64 gordon corporation reported the following equity section on its current balance s 4306975

64 gordon corporation reported the following equity section on its current balance s 4306975

64) Gordon Corporation reported the following equity section on its current balance sheet. The common stock is currently selling for $11.50 per share.

Common stock, $5 par, 190,000 shares authorized, 140,000 shares issued

$700,000

Paid-in capital in excess of par—Common

120,000

Retained earnings

290,000

Total stockholders' equity

$1,110,000

What will the total number of shares issued be after the declaration and distribution of a 10% stock dividend?

A) 20,000 common shares

B) 154,000 common shares

C) 140,000 common shares

D) 14,000 common shares

65) Gordon Corporation reported the following equity section on its current balance sheet. The common stock is currently selling for $11.50 per share.

Common stock, $5 par, 190,000 shares authorized, 140,000 shares issued

$700,000

Paid-in capital in excess of par—Common

120,000

Retained earnings

290,000

Total stockholders' equity

$1,110,000

After a 2-for-1 stock split, what would be the number of issued shares?

A) 240,000

B) 280,000

C) 260,000

D) 120,000

66) Which of the following is a true statement?

A) Both a stock split and a stock dividend will decrease total assets.

B) Both a stock split and a stock dividend will increase total liabilities.

C) A stock split will increase total assets, but a stock dividend will not.

D) Neither a stock split nor a stock dividend will affect total assets or total liabilities.

67) Which of the following requires a formal journal entry?

A) new CEO selected

B) stock dividend distribution

C) stock split

D) CFO promoted

68) Apira has 2,000 shares of common stock outstanding. A stockholder has 100 shares. If Apira distributes a 20% stock dividend, how many shares of Apira will the stockholder have?

A) 120

B) 400

C) 100

D) 20

69) ABC has 45,000 shares of $10 par common stock outstanding. They offer a stock split of 4-for-1. The effect of the split will be:

A) par stays at $10; total shares go to 11,250.

B) par drops to $5; total shares stay at 45,000.

C) par drops to $2.50; total shares go to 180,000.

D) par goes to $40; total shares go to 180,000.

70) Which of the following actions will increase the balance in the Common Stock account?

A) cash dividend declared and paid

B) stock split

C) stock dividend declared and distributed

D) purchase of treasury stock

71) Which of the following actions could increase the balance in the Paid-In Capital in Excess of Par—Common Account?

A) cash dividend declared

B) stock split

C) 10% stock dividend declared

D) purchase of treasury stock

72) Which of the following will decrease the balance in Retained Earnings?

A) repayment of bond principal

B) stock split

C) stock dividend declared

D) purchase of treasury stock

73) Which of the following will decrease the amount of Total Stockholders' Equity?

A) cash dividend declared

B) stock split

C) stock dividend declared

D

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