CHAPTER 13 REVIEW

123456789101112131415161718192021222324
Across
  1. 4. Stock dividend that rarely occurs, but when declared, is accounted for at the stock’s par value instead of the stock’s market value, and is greater than 20% to 25% of the issued and outstanding stock (3 words).
  2. 5. When Treasury Stock is purchased, this account is debited (3 words)
  3. 9. The ratio that measures the value that the stock market places on $1 of a company’s earnings. The formula is Market price per share of common stock / Earnings per share (3 words).
  4. 12. Gives its owners certain advantages, such as the right to receive preferential dividends (2 words)
  5. 16. This ratio shows the relationship between net income available to common stockholders and their average common equity invested in the company. The formula is (Net income – Preferred dividends) / Average common stockholders’ equity (7 words).
  6. 17. A business organized under state law that is a separate legal entity (1 word)
  7. 19. This statement reports the changes in all stockholders’ equity accounts (4 words).
  8. 21. Amounts received from stockholders in exchange for stock (3 words)
  9. 22. For this preferred stock category, owners must receive all dividends in arrears (passed dividends) and current year dividends before the corporation pays dividends to the common stockholders (3 words).
  10. 23. When common stock is issued, this account is credited (2 words)
  11. 24. The ratio that calculates the amount of a company’s net income (loss) for each share of its outstanding common stock. The formula is (Net income – Preferred dividends) / Weighted average number of common shares outstanding (3 words).
Down
  1. 1. These are distributions of a corporation’s stock and have no effect on total stockholders’ equity, assets, or liabilities (2 words)
  2. 2. For this preferred stock category, owners do not receive any passed dividends (3 words).
  3. 3. This statement reports how the company’s retained earnings balance changed from the beginning of the period to the end of the period (4 words)
  4. 6. Equity earned by profitable operations that is not distributed to stockholders (2 words)
  5. 7. Stock dividend that is accounted for at the stock’s market value and is less than 20% to 25% of the issued and outstanding stock (3 words)
  6. 8. These individuals receive a dividend preference, which ensures they will receive dividends first (2 words).
  7. 9. The equity account used to record the premium amounts received when issuing common stock (8 words)
  8. 10. A corporation’s equity, which includes the 2 sources Paid-in capital and Retained earnings (2 words)
  9. 11. A contra equity account that has a normal debit balance, is a reduction to total stockholders’ equity, can be sold at cost, below cost, or above cost, and is a corporation’s own stock that it has previously issued and later reacquired (2 words).
  10. 13. The payment of these will result in a decrease in both assets (Cash) and equity (Retained Earnings) (2 words)
  11. 14. This transaction does not affect any account balances, no journal entry is needed, but it will increase the number of issued and outstanding shares of stock coupled with a proportionate reduction in the par value of the stock (2 words).
  12. 15. Stock that has been issued and is in the hands of stockholders (2 words)
  13. 18. The maximum number of shares of stock a corporate charter allows the corporation to issue (2 words)
  14. 20. Earnings per share for ‘income from continuing operations’ must be reported on the face of this statement (2 words)