64.
A company reported the following asset and liability balances at the end of 2015 and 2016:
2015
2016
Assets
$150,000
$180,000
Liabilities
$70,000
$80,000
If the company paid dividends totaling $5,000, what is the amount of net income for 2016?
65.
On December 15, 2016, the board of directors of Cross Corporation declared a cash dividend,
payable on January 8, 2017, of $.80 per share on the 2,000,000 common shares outstanding.
On December 15, 2016, Cross Corporation should:
66.
The payment of a previously declared cash dividend has an overall effect of:
67.
Which of the following statements is correct?
68.
Which of the following statements correctly describes either the dividend yield or the earnings
per share?
69.
Which of the following statements is correct?
70.
A company reported total stockholders’ equity of $170,000 on its balance sheet dated
December 31, 2016. During the year ended December 31, 2017, the company reported net
income of $20,000, declared and paid a cash dividend of $4,000, declared and distributed a
10% stock dividend with a $5,000 total market value, and issued additional common stock for
$40,000. What is total stockholders’ equity as of December 31, 2017?
71.
A company reported total stockholders’ equity of $340,000 on its balance sheet dated
December 31, 2016. During the year ended December 31, 2017, the company reported net
income of $40,000, declared and paid a cash dividend of $8,000, declared and distributed a
10% stock dividend with a $10,000 total market value, issued additional common stock for
$60,000, and paid $12,000 to purchase treasury stock. What is total stockholders’ equity as of
December 31, 2017?
72.
A company reported total stockholders’ equity of $540,000 on its balance sheet dated
December 31, 2016. During the year ended December 31, 2017, the company reported net
income of $60,000, declared and paid a cash dividend of $18,000, declared and distributed a
10% stock dividend with a $15,000 total market value, issued additional common stock for
$70,000, and resold treasury stock for $15,000 that it had purchased in 2016 for $12,000. What
is total stockholders’ equity as of December 31, 2017?
73.
Wendell Company provided the following pertaining to its accounting year that ended
December 31, 2016:
• Common stock with a $10,000 par value was sold for $50,000 cash
• Cash dividends totaling $20,000 were declared, of which $15,000 were paid
• Net income was $70,000
• A 5% stock dividend resulted in a common stock distribution, which had a $5,000 par value
and a $23,000 market value
• Treasury stock repurchased in a prior year for $9,000 was resold for $7,000 and in the
journal entry to record the sale, Additional paid-in capital was debited for the amount of the
difference between the repurchase price and the resale price
What is the amount of increase in Wendell’s total stockholders’ equity for the year ended
December 31, 2016?
74.
Wendell Company provided the following pertaining to its accounting year that ended
December 31, 2016:
• Common stock with a $10,000 par value was sold for $50,000 cash
• Cash dividends totaling $20,000 were declared, of which $15,000 were paid
• Net income was $70,000
• A 5% stock dividend resulted in a common stock distribution, which had a $5,000 par value
and a $23,000 market value
• Treasury stock repurchased in a prior year for $9,000 was resold for $7,000 and in the
journal entry to record the sale, Additional paid-in capital was debited for the amount of the
difference between the repurchase price and the resale price
What is the amount of the increase in Wendell’s retained earnings for the year ended
December 31, 2016?
75.
Wendell Company provided the following pertaining to its accounting year that ended
December 31, 2016:
• Common stock with a $10,000 par value was sold for $50,000 cash
• Cash dividends totaling $20,000 were declared, of which $15,000 were paid
• Net income was $70,000
• A 5% stock dividend resulted in a common stock distribution, which had a $5,000 par value
and a $23,000 market value
• Treasury stock repurchased in a prior year for $9,000 was resold for $7,000 and in the
journal entry to record the sale, Additional paid-in capital was debited for the amount of the
difference between the repurchase price and the resale price
What is the amount of increase in Wendell’s common stock account during the year 2016?
76.
Wendell Company provided the following pertaining to its accounting year that ended
December 31, 2016:
• Common stock with a $10,000 par value was sold for $50,000 cash
• Cash dividends totaling $20,000 were declared, of which $15,000 were paid
• Net income was $70,000
• A 5% stock dividend resulted in a common stock distribution, which had a $5,000 par value
and a $23,000 market value
• Treasury stock repurchased in a prior year for $9,000 was resold for $7,000 and in the
journal entry to record the sale, Additional paid-in capital was debited for the amount of the
difference between the repurchase price and the resale price
What is the amount of net increase in Wendell’s additional paid-in capital account during the
year 2016?
77.
Which of the following correctly describes the effect of declaring and distributing a common
stock dividend?
78.
A small stock dividend:
79.
A large stock dividend:
80.
Dora Company declared and distributed a 10% stock dividend on 20,000 shares of issued and
outstanding $5 par value common stock. The market price per share was $9 on the
declaration date. Which of the following correctly describes the effect of accounting for the
declaration and distribution of the stock dividend?
81.
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?
82.
Katie Company had 40,000 shares of $2 par value common stock outstanding prior to a 40%
common stock dividend declaration and distribution. The market value of the common stock
on the declaration date was $10. Which of the following statements incorrectly describes the
effect of recording the common stock dividend?
83.
Chicago Clock Corporation issued a 3–for-2 stock split of its common stock, which had a par
value of $100 before the split. What dollar amount of retained earnings should be transferred
to the common stock account?
84.
Which of the following statements is false?
85.
A company has 10 million common shares authorized and 2.5 million shares issued. The par
value is $1 per share and the market price is $30 when the company declares a 4–for-1 stock
split. Which of the following is correct?
86.
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?