1 Cash dividends on the 10 par value common stock #2542

1. Cash dividends on the $10 par value common stock of Garrett Company were as follows:1st
quarter of 2016 ...... $ 800,0002nd quarter of 2016 ...... 900,0003rd quarter of 2016 ......
1,000,0004th quarter of 2016 ...... 1,100,000The 4th-quarter cash dividend was declared on
December 21, 2016, to shareholders of record on December 31, 2016. Payment of the 4th
quarter cash dividend was made on January 18, 2017. In addition, Garrett declared a 5% stock
dividend on its $10 par value common stock on December 3, 2016, when there were 300,000
shares issued and outstanding and the market value of the common stock was $20 per share.
The shares were issued on December 24, 2016. What was the effect on Garrett’s
shareholders’ equity accounts as a result of the preceding transactions?2. A prior period
adjustment should be reflected of applicable income taxes, in the financial statements of a
business entity in the:a. Retained earnings statement after net income but before dividendsb.
Retained earnings statement as an adjustment of the opening balancec. Income statement after
income from continuing operationsd. Income statement as part of income from continuing
operations3. Prince Corporation’s accounts provided the following information at December 31,
2016:Total income since incorporation .......... $840,000Total cash dividends paid ............
260,000Total value of stock dividends distributed ...... 60,000Additional paid-in capital from
treasury stock .... 140,000What should be the current balance of retained earnings?a.
$520,000b. $580,000c. $610,000d. $670,0004. Effective May 1, the shareholders of Baltimore
Corporation approved a 2-for-l split of the company’s common stock and an increase in
authorized common shares from 100,000 shares (par value $20 per share) to 200,000 shares
(par value $10 per share). Baltimore’s shareholders’ equity items immediately before issuance
of the stock split shares were as follows:What should be the balances in Baltimore's .Additional
Paid in Capital and Retained Earnings accounts immediately after the stock split is effected?5.
Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of
$10 par value common stock at $15 per share. During the period January 1, 2014, through
December 31, 2016, Kent reported net income of $750,000 and paid cash dividends of
$380,000. On January' 5, 2016, Kent purchased 12,000 shares of its common stock at $12 per
share. On December 28, 2016, 8,000 treasury' shares were sold at $8 per share. Kent used the
cost method of accounting for treasury' shares. What is Kent’s total shareholders’ equity as of
December 31, 2016?a. $3,290,000b. $3,306,000c. $3,338,000d. $3,370,0006. For purposes of
computing the weighted average number of shares outstanding during the year, a midyear
event that must be treated as occurring at the beginning of the year is the:a. Issuance of stock
warrantsb. Purchase of treasury stockc. Sale of additional common stockd. Declaration and
issuance of a stock dividend7. In determining basic earnings per share, dividends on
nonconvertible cumulative preferred stock should be:a. Deducted from net income only if
declaredb. Deducted from net income whether declared or notc. Added back to net income
whether declared or notd. Disregarded8. Hyde Corporation's capital structure at December 31,
2015, was as follows:Shares Issued and OutstandingCommon stock .......
100,000Nonconvertible preferred stock ... 20,000On July 2, 2016, Hyde issued a Mi stock
dividend on its common stock and paid a cash dividend of $2.00 per share on its preferred
stock. Net income for the year ended December 31, 2016, was $780,000. What should be
Hyde’s 2016 basic earnings per share?a. $7.80b. $7.09c. $7.68d. $6.739. Iredell Company has
2,500,000 shares of common LO 16.5 stock outstanding on December 31, 2015. An additional
500,(XX) shares of common stock were issued on April 2, 2016, and 250,000 more on July 2,

1/2
 2016. On October 1, 2016, Iredell issued 5,000, $1,000 face value, 7% convertible bonds. Each
bond is dilutive and convertible into 40 shares of common stock. No bonds were converted into
common stock in 2016. What is the number of shares to be used in computing basic earning?
Per share and diluted earnings per share, respectively, for the war ended December 31,
2016?a. 2,875,000 and 2,925,000b. 2,875,000 and 3,075,000c. 3,000,000 and 3,050,000d.
3,000,000 and 3,200,00010. At December 31, 2016, Talbot Corporation had 90,000 shares of
common stock and 20,000 shares of convertible preferred stock outstanding, in addition to 9%
convertible bonds payable in the face amount of $2,000,000. During 2016, Talbot paid
dividends of $2.50 per share on the preferred stock. The preferred stock is convertible into
20,000 shares of common stock. The 9% convertible bonds are convertible into 30,000 shares
of common stock. Net income for 2016 was $970,000. Assume an income tax rate of 30%. How
much is the diluted earnings per share for the year ended December 31, 2016?a. $7.83b.
$8.82c. $9.35d. $10.22View Solution:
1 Cash dividends on the 10 par value common stock

ANSWER
http://paperinstant.com/downloads/1-cash-dividends-on-the-10-par-value-common-stock/

2/2
Powered by TCPDF (www.tcpdf.org)