Question 1 (1 point) Powder Corporation declared, but had not yet paid, dividend
ID: 2424142 • Letter: Q
Question
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):
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):
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:
Retained Earnings for $45,000.
Paid-in Capital in Excess of Par - CS for $120,000.
Common Stock Dividends Distributable for $180,000.
Common Stock for $45,000.
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 Cash $900.
debit Cash Dividends $1,200 and credit Dividends Payable $1,200.
debit Cash Dividends $900 and credit Dividends Payable $900.
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:
debit to Paid-in Capital from Treasury Stock for $45,000.
debit to Retained Earnings for $48,000.
credit to Common Stock for $6,000.
credit to Paid-in Capital from Treasury Stock for $6,000.
Question 19 (1 point)
Restrictions of retained earnings:
Question 19 options:
are reported as expenses on the income statement.
do not change total stockholders' equity.
are reported on the balance sheet as liabilities.
provide insurance coverage for contingencies
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.
Question 22 (1 point)
Which of the following may either increase or decrease retained earnings?
Question 22 options:
Disposals of treasury stock.
Net income.
Stock dividends.
Prior period adjustments.
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 and debited for the investor's share of investee net income.
debited for cash dividends received and credited for the investor's share of investee net income.
credited for cash dividends received.
debited for the investor's share of investee net income.
Question 25 (1 point)
The preparation of consolidated financial statements are not useful to:
Question 25 options:
creditors of the company.
the parent company.
the subsidiary company.
only the parent and the subsidiary company
Question 26 (1 point)
The account Unrealized Loss—Income is reported:
Question 26 options:
as a contra account in the stockholders' equity section of the balance sheet.
as a contra account in the current asset section of the balance sheet.
in the other expenses and losses section of the income statement.
in the operating section of the income statement.
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:
$700,000.
$0.
$900,000.
$100,000.
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):
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):
Retained Earnings for $45,000.
Paid-in Capital in Excess of Par - CS for $120,000.
Common Stock Dividends Distributable for $180,000.
Common Stock for $45,000.
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 Cash $900.
debit Cash Dividends $1,200 and credit Dividends Payable $1,200.
debit Cash Dividends $900 and credit Dividends Payable $900.
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:
debit to Paid-in Capital from Treasury Stock for $45,000.
debit to Retained Earnings for $48,000.
credit to Common Stock for $6,000.
credit to Paid-in Capital from Treasury Stock for $6,000.
Question 19 (1 point)
Restrictions of retained earnings:
Question 19 options:
are reported as expenses on the income statement.
do not change total stockholders' equity.
are reported on the balance sheet as liabilities.
provide insurance coverage for contingencies
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.
Question 22 (1 point)
Which of the following may either increase or decrease retained earnings?
Question 22 options:
Disposals of treasury stock.
Net income.
Stock dividends.
Prior period adjustments.
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 and debited for the investor's share of investee net income.
debited for cash dividends received and credited for the investor's share of investee net income.
credited for cash dividends received.
debited for the investor's share of investee net income.
Question 25 (1 point)
The preparation of consolidated financial statements are not useful to:
Question 25 options:
creditors of the company.
the parent company.
the subsidiary company.
only the parent and the subsidiary company
Question 26 (1 point)
The account Unrealized Loss—Income is reported:
Question 26 options:
as a contra account in the stockholders' equity section of the balance sheet.
as a contra account in the current asset section of the balance sheet.
in the other expenses and losses section of the income statement.
in the operating section of the income statement.
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:
$700,000.
$0.
$900,000.
$100,000.
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):
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):
Explanation / Answer
Answer:1 EPS=($90000-$6000)/50000 shares
=$1.68 per share
Answer:6 $0
Answer:10 Retained Earnings for $45,000.
Answer:13 debit Cash Dividends $900 and credit Cash $900.