CH11 Definitions
a class of stock that is assigned a value per share by the corporation in its charter
What is par value?
Write a journal entry for the following:
ABC company issued 500 shares of no-par common stock for $50 per share.
What is
Debit cash for $25,000
Credit Common Stock for $25,000?
List the cash flow section that the following activity goes in, and whether it will appear as an increase or a decrease:
Cash Paid for Dividends
What is a decrease in the financing section?
This artist earned the distinction of being the best-selling musician in the 2000s. Two of the artist's albums are among the top five highest selling albums in the 2000s.
Who is Eminem?
A report that describes the changes in each of the key equity accounts occurring during the period
What is the Statement of Stockholder's Equity?
This is a disadvantage to the corporate form.
What is corporate taxation?
What is governmental regulation?
(Answers may vary)
Write a journal entry for the following:
ABC company issued 400 shares of $20 par common stock for land valued at $105,000.
What is
Debit land for $105,000
Credit common stock, $20 par for $80,000
Credit PIC- Excess of par for $25,000?
List the cash flow section that the following activity goes in, and whether it will appear as an increase or a decrease:
Cash received for sale of plant assets
What is an increase on the investing section?
The 2004 documentary "Super Size Me" chronicled the decline in health of filmmaker Morgan Spurlock as he spent 30 days eating food exclusively from this fast food chain.
What is McDonald's?
Net Income = $2,700,000
Preferred Dividends = $388,020
Weighted-Average Shares = 678,000
Find the Basic Earnings per share.
What is a Basic EPS of 3.41?
The total amount of cash and other assets the corporation receives from its stockholders in exchange for stock.
What is paid-in capital?
A $3 per share cash dividend is declared on ABC Corporation's 4,300 common shares outstanding. Record the date of declaration.
What is
Debit Retained Earnings for $12,900
Credit Common Dividends Payable for $5,000?
List the cash flow section that the following activity goes in, and whether it will appear as an increase or a decrease:
Increase in prepaid expenses
What is a decrease on the operating section?
In 2000, this actor starred in the live-action remake of “How the Grinch Stole Christmas”
Who is Jim Carrey?
Net Income: $2,700,000
Preferred Dividends: $388,020
Shares Outstanding: 678,000
Market Value per Share: $2.00
Find the Price-Earnings Ratio
What is 0.59?
This is a distribution of additional shares of stock to stockholders according to their percentage of ownership.
What is a stock split?
Write a journal entry for the following:
ABC Corporation purchased 370 of their own shares of stock in the open market for $12 per share.
What is
Debit Treasury Stock for $4,440
Credit Cash for $4,440?
List the cash flow section that the following activity goes in, and whether it will appear as an increase or a decrease:
Land paid for by a note
What is a separate note not in the cash flow statement?
These are early 2010s collectible rubber bracelets that formed into shapes (typically animals) and became such a cultural phenomenon that national news outlets reported the toys being banned in school districts.
What are Silly Bandz?
Find the Cash flow on total assets:
Operating cash flows: $354,000
Financing cash flows: $100,000
Average total assets: $1,328,000
What is 0.27?
This person assists with purchases and sales of shares by receiving and issuing certificates as necessary.
Who is the transfer agent?
Write a journal entry for the following:
200 shares issued and outstanding with a $10 par. ABC Corporation declares a 20% stock dividend when the stock's market value is $18 per share.
What is
Debit retained earnings for $720 (200*20%*18)
Credit CS Dividends Dist for $400 (200*20%*10)
Credit PIC - Excess of Par for $320?
List the cash flow section that the following activity goes in, and whether it will appear as an increase or a decrease:
Gain on retirement on a note
What is a decrease on the operating section?
This video rental company reached its hight during the mid 2000s, but sharply declined in the early 2010s and officially went bankrupt.
What is Blockbuster?
Find the Dividend Yield
Annual cash dividends per share: $0.92
Market value per share: $14.15
What is 6.5%