Help me with all 4 please asap...Explain it !Thank you 123When common stock is issued at an amount greater than par value, the difference between the par value and the proceeds from the sale is recorded byOcrediting an additional paid-in capital accountX debiting an additional paid-in capital accountcrediting the common stock accountcrediting the retained earnings accountWhich of the following statements is true regarding dividends on preferred stock?Preferred shareholders are guaranteed an annual dividend.X Preferred dividends in arrears are either a current or long-term liability, depending upon when the corporation last declared a dividend.Preferred shareholders will receive a dividend if common shareholders are paid.Preferred dividends in arrears are a current liability.Which one of the following statements is not true?The total amount of shareholders' equity is unaffected by the method used to account for treasury stock.Treasury stock transactions may result in an increase to retained earnings.X The treasury stock account is treated as a contra-shareholders' equity account.Treasury stock transactions do not result in gains or losses on the income statement.4A construction project is expected to take two-and-a-half years to complete. Partial Billings is less than Construction in Progress. The two accounts are reported together on the balance sheet in thecurrent assets section.X long-term liabilities section.long-term assets section.current liabilities section.

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Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter11: Stockholders' Equity

Section: Chapter Questions

Problem 11.1E

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Alert Companys shareholders equity prior to any of the following events is as follows: The company is considering the following alternative items: 1. An 8% stock dividend on the common stock when it is selling for 30 per share. 2. A 30% stock dividend on the common stock when it is selling for 32 per share. 3. A special stock dividend to common shareholders consisting of 1 share of preferred stock for every 100 shares of common stock. The preferred stock and common stock are selling for 123 and 31 per share, respectively. 4. A 2-for-1 stock split on the common stock, reducing the par value to 5 per share (assume the same date for declaration and issuance). The market price is 30 per share on the common stock. 5. A property dividend to common shareholders consisting of 100 bonds issued by West Company. These bonds are carried on the Alert Company books as an available-for sale investment at a fair value of 48,000 (which is also its cost); it has a current value of 54,000. 6. A cash dividend, consisting of a normal dividend and a liquidating dividend, on both the preferred and the common stock. The 10% preferred dividend includes a 2% liquidating dividend, and the 2.30 per share common dividend includes a 0.30 per share liquidating dividend (separate liquidating dividend contra accounts should be used). Required: For each of the preceding alternative items: 1. Record (a) the journal entry at the date of declaration and (b) the journal entry at the date of issuance. 2. Compute the balances in the shareholders equity accounts immediately after the issuance (any gains or losses are to be reflected in the retained earnings balance; ignore income taxes).
At what payout percentage is a stock dividend typically considered a stock split, in accordance with the recommendation of the Financial Accounting Standards Board? a. 15% b. 33% c. 25% d. 10%
Required: 5. The average per-share sales price of the common stock when issue $? per share 6. The cost of the treasury stock per share $? per share 7. The total stockholders' equity $? 8. The per-share book value of the common stock assuming that there are no dividends in arrears and that the preferred stock can be redeemed at its par value $? per share
1. What is the equity account that exists only until the common stock shares are distributed? O Retained Earnings O Common Stock Dividend Distributable O Common Stock O Common Stock Dividend Payable 79°F Rain CH
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TRUE/FALSE When preferred stock has a preference as to dividends, the current year's preferred dividend must be paid before a dividend can be paid to common stockholders.
QUESTION 1 Which best describes par value for stock? A. An arbitrary amount set by the company for each share of stock B. The current market value of the stock C. The amount expected to be paid out as a dividend on a share of stock D. The value at which stock shares were issued
When a stock dividend of less than 20−25% is declared and the market value exceeds the par or stated value of the shares, an amount equal to the market value of the shares to be distributed should be charged (debited) to which of the following accounts? Group of answer choices Stock Dividends Stock Dividends Distributable Paid-In Capital in Excess of Par Capital Stock
When calculating dilutive earnings per share, a company that has convertible preferred stock outstanding will add the dividends on the convertible preferred stock to the numerator O add the convertible preferred stock dividends, net of their tax effect, to the numerator use the treasury stock method O add the number of convertible preferred stock shares to the denominator
Match each of the following preferred stock features with its description.Preferred Stock Features Description 1. Convertible a. Prior unpaid dividends receive priority. 2. Redeemable b. Shares can be sold at a predetermined price. 3. Cumulative c. Shares can be exchanged for common stock.
Question 4:(a) What are the principal differences between common stock and preferred stock?(b) Preferred stock may be cumulative. Discuss this feature.(c) How are dividends in arrears presented in the financial statements?
Summary information from the financial statements of two companies competing in the same industry follows. Barco Company Data from the current year-end balance sheets Кyan Company Barco Company Data from the current year's income statement Кyan Company Assets Cash Accounts receivable, net Merchandise inventory $770,000 $880, 200 585,100 7,900 14,800 162,200 4.51 Sales $ 19,500 $ 34,000 46,500 84,440 5,000 290,000 632,500 Cost Interest expense Income tax expense Net income goods sold 13,000 24,300 64,600 132,500 6,950 304,400 210,400 Prepaid expenses Plant assets, net Basic earnings per share 5.11 Total assets $445,440 $542,450 Cash dividends per share 3.81 3.93 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings $ 61,340 $ 93,300 101,000 206.000 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value $ 29,800 $ 54,200 55,600 398,000 180,000 80,800 180,000…

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