Question : 111. A company paid $0.75 in cash dividends per share. Its : 1225258

Accounting

111. A company paid $0.75 in cash dividends per share. Its earnings per share is $3.50, and its market price per share is $37.50. Its dividend yield equals:

A. 4.7%.

B. 2.0%.

C. 9.3%.

D. 21.4%.

E. 46.7%.

112. Book value per share:

A. Reflects the value per share if a company is liquidated at balance sheet amounts.

B. Is assets divided by equity.

C. Is assets divided by the number of common shares outstanding.

D. Measures the worth of assets.

E. Is equal to par value per share.

113. Book value per common share is computed by:

A. Multiplying the number of common shares outstanding times the market price per common share.

B. Dividing total assets by the number of shares outstanding.

C. Dividing stockholders’ equity applicable to common shares by the number of common shares outstanding.

D. Multiplying the number of common shares outstanding by par value per share.

E. Dividing the number of common shares outstanding by stockholders’ equity applicable to common shares.

114. A company has 40,000 shares of common stock outstanding. The stockholders’ equity applicable to common shares is $470,000, and the par value per common share is $10. The book value per share is:

A. $0.09.

B. $1.75.

C. $10.00.

D. $11.75.

E. $47.50.

115. Book value per share is often used as a starting point for:

A. Stock valuation models.

B. Merger negotiations.

C. Price setting for public utilities.

D. Loan contracts.

E. All of these.

116. A company has 1,000 shares of $100 par preferred stock. It also has 25,000 shares of common stock outstanding, and its total stockholders’ equity equals $500,000. The book value per common share is:

A. $15.38.

B. $16.00.

C. $19.96.

D. $20.00.

E. $100.00.

117. A company has 500 shares of $50 par value preferred stock outstanding, and the call price of its preferred stock is $60 per share. It also has 20,000 shares of common stock outstanding, and the total value of its stockholders’ equity is $680,000. The company’s book value per common share equals:

A. $31.71.

B. $32.50.

C. $32.75.

D. $33.17.

E. $60.00.

118. The Discount on Common Stock account reflects:

A. The difference between the par value of stock and its issue price when it is issued at a price below par value.

B. One share’s portion of the issued corporation’s net assets recorded in its accounts.

C. The difference between the par value of the stock and the amount paid-in by stockholders when the amount paid-in is more than par value.

D. An amount of assets defined by state law that stockholders must invest and leave invested in a corporation.

E. The amount a corporation must pay in addition to dividends in arrears if and when it exercises its right to retire a share of callable preferred stock.

119. A corporation was formed on January 1. The corporate charter authorized 100,000 shares of $10 par value common stock. During the first month of operation, the corporation issued 300 shares to its attorneys in payment of a $5,000 charge for drawing up the articles of incorporation. The entry to record this transaction would include:

A. A debit to Organization Expenses for $3,000.

B. A debit to Organization Expenses for $5,000.

C. A credit to Common Stock for $5,000.

D. A credit to Paid-in Capital in Excess of Par Value, Common Stock for $5,000.

E. A debit to Paid-in Capital in Excess of Par Value, Common Stock for $2,000.

120. A corporation sold 14,000 shares of its $10 par value common stock at a cash price of $13 per share. The entry to record this transaction would include:

A. A debit to Paid-in Capital in Excess of Par Value, Common Stock for $42,000.

B. A debit to Cash for $140,000.

C. A credit to Common Stock for $182,000.

D. A credit to Common Stock for $140,000.

E. A credit to Paid-in Capital in Excess of Par Value, Common Stock for $182,000.

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July 1, 2023

11) Net income appears on the worksheet:

A) only in the balance sheet credit column.

B) only in the income statement credit column

C) in the income statement debit column and balance sheet debit column

D) in the income statement debit column and balance sheet credit column

12) Net loss appears on the worksheet:

A) in the income statement credit column and balance sheet debit column.

B) only in the income statement credit column.

C) in the income statement debit column and balance sheet credit column.

D) only in the balance sheet debit column.

13) The prepaid rent account has a balance that is $400 less in the worksheet's balance sheet debit column than in the worksheet's trial balance debit column. This would be the result of a:

A) $400 entry to prepaid rent in the worksheet's adjustments debit column.

B) $400 entry to prepaid rent in the worksheet's adjustments credit column.

C) $400 entry to rent expense in the worksheet's adjustments credit column.

D) mistake in cross-adding the worksheet.

14) Salary expense has a balance of $65,400 in the trial balance debit column of a worksheet. The adjustments credit column contains a $500 credit to salary payable. The adjusted trial balance column will show:

A) salary expense with a debit balance of $64,900.

B) salary expense with a debit balance of $6,500.

C) salary expense with a debit balance of $65,900.

D) salary payable with a credit balance of $65,900.

15) Interest expense on a worksheet's trial balance debit column has a $3,400 balance and a $4,000 balance on the worksheet's income statement debit column. The difference is due to:

A) an entry in the adjustments credit column for $600 to interest expense.

B) an entry in the adjustments debit column for $4,000 to interest expense.

C) an entry in the adjustments credit column for $4,000 to interest expense.

D) an entry in the adjustments credit column for $600 to interest payable.

16) On a worksheet, the income statement debit column equals $190,800 and the income statement credit column equals $195,600. From this data, it can be determined that:

A) the company had a net loss of $4,800 added to the income statement credit column.

B) the company had a net income of $4,800 added to the income statement debit column.

C) the company had a net loss of $4,800 added to the income statement debit column.

D) the company had a net income of $4,800 added to the income statement credit column.

17) Which of the following appears in the balance sheet debit column of a worksheet?

A) service revenue

B) income summary

C) owner withdrawals

D) accounts payable

18) Which of the following appears in the income statement credit column of a worksheet?

A) service revenue

B) income summary

C) owner withdrawals

D) accounts receivable

19) If the unearned service revenue account had an unadjusted normal balance of $4,800, and an adjustment was made debiting the account for $1,500, the account would appear on the adjusted trial balance of the worksheet as a:

A) $4,800 debit.

B) $6,300 credit.

C) $3,300 credit.

D) $3,300 debit.

20) After all the account balances have been extended to the balance sheet columns of the worksheet, the totals of the debit and credit columns are $35,350 and $38,750, respectively. It can be concluded the company has a:

A) net income of $3,400.

B) net loss of $3,400.

C) $74,100 net loss.

D) $74,100 net income.