What the book value of each share of common stock is

Assignment Help Accounting Basics
Reference no: EM132835405

Problem 1: Petro Corporation has total paid-in capital of $40,000 and retained earnings of $30,000. It has 100 shares of $100 preferred stock with no dividends in arrears and 1,000 shares of $10 par value common stock. The book value of each share of common stock is:

a) $60.

b) $30.

c) $10.

d) $70.

Problem 2: Retained earnings equal:

a) the amount stockholders have invested in the business.

b) the accumulated profits that are kept in the business.

c) the amount listed in the charter.

d) an amount a corporation must retain in the business for protection of creditors.

Problem 3: To record the purchase of treasury stock,

a) debit Treasury Stock - Common (par value), credit Cash (same).

b) debit Treasury Stock - Common (purchase price), credit Cash (same).

c) debit Treasury Stock - Common (par value), any difference to Paid-In Capital, credit Cash (purchase price).

d) None of these answers is correct.

Reference no: EM132835405

Questions Cloud

Explain difference between a cost and a profit center : Elaborate on the implications of a health services department moving from a cast center to a profit center. Information discussed must include.
What the date of declaration for cash dividends is : What the date of declaration for cash dividends is? the date the board of directors determines who will receive dividends. / the date board of directors pays.
Explain system software and application software : What system software and application software are usually rented as part of SaaS by theircustomers?
What would be your first nursing intervention : You are a school nurse in a middle school when Jamal comes to the nurse's office requesting medication for a headache. You notice that his eyes are red.
What the book value of each share of common stock is : $100 preferred stock with no dividends in arrears and 1,000 shares of $10 par value common stock. The book value of each share of common stock is
Mention four of the best practices to the disability : 1. Mention four of the best practices to the disability management Provide a clear explanation for each of the best practices.
Determine the Wood adjusted cash balance at April : The April bank statement sent by the bank indicates that Wood has a cash balance of $49,200 on April 30. Determine the Wood adjusted cash balance at April
How does substance abuse affect parenting : Write a 1-2 page essay on the topic "parents with substance abuse problems": How can a parent overcome the substance abuse problem?
Compare stock option plans vs incentive stock options plans : Compare differences between nonqualified stock option plans and incentive stock options (ISO) plans. In addition, assume your employer is considering

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd