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

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
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.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
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.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 6

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

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online