2023 1 RKJ Company has provided the following 100 000 shares of 5 par value | Assignments Online

1. RKJ Company has provided the following:

• 100,000 shares of $5 par value common stock are authorized;

• 77,000 shares have been issued;

• 72,000 shares are outstanding.

Which of the following statements is correct?

a. RKJ can issue an additional 23,000 shares of common stock.

b. RKJ has 23,000 shares of treasury stock.

c. RKJ can reissue an additional 28,000 shares of common stock.

d. RKJ has 28,000 shares of treasury stock.

 

2. Kirova Company has provided the following information:

• Number of issued common shares, 900,000;

• Net income, $1,312,500;

• Number of authorized common shares, 1,000,000;

• Number of outstanding common shares, 750,000.

• Number of treasury shares, 150,000.

What is Kirova’s earnings per share?

a. $1.75

b. $2.19

c. $1.46

d. $1.31

 

3. DORA Company declared and distributed a 10% stock dividend on 15,000 shares of issued and outstanding $5 par value common stock. The market price per share on the declaration date was $15 and was $14 on the distribution date. Which of the following correctly describes the accounting for the declaration and distribution of the stock dividend?

a. Retained earnings decreased $22,500.

b. Common stock increased $22,500.

c. Retained earnings decreased $21,000.

d. Capital in excess of par increased $13,500.

 

4. Assume the following capital structure:. Preferred stock, 8%, $50 par value, 2,500 shares issued and outstanding with dividends in arrears for three prior years (2007 – 2009).

Common stock, $100 par value, 3,500 shares issued and outstanding.

Total dividends declared and paid in 2010 were $65,000.

How much of the 2010 dividend will be paid to the preferred stockholders assuming the preferred stock is cumulative?

a. $25,000

b. $40,000

c. $55,000

d. $10,000