Not use chart gpt please solve this question general Accounting Omega Corporation repurchases 3,000 shares of itsown $4 par common stock for $20 per share, recordingit at cost. What is the effect on total stockholders'equity?A) Decrease by $60,000B) Decrease by $12,000C) Decrease by $32,000D) Decrease by $40,000

Step 1: Define Treasury StockWhen a company repurchases its own shares, the repurchased stock is…

Answered: Omega Corporation repurchases 3,000…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 12MCQ

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Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the dividends paid to common stockholders for last year were 2,600,000 and that the market price per share of common stock is 51.50. Required: 1. Compute the dividends per share. 2. Compute the dividend yield. (Note: Round to two decimal places.) 3. Compute the dividend payout ratio. (Note: Round to two decimal places.)
Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the market price per share for Rebert is 51.50. Required: 1. Compute the dollar amount of preferred dividends. 2. Compute the number of common shares. 3. Compute earnings per share. (Note: Round to two decimals.) 4. Compute the price-earnings ratio. (Note: Round to the nearest whole number.)
During 20X2, Evans Company had the following transactions: a. Cash dividends of 6,000 were paid. b. Equipment was sold for 2,880. It had an original cost of 10,800 and a book value of 5,400. The loss is included in operating expenses. c. Land with a fair market value of 15,000 was acquired by issuing common stock with a par value of 3,600. d. One thousand shares of preferred stock (no par) were sold for 4.20 per share. Evans provided the following income statement (for 20X2) and comparative balance sheets: Required: Prepare a worksheet for Evans Company.
Ames Corporation repurchases 10,000 shares of its common stock for $12 per share. The shares were originally issued at an average price of $10 per share. Later it resells 6,000 of the shares for $15 per share and the remaining 4,000 shares for $17 per share. How much gain or loss should Ames report on its income statement as a result of these transactions? $38.000 gain $0 $20,000 loss $20,000 loss and $38,000 gain
During 20X2, Norton Company had the following transactions: a. Cash dividends of 20,000 were paid. b. Equipment was sold for 9,600. It had an original cost of 36,000 and a book value of 18,000. The loss is included in operating expenses. c. Land with a fair market value of 50,000 was acquired by issuing common stock with a par value of 12,000. d. One thousand shares of preferred stock (no par) were sold for 14 per share. Norton provided the following income statement (for 20X2) and comparative balance sheets: Required: Prepare a worksheet for Norton Company.
Given the following year-end information, compute Greenwood Corporations basic and diluted earnings per share. Net income, 15,000 The income tax rate, 30% 4,000 shares of common stock were outstanding the entire year. shares of 10%, 50 par (and issuance price) convertible preferred stock were outstanding the entire year. Dividends of 2,500 were declared on this stock during the year. Each share of preferred stock is convertible into 5 shares of common stock.
The Castle Company recently reported net profits after taxes of $15.8 million. It has 2.5 million shares of common stock outstanding and pays preferred dividends of $1 million a year. The company’s stock currently trades at $60 per share. Compute the stock’s earnings per share (EPS). What is the stock’s P/E ratio? Determine what the stock’s dividend yield would be if it paid $1.75 per share to common stockholders.
The book value per share of common stock of Lawrence Company is $10. 500 Shares of treasury stock are purchased for $14 per share. How would this transaction affect retained earnings and book value per share? Book value per share = Total stockholders' equity/Number of common shares outstanding Select one: a. No effect on retained earnings and decrease book value per share b. Cannot be determined from the information provided c. No effect on retained earnings and increase book value per share d. Decrease retained earnings and increase book value per share e. Decrease retained earnings and decrease book value per share
The owners’ equity accounts for Vulcano International are shown below.a. If the company’s stock currently sells for $42 per share and a 10 percent stock dividend is declared, how many new shares will be distributed? Show how the equity accounts would change.b. If the company declared a 25 percent stock dividend, how would the accounts change? Input Area: Common stock $20,000 Par value $0.50 Capital surplus $210,000 Retained earnings $587,300 Total owners' equity $817,300 Stock price $42 Stock dividend 10% Stock dividend 25% (Use cells A6 to B13 from the given information to complete this question.) Output Area: New shares outstanding New shares issued - Capital surplus on new shares Common stock Capital surplus Retained earnings Total owners' equity New shares…
Assume that a company paid $6 per share to re-purchase 1,100 of its $3 par value common stock. The purchase of this treasury stock: Group of answer choices increased total equity by $6,600 increased total equity by $3,300 decreased total equity by $3,300 decreased total equity by $6,600
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Omega Corporation repurchases 3,000 shares of its own $4 par common stock for $20 per share, recording it at cost. What is the effect on total stockholders' equity? A) Decrease by $60,000 B) Decrease by $12,000 C) Decrease by $32,000 D) Decrease by $40,000