Homework Answers
Question 8
Correct answer---(c) within one year or within the operating cycle, whichever is longer.
.
Current liabilities are generally paid off in operating cycle or 1 year otherwise liability would be considered as long term liability.
Question 9
Correct answer----(b) Dividends payable
Dividends payable is a current liability instead of shareholder’s equity. Dividends payable is already adjusted with retained earnings.
Question 10
Correct answer---- (a) Maximum number of shares that can be issued.
Authorized capital is assigned at the time of creation of company, Shares issued cannot be more than authorized shares . Although authorized shares can be increased if management wish to by resolution.
Question 11
Correct answer----(d) Revenue of al past years of operations.
All profits are accumulated in retained earnings. Dividends are paid out of retained earnings but this does not means all retained earnings are cash available for dividends.
Question 12
Correct answer----(b) There is no effect on total owner’s equity.
The number of shares doubles but the value of share becomes half so the effect on total value of equity remains the same. Say share of $10 split into 2 shares of $5 , the total value is still $10 (2 x $5)
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Styles Paragraph 8. Current liabilities are defined as those liabilities which will be satisied a. by...
The Holtzman Corporation has assets of $452,000, current liabilities of $93,000, and long-term liabilities of $137,000....
The Holtzman Corporation has assets of $452,000, current liabilities of $93,000, and long-term liabilities of $137,000. There is $33,800 in preferred stock outstanding; 20,000 shares of common stock have been issued. a. Compute book value (net worth) per share. (Round your answer to 2 decimal places.) Book value per share b. If there is $30,900 in earnings available to common stockholders, and Holtzman's stock has a P/E of 20 times earnings per share, what is the current price of the...
Question 8 Your answer is partially correct. A current liability is a debt that can be...
Question 8 Your answer is partially correct. A current liability is a debt that can be expected to be paid within| year(s) or the operating cycle whichever is longer. eTextbook and Media On October 31, the stockholders equity section of Sunland Company's balance sheet consists of common stock $ 696,000 and retained earnings $ 397,000. Sunland is considering the following two courses of action (1) (2) Declaring a 5% stock dividend on the 87,000 $ 8 par value shares outstanding...
Davidson Corporation: Balance Sheet as of December 31, 2019 (Millions of Dollars) Liabilities and Equity Assets...
Davidson Corporation: Balance Sheet as of December 31, 2019 (Millions of Dollars) Liabilities and Equity Assets 130 $ 10 Accounts payable Cash and equivalents 270 575 Accruals Accounts receivable 215 820 Notes payable Inventories 615 $ Total current liabilities $1,405 Total current assets 1,490 2,360 Long-term bonds Net plant and equipment $ 2,105 Total liabilities 260 Common stock (100 million shares) 1,400 Retained earnings 1,660 Common equity $3,765 $3,765 Total liabilities and equity Total assets Davidson Corporation: Income Statement for...
28. On May 1, 2010, ROK Corporation had 400,000 shares of $30 par value common stock outstanding,...
28. On May 1, 2010, ROK Corporation had 400,000 shares of $30 par value common stock outstanding, with a market value of $90 per share. On May 2, 2010, ROK announced a 3-for-1 stock split. After the split, what was the par value of the stock? a. $10 b. $20 c. $30 d. $90 29. Which of the following statements is TRUE? a. Stock Splits decrease total stockholders' equity b. Cash Dividends decrease total Stockholders' Equity c. Stock Dividends decrease total Stockholders' Equity d. All of...
For December 31, 20X1, the balance sheet of Baxter Corporation was as follows Current Assets Liabilities...
For December 31, 20X1, the balance sheet of Baxter Corporation was as follows Current Assets Liabilities Cash Accounts receivable Inventory Prepaid expenses $ 22,000 30,000 60,000 S 20,000 Accounts payable 25,000 Notes payable 35,000 Bonds payable 13,000 Fixed Assets Stockholders' Equity $ 30,000 65,000 35,000 59,000 $301,000 Gross plant and equipment Less: Accumulated depreciation $ 260,000 Preferred stock 52,000 Common stock SA Paid in Capital $ 208,000Retained earnings Net plant and equipment Total assets 301,000 Total liabilities and stockholders' equity...
Which of the following does not accurately describe Total Stockholder’s Equity? Represents the portion of business...
Which of the following does not accurately describe Total Stockholder’s Equity? Represents the portion of business assets not claimed by creditors Represents the value of ownership for stockholders Includes common stock and retained earnings Represents how much capital has been generated through issuance of stock All of the following accurately describe retained earnings except… The portion of total equity that is earned through profitable operations The accumulation of undistributed net income The portion of equity that is generated through issuing...
he effects of the entry to record the declaration of the dividend on June 14, 2016...
he effects of the entry to record the declaration of the dividend on June 14, 2016 a. decrease stockholders' equity and increase liabilities. increase stockholders' equity and increase liabilities. decrease stockholders' equity and decrease assets d. C. increase stockholders' equity and decrease assets. When common stock is issued by a corporation for a cash price above par value, t over the par value should be reported in the financial statements as a component of retained earnings on the balance sheet....
