ACCT 1209 Lecture Notes - Lecture 29: Retained Earnings
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QUESTION 1
Probably the most basic right of a stockholder is the rightto:
A. | receive an assured dividend each year. | |
B. | serve as a director of the organization. | |
C. | vote at stockholders' meetings. | |
D. | receive at least his or her initial investment uponliquidation |
4
The three significant cash dividend dates are the date ofdeclaration, date of record, and date of payment.
True
False
QUESTION 3
The price-earnings ratio is computed by dividing the currentmarket price per share of common stock by earnings per share.
True
False
5
The three significant cash dividend dates are (in order) thedates of:
A. | declaration, distribution, and payment. | |
B. | record, distribution, and payment. | |
C. | declaration, record, and distribution. | |
D. | declaration, record, and payment |
6
The date of record follows the date of the declaration of adividend.
True
False
7
The amount of prior unpaid dividends is only important if thepreferred stock is:
A. | noncumulative and convertible. | |
B. | noncumulative and callable. | |
C. | noncumulative. | |
D. | cumulative |
8
The number of outstanding shares of stock is the:
A. | number authorized but not yet issued. | |
B. | number issued to the original incorporates. | |
C. | number issued and currently held by stockholders. | |
D. | total number issued. |
9
Treasury stock is stock that:
A. | is apportioned to cover special projects such as theconstruction of a new building. | |
B. | has never been issued. | |
C. | has been issued but was reacquired by the corporation. | |
D. | must be offered to existing stockholders first in amountsproportional to their shareholdings of the issuer's stock. |
Match the items below by entering the appropriate answer letter choice from the column provided on the right.
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The annual report for Sneer Corporation disclosed that thecompany declared and paid preferred dividends in the amount of$290,000 in the current year. It also declared and paid dividendson common stock in the amount of $1.10 per share. During thecurrent year, Sneer had 1 million common shares authorized; 490,000shares had been issued; and 271,000 shares were in treasury stock.The opening balance in Retained Earnings was $710,000 and NetIncome for the current year was $210,000. Prepare journal entries to record the declaration, and payment,of dividends on (a) preferred and (b) commonstock. (If no entry is required for a transaction/event,select "No Journal Entry Required" in the first accountfield.) 1. Record the declaration of a cash dividend of $290,000 to thepreferred stockholders. 2. Record the payment of the cash dividend to the preferredstockholders. 3. Record the declaration of a cash dividend of $1.10 per share tothe common stockholders payable on the shares outstanding. 4. Record the payment of the cash dividend to the commonstockholders. |