Question 1. On September 1, 2000, Galaxy Corporation’s common stockwas selling at a market price of $150 per share. On that date, Galaxy announced a 3 for 2 stock split. At what price would you expect the stock to trade immediately after the split goes into effect? Question 2. When treasury stock is reissued at a priceabove cost: Question 3 Alpha Corporation is authorized to issue2,000,000 shares of $3 par value capital stock. The corporation issued half the stock for cash at $8 per share, earned $90,000 during the first three months of operation, and declared a cash dividend of $15,000. The total paid-in capital of Alpha Corporation after three months of operation is: Question 4. Bijou Corporation issued 200,000 shares of$5 par value common stock at the time of its incorporation. The stock wasissued for cash at a price of $20 per share. During the first year ofoperations, the company sustained a net loss of $100,000. The year-end balancesheet would show the balance of the Common Stock account to be: Question 5. Adella Corporation has outstanding 50,000shares of $1 par value common stock as well as 10,000 shares of 6%, $100 par value cumulative preferred stock. At the beginning of the year, the balance in retained earnings was $500,000, and one year’s dividends were in arrears. Net income for the current year is $260,000. Compute the balance in retained earnings at the end of the year if Adella Corporation pays a dividend of $2 per share on its common stock this year. Question 6 :On January 1, 2002, Moon Corporation issued 80,000 shares ofits total 200,000 authorized shares of $3 par value common stock for $10 per share. On December 31, 2002, Moon Corporation’s common stock is trading at $15 per share.6. Refer to the above data. Assuming Moon Corporation did not issue any more common stock in 2002, how does the increase in value of its outstanding stock affect Moon? Use the following to answerquestions 7 – 10:Shown below is information relating to the stockholders’equity of Surf Corporation as of December 31, 2001: 8% cumulative preferred stock, $100 par,Callable at $106 $200,000Common stock, $10 par, 500,000 sharesAuthorized, 80,000shares issued and outstanding 800,000Additional paid-in capital: common stock 300,000Retained earnings (Deficit) (20,000)Dividends in arrears 16,000 Question 7. Refer to the abovedata. How many shares of preferred stock are issued and outstanding? Question 8. Refer to the above data. What was the original issue price per share of common stock? Question 9. Refer to the above data. Compute total paid-in capital. Question 10. Refer to the above data. Total stockholders’ equity is: Question 11. Which of the following individuals has the most power to influence corporate policy on a long-term basis? Question 12. The overall effect of declaring anddistributing a cash dividend includes each of the following except: Question 13. The financial statements of a corporation that failed during the current year to pay any dividends on its cumulative preferred stock should: Question 14. Which of the following best describes thebook value of a share of stock?
Question 1. On September 1, 2000, Galaxy Corporation’s common stock
was selling at a market price of $150 per share. On that date, Galaxy announced a 3 for 2 stock split. At what price would you expect the stock to trade immediately after the split goes into effect?
Question 2. When
above cost:
Question 3 Alpha Corporation is authorized to issue
2,000,000 shares of $3 par value capital stock. The corporation issued half the stock for cash at $8 per share, earned $90,000 during the first three months of operation, and declared a cash dividend of $15,000. The total paid-in capital of Alpha Corporation after three months of operation is:
Question 4. Bijou Corporation issued 200,000 shares of
$5 par value common stock at the time of its incorporation. The stock was
issued for cash at a price of $20 per share. During the first year of
operations, the company sustained a net loss of $100,000. The year-end balance
sheet would show the balance of the Common Stock account to be:
Question 5. Adella Corporation has outstanding 50,000
shares of $1 par value common stock as well as 10,000 shares of 6%, $100 par value cumulative
Question 6 :
On January 1, 2002, Moon Corporation issued 80,000 shares of
its total 200,000 authorized shares of $3 par value common stock for $10 per share. On December 31, 2002, Moon Corporation’s common stock is trading at $15 per share.
6. Refer to the above data. Assuming Moon Corporation did not issue any more common stock in 2002, how does the increase in value of its outstanding stock affect Moon?
Use the following to answer
questions 7 – 10:
Shown below is information relating to the
equity
8% cumulative preferred stock, $100 par,
Callable at $106 $
200,000
Common stock, $10 par, 500,000 shares
Authorized, 80,000
shares issued and outstanding 800,000
Additional paid-in capital: common stock 300,000
Retained earnings (Deficit) (20,000)
Dividends in arrears 16,000
Question 7. Refer to the above
data. How many shares of preferred stock are issued and outstanding?
Question 8. Refer to the above data. What was the original issue price per share of common stock?
Question 9. Refer to the above data. Compute total paid-in capital.
Question 10. Refer to the above data. Total stockholders’ equity is:
Question 11. Which of the following individuals has the most power to influence corporate policy on a long-term basis?
Question 12. The overall effect of declaring and
distributing a cash dividend includes each of the following except:
Question 13. The financial statements of a corporation that failed during the current year to pay any dividends on its cumulative preferred stock should:
Question 14. Which of the following best describes the
book value of a share of stock?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