Problem 15-8 Sheridan Company provides you with the following condensed balance sheet information: Assets Current assets...
Problem 15-8 Sheridan Company provides you with the following condensed balance sheet information: Assets Current assets $ 37,600 Equity investments 58,800 Equipment (net) 248,300 Intangibles 59,800 Total assets $404,500 Liabilities and Stockholders’ Equity Current and long-term liabilities $107,900 Stockholders’ equity Common stock ($5 par) $ 20,800 Paid-in capital in excess of par 117,100 Retained earnings 158,700 296,600 Total liabilities and stockholders’ equity: $404,500 For each transaction below, indicate the dollar impact (if any) on the following five items: (1) total...
please need it MULTIPLE CHOICE. (4 points each) Choose the one alternative that best completes the...
please need it
MULTIPLE CHOICE. (4 points each) Choose the one alternative that best completes the statement or answer the question. 1) A liquidating dividend: A) Represents a distribution of a corporation's profits to the stockholders. B) Occurs whenever a corporation distributes non-cash assets as a dividend to its stockholders C) Occurs when a corporation distributes shares of its own stock as a dividend rather than cash D) Represents a return of invested capital to a corporation's owners, the stockholders...
Correction to retained earnings for an error made in a previous accounting period Credited when dividends...
Correction to retained earnings for an error made in a previous accounting period Credited when dividends are declared, but will be paid at a later date Basic ownership of corporation Authorized stock 1. Receives dividends before 5 common stock Issued stock 2 Distribution of earnings 6 Outstanding stock 3. Common stock The price at which the stock is bought and sold 4. Preferred stock 5 Amounts received from investors in exchange for stock Dividend 6 The amount of net income...
The Holtzman Corporation has assets of $452,000, current liabilities of $93,000, and long-term liabilities of $137,000. There is $33,800 in preferred stock outstanding; 20,000 shares of common stock have been issued. a. Compute book value (net worth) per share. (Round your answer to 2 decimal places.) Book value per share b. If there is $30,900 in earnings available to common stockholders, and Holtzman's stock has a P/E of 20 times earnings per share, what is the current price of the...
Question 8 Your answer is partially correct. A current liability is a debt that can be expected to be paid within| year(s) or the operating cycle whichever is longer. eTextbook and Media On October 31, the stockholders equity section of Sunland Company's balance sheet consists of common stock $ 696,000 and retained earnings $ 397,000. Sunland is considering the following two courses of action (1) (2) Declaring a 5% stock dividend on the 87,000 $ 8 par value shares outstanding...
Davidson Corporation: Balance Sheet as of December 31, 2019 (Millions of Dollars) Liabilities and Equity Assets 130 $ 10 Accounts payable Cash and equivalents 270 575 Accruals Accounts receivable 215 820 Notes payable Inventories 615 $ Total current liabilities $1,405 Total current assets 1,490 2,360 Long-term bonds Net plant and equipment $ 2,105 Total liabilities 260 Common stock (100 million shares) 1,400 Retained earnings 1,660 Common equity $3,765 $3,765 Total liabilities and equity Total assets Davidson Corporation: Income Statement for...
For December 31, 20X1, the balance sheet of Baxter Corporation was as follows Current Assets Liabilities Cash Accounts receivable Inventory Prepaid expenses $ 22,000 30,000 60,000 S 20,000 Accounts payable 25,000 Notes payable 35,000 Bonds payable 13,000 Fixed Assets Stockholders' Equity $ 30,000 65,000 35,000 59,000 $301,000 Gross plant and equipment Less: Accumulated depreciation $ 260,000 Preferred stock 52,000 Common stock SA Paid in Capital $ 208,000Retained earnings Net plant and equipment Total assets 301,000 Total liabilities and stockholders' equity...
he effects of the entry to record the declaration of the dividend on June 14, 2016 a. decrease stockholders' equity and increase liabilities. increase stockholders' equity and increase liabilities. decrease stockholders' equity and decrease assets d. C. increase stockholders' equity and decrease assets. When common stock is issued by a corporation for a cash price above par value, t over the par value should be reported in the financial statements as a component of retained earnings on the balance sheet....
please need it
MULTIPLE CHOICE. (4 points each) Choose the one alternative that best completes the statement or answer the question. 1) A liquidating dividend: A) Represents a distribution of a corporation's profits to the stockholders. B) Occurs whenever a corporation distributes non-cash assets as a dividend to its stockholders C) Occurs when a corporation distributes shares of its own stock as a dividend rather than cash D) Represents a return of invested capital to a corporation's owners, the stockholders...
Correction to retained earnings for an error made in a previous accounting period Credited when dividends are declared, but will be paid at a later date Basic ownership of corporation Authorized stock 1. Receives dividends before 5 common stock Issued stock 2 Distribution of earnings 6 Outstanding stock 3. Common stock The price at which the stock is bought and sold 4. Preferred stock 5 Amounts received from investors in exchange for stock Dividend 6 The amount of net income...
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