entering the appropriate code letter in the space provided. A. Deficit F. Return on common stockholders’ equity B. Prior period adjustment G. Cash dividend C. Liquidating dividend H. Declaration date D. Retained earnings restrictions I. Stock dividend E. Earnings per share J. Stock split ____ 1. A dividend declared out of pai ...

Other / Other 06 Apr 2016