Ch 15 - ACCT320 Intermediate Accounting II Test II Name...

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ACCT320 Intermediate Accounting II Test II Name: ______________________ ______________________________________________________________________ CHAPTER 15 1. On December 1, 2010, Abel Corporation exchanged xx,000 shares of its $xx par value common stock held in treasury for a used machine. The treasury shares were acquired by Abel at a cost of $xx per share, and are accounted for under the cost method. On the date of the exchange, the common stock had a market value of $xx per share (the shares were originally issued at $xx per share). As a result of this exchange, Abel's total stockholders' equity will increase by a. $xxx,000. b. $xxx,000. c. $x,xxx,000. d. $xxx,000. 2. Hernandez Company has xxx,000 shares of $xx par value common stock outstanding. During the year, Hernandez declared a xx% stock dividend when the market price of the stock was $xx per share. Four months later Hernandez declared a $.xx per share cash dividend. As a result of the dividends declared during the year, retained earnings decreased by a. $x,xxx,x00. b. $xxx,000. c. $xxx,x00. d. $xxx,000. 3. On June 30, 2010, when Ermler Co.'s stock was selling at $xx per share, its capital accounts were as follows: Capital stock (par value $xx; xx,000 shares issued) $x,xxx,000 Premium on capital stock xxx,000 Retained earnings x,xxx,000 If a 100% stock dividend were declared and distributed, capital stock would be a. $x,xxx,000. b. $x,xxx,000. c. $x,xxx,000. d. $x,xxx,000.
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ACCT320 Intermediate Accounting II Test II Page 2 Name: ______________________ ______________________________________________________________________ 4. Stinson Corporation owned xx,000 shares of Matile Corporation. These shares were purchased in 2007 for $xxx,000. On November 15, 2011, Stinson declared a property dividend of xxx share of Matile for every xxx shares of Stinson held by a stockholder. On that date, when the market price of Matile was $xx per share, there were xxx,000 shares of Stinson outstanding. What gain and net reduction in retained earnings would result from this property dividend? Gain Net Reduction in Retained Earnings a. $xxx $xxx,000 b. $xxx $xxx,000 c. $xxx,000 $xxx,000 d. $xxx,000 $243,000 5. Written, Inc. has outstanding xxx,000 shares of $x par common stock and xx,000 shares of no-par x% preferred stock with a stated value of $x. The preferred stock is cumulative and nonparticipating. Dividends have been paid in every year except the past xxxx years and the current year. Assuming that $xxx,000 will be distributed as a dividend in the current year, how much will the common stockholders receive? a.
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This note was uploaded on 03/01/2011 for the course ACCT 320 taught by Professor Bell during the Spring '11 term at Penn State.

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Ch 15 - ACCT320 Intermediate Accounting II Test II Name...

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