34) On November 1, 2014, Oster Company declared a dividend of $3.00 per share. Oster Company has 20,000 shares of common stock outstanding and no preferred stock. The date of record is November 15, and the payment date is November 30, 2014. Please provide the journal entry needed on November 30.
35) Pearland Company has 50,000 shares of common stock outstanding and 2,000 shares of preferred stock outstanding. The common stock is $1.00 par value. The preferred stock has a $100 par value, a 5% dividend rate, and is non-cumulative. On October 31, 2013, the company declares dividends of $0.25 per share for common stock and $5.00 per share for preferred stock. Please provide the journal entry for the declaration of dividends.
Learning Objective 6
1) The book value of common stock is equal to the total equity less the book value of preferred stock, divided by the number or common shares outstanding.
2) Which of the following is the price for which a person can buy or sell a share of stock?
A) Book value
B) Market value
C) Liquidation value
D) Amortized value
3) Which of the following is the amount guaranteed to preferred shareholders in the event the company goes out of business?
A) Book value
B) Market value
C) Liquidation value
D) Amortized value
4) Which of the following is the amount of stockholders' equity on the company's ledger for each share of stock?
A) Book value
B) Market value
C) Liquidation value
D) Amortized value
5) Please refer to the equity section shown below:
Preferred stock, $100 par, 4% non-cumulative
|
$20,000
|
1,000 shares authorized, 200 shares outstanding
|
|
Common stock, $0.01 par
|
400
|
1,000,000 shares authorized, 40,000 shares outstanding
|
|
Paid-in capital in excess of par
|
359,600
|
Retained earnings
|
820,000
|
Total stockholders' equity
|
$1,200,000
|
Assume the preferred shares have no stated liquidation value. The preferred shares are non-cumulative, so there are no dividends in arrears.
Please calculate the book value per share of common stock.
A) $30.00 per share
B) $8.99 per share
C) $9.00 per share
D) $29.50 per share