Question 1 (1 point) Powder Corporation declared, but had not yet paid, dividend

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Question 1 (1 point)

Powder Corporation declared, but had not yet paid, dividends on the 10,000 shares of 6%, $10 par value cumulative preferred stock it had outstanding for the year. The weighted average number of common shares outstanding and net income for the year were 50,000 shares and $90,000, respectively. Earnings per share equals (do not show your work; just enter your answer):

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Question 2 (1 point)

Oceanview Wholesale Merchandise had 20,000 shares of 6%, $20 par value preferred stock and 15,000 shares of $25 par value common stock outstanding throughout 2014. Assuming that total dividends declared in 2014 were $25,000 and that the preferred stock is not cumulative, common stockholders should receive total 2014 dividends of (do not show your work; just enter your answer):

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Question 3 (1 point)

Oceanview Wholesale Merchandise had 20,000 shares of 6%, $20 par value preferred stock and 15,000 shares of $25 par value common stock outstanding throughout 2014. Assuming that total dividends declared in 2014 were $80,000 and that the preferred stock is cumulative with two years' preferred dividends in arrears on December 31, 2013, the preferred stockholders should receive 2014 dividends totaling (do not show your work; just enter your answer):

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Question 4 (1 point)

Oceanview Wholesale Merchandise had 20,000 shares of 6%, $20 par value preferred stock and 15,000 shares of $25 par value common stock outstanding throughout 2014. Assuming that total dividends in 2014 were $35,000 and that the preferred stock is cumulative with one year's preferred dividends in arrears on December 31, 2013, the preferred stockholders should receive 2014 dividends totaling (do not show your work; just enter your answer):

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Question 5 (1 point)

Oceanview Wholesale Merchandise had 20,000 shares of 6%, $20 par value preferred stock and 15,000 shares of $25 par value common stock outstanding throughout 2014. Assuming that total dividends declared in 2014 were $45,000, that the cumulative preferred stock was issued on January 1, 2013, and that $10,000 of preferred dividends were declared and paid in 2013, the common stockholders should receive 2014 dividends totaling (do not show your work; just enter your answer):

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Question 6 (1 point)

Oceanview Wholesale Merchandise had 20,000 shares of 6%, $20 par value preferred stock and 15,000 shares of $25 par value common stock outstanding throughout 2014. Assuming that total dividends declared in 2014 were $60,000 and that the cumulative preferred stock dividends have not been paid after 2012, the common stockholders should receive total 2014 dividends of (do not show your work; just enter your answer):

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Question 7 (1 point)

Oceanview Wholesale Merchandise had 20,000 shares of 6%, $20 par value preferred stock and 15,000 shares of $25 par value common stock outstanding throughout 2014. Assuming that the total dividends declared in 2014 were $190,000 and that the cumulative preferred stock received dividends in the following manner: In full up to 2010, $18,000 in 2011, $4,000 in 2012, and $15,000 in 2013; common stockholders should receive total 2014 dividends of (do not show your work; just enter your answer):

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Question 8 (1 point)

Restrictions of retained earnings may result from each of the following except:

Question 8 options:

voluntary restrictions.

prior period adjustment restrictions.

contractual restrictions.

legal restrictions.

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Question 9 (1 point)

Tina Corporation issued 4,000 shares of $10 par value common stock in exchange for a truck. The truck had a fair market value of $65,000. The entry to record this transaction includes a credit to Paid-in Capital in Excess of Par - CS for:

Question 9 options:

$25,000.

$40,000.

$65,000.

$20,000.

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Question 10 (1 point)

Trinity Manufacturing declared a 10% stock dividend when it had 150,000 shares of $3 par value common stock outstanding. The market price per common share was $11 per share when the dividend was declared. The entry to record this dividend declaration includes a credit to:

Question 10 options:

Common Stock Dividends Distributable for $180,000.

Paid-in Capital in Excess of Par - CS for $120,000.

Common Stock for $45,000.

Retained Earnings for $45,000.

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Question 11 (1 point)

Arthur Company paid $39,000 to buy 3,000 shares of its $5 par value common stock for the treasury. The stock was originally sold for $27,000. The entry to record the purchase includes a:

Question 11 options:

credit to Treasury Stock for $27,000.

debit to Treasury Stock for $15,000.

credit to Common Stock for $27,000.

debit to Treasury Stock for $39,000.

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Question 12 (1 point)

The officer who is responsible for maintaining the company's cash position is the:

Question 12 options:

treasurer.

vice-president of finance.

controller.

president.

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Question 13 (1 point)

Hallery Corporation issued 600 shares of 10% $15 par convertible preferred stock for $12,000. The entry to record the declaration of the annual cash dividend is:

Question 13 options:

debit Cash Dividends $1,200 and credit Cash $1,200.

debit Cash Dividends $900 and credit Dividends Payable $900.

debit Cash Dividends $900 and credit Cash $900.

debit Cash Dividends $1,200 and credit Dividends Payable $1,200.

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Question 14 (1 point)

The purchase of treasury stock:

Question 14 options:

decreases total assets and increases total stockholders' equity.

decreases total assets and decreases total stockholders' equity.

increases total assets and increases total stockholders' equity.

increases total assets and decreases total stockholders' equity.

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Question 15 (1 point)

The resale of treasury stock for an amount greater than its cost:

Question 15 options:

increases total assets and decreases total stockholders' equity.

decreases total assets and increases total stockholders' equity.

increases total assets and increases total stockholders' equity.

increases net income.

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Question 16 (1 point)

Each of the following decreases retained earnings except:

Question 16 options:

large stock dividends.

small stock dividends.

stock splits.

cash dividends.

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Question 17 (1 point)

Treasury stock is reported in the balance sheet as a deduction from:

Question 17 options:

retained earnings.

paid-in capital and retained earnings.

capital stock.

additional paid-in capital.

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Question 18 (1 point)

Watkins, Inc. paid $48,000 to buy back 9,000 shares of its $1 par value common stock. This stock was sold later at a selling price of $6 per share. The entry to record the sale includes a:

Question 18 options:

credit to Paid-in Capital from Treasury Stock for $6,000.

credit to Common Stock for $6,000.

debit to Retained Earnings for $48,000.

debit to Paid-in Capital from Treasury Stock for $45,000.

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Question 19 (1 point)

Restrictions of retained earnings:

Question 19 options:

do not change total stockholders' equity.

provide insurance coverage for contingencies.

are reported as expenses on the income statement.

are reported on the balance sheet as liabilities.

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Question 20 (1 point)

Ownership of common stock ordinarily carries the right to:

Question 20 options:

establish a drawing account.

vote on corporate actions that require stockholder approval.

declare dividends.

enter into contracts for the corporation.

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Question 21 (1 point)

A corporation is formed when:

Question 21 options:

it is granted by-laws by the federal government.

it borrows money.

it receives a charter from its president.

None of the other choices are correct.

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Question 22 (1 point)

Which of the following may either increase or decrease retained earnings?

Question 22 options:

Stock dividends.

Net income.

Disposals of treasury stock.

Prior period adjustments.

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Question 23 (1 point)

Common Stock Dividends Distributable is reported in the balance sheet:

Question 23 options:

in paid-in capital as an addition to common stock issued.

as a liability.

as an addition to retained earnings.

as an asset.

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Question 24 (1 point)

Under the equity method of accounting, the investment in common stock is initially recorded at cost and the investment account is subsequently:

Question 24 options:

credited for cash dividends received.

debited for cash dividends received and credited for the investor's share of investee net income.

credited for cash dividends received and debited for the investor's share of investee net income.

debited for the investor's share of investee net income.

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Question 25 (1 point)

The preparation of consolidated financial statements are not useful to:

Question 25 options:

only the parent and the subsidiary company.

the parent company.

creditors of the company.

the subsidiary company.

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Question 26 (1 point)

The account Unrealized Loss—Income is reported:

Question 26 options:

as a contra account in the current asset section of the balance sheet.

as a contra account in the stockholders' equity section of the balance sheet.

in the other expenses and losses section of the income statement.

in the operating section of the income statement.

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Question 27 (1 point)

The cost method of accounting for long-term investments in common stock is typically used when the investor:

Question 27 options:

has a controlling interest.

recognizes any goodwill when preparing consolidated financial statements.

owns between 20% and 50% of the investee's outstanding common stock.

owns less than 20% of the investee's common stock.

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Question 28 (1 point)

Dior Manufacturing purchased 100% of Venus, Inc. common stock for $900,000 when Venus had stockholders' equity consisting of $400,000 of common stock and $300,000 of retained earnings. In the consolidated balance sheet, Dior's investment in Venus will be shown at:

Question 28 options:

$0.

$700,000.

$900,000.

$100,000.

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Question 29 (1 point)

At the end of its first year, the trading securities portfolio consisted of the following common stocks:

The unrealized loss to be recognized under the fair value method is:

Question 29 options:

$7,000.

$10,900.

$9,300.

$16,300.

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Question 30 (1 point)

Willow Corporation purchased 2,000 shares of Apex common stock at $70 per share plus $4,000 brokerage fees as a short-term investment. The shares were subsequently sold at $80 per share less $4,800 brokerage fees. The cost of the securities purchased and gain or loss on the sale were:

Question 30 options:

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Question 31 (1 point)

Adam Corporation purchased 3,000 shares of Ozark Company's common stock for $12 per share as a long-term available-for-sale investment on June 30, 2014. Ozark declared and paid a cash dividend of $1.00 per share on its common stock on September 30, and had a closing fair value of $18 per share on December 31. Assuming this investment is appropriately accounted for using the fair value method, it will increase Adam's 2014 income before taxes by (do not show your work; just enter your answer):

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Question 32 (1 point)

Clayton Inc. purchased 30% of the outstanding common stock of Austin Industries on January 1, 2014, for $180,000. Austin reported net income of $70,000 for 2014 and declared and paid cash dividends on common stock of $30,000. The amount of Clayton's investment in Austin on December 31, 2014, should be (do not show your work; just enter your answer):

Question 32 options:

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Question 33 (1 point)

Pacific Company bought 35% of the outstanding common stock of Atlantic Inc. on January 1, 2014, for $400,000. Atlantic reported net income of $200,000 for 2014 and declared and paid no dividends for the year. This investment was sold for $500,000 on December 31, 2014. Pacific should report a gain on sale of this investment on its 2014 income statement of (do not show your work; just enter your answer):

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Question 34 (1 point)

Copper Inc. accounts for its investment in Ridge Corporation using the fair value method. Copper bought 3,000 shares (5%) of Ridge's outstanding common stock for $28 per share on January 1, 2014. Ridge earned $3 per share for 2014, declared and paid cash dividends of $1 per common share, and had a closing fair value of $24 per share on December 31. The reported balance sheet value of Copper's investment in Ridge at December 31, 2014 is (do not show your work; just enter your answer):

Question 34 options:

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Explanation / Answer

Answer:1 Earning Per share=Net Income - Preferred Dividend/Weighted Average Number of Common Shares

=(90000-60000)/50000 share

=$0.6 per share

Answer:2 $1000

Answer:3 $72000

Answer:4 $35000

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