CHAPTER 11
Reporting and Analyzing Stockholders’ Equity
Study Objectives
1.
Identify and discuss the major characteristics of a corporation.
2.
Record the issuance of common stock.
3.
Explain the accounting for the purchase of treasury stock.
4.
Differentiate preferred stock from common stock.
5.
Prepare the entries for cash dividends and understand the effect of stock dividends and stock splits.
6.
Identify the items that affect retained earnings.
7.
Prepare a comprehensive stockholders’ equity section.
8.
Evaluate a corporations’ dividend and earnings performance from a stockholder’s perspective.
Summary of Questions by Study Objectives and Bloom’s Taxonomy
Item
SO
BT
Item
SO
BT
Item
SO
BT
Item
SO
BT
Item
SO
BT
Questions
1.
1
C
6.
2
K
11.
4
C
16.
5
C
21.
8
C
2.
1
C
7.
2, 3
AP
12.
6
C
17.
5
C
22.
8
C
3.
1
C
8.
2
C
13.
7
C
18.
5
C
23.
8
C
4.
1
K
9.
3
C
14.
5
K
19.
5
C
24.
8
C
5.
1
K
10.
3
C
15.
5
C
20.
6
C
25.
8
C
Brief Exercises
1.
1
K
4.
4
AP
6.
5
AP
8.
7
AP
10.
8
AP
2.
2
AP
5.
5
AP
7.
5
K
9.
8
C
11.
9*
AP
3.
2
AP
Exercises
1.
2
AP
4.
2, 3,
6.
5
AP
10.
7
AP
14.
9*
AP
2.
2, 3,
4, 7
C
7.
5
AP
11.
8
AP
4
AP
5.
2, 3,
8.
7
AP
12.
8
AP
3.
4, 7
AP
4
AN
9.
7
AP
13.
8
AN
Problems: Set A
1.
2, 4,
2.
2, 3,
3.
7
AP
5.
2, 3,
7.
8
AP
7
AN
5, 7,
4.
5, 6,
4, 7
AP
8.
5, 7,
8
AP
7
AP
6.
7
AP
8, 9*
AP
Problems: Set B
1.
2, 4,
2.
2, 3,
3.
7
AP
5.
3, 7
AP
8.
5, 7,
7
AN
5, 7,
4.
5, 6,
6.
7
AP
8, 9*
AP
8
AP
7
AP
7.
8
AP
11-1