The following information pertains to Roku's initial public offering:

The following information pertains to Roku's initial public offering:

times•    Roku's initial public offering (IPO) was on September 28, 2017

times•    Issued 15,900,000 shares; $13.80 per share

times•    Net cash proceeds $219,420,000

times•    Par value per share $0.0001

Roku's IPO has a direct impact on its net income.

A. True

B. False

If stock is issued for an asset other than cash, the asset should be recorded on the books of the corporation at:

A.
Cost

B.
Par value of the stock

C. Fair market value

D.
Zero

Hudson Corporation issued 7,000 shares of its $5 par value common stock in payment for attorney services of $ 45,000. Hudson stock has been actively trading at $ 16 per share. This transaction would include a:

A. Credit to common stock $ 45 comma 000
B. Debit to legal expense $ 112 comma 000
C. Credit to common stock $ 112 comma 000
D.Debit to legal expense $ 45 comma 000

The following information pertains to Roku's initial public offering:

times•    Roku's initial public offering (IPO) was on September 28, 2017

times•    Issued 15,900,000 shares; $13.80 per share

times•    Net cash proceeds $219,420,000

times•    Par value per share $0.0001

What is the stock issuance impact on Roku's balance sheet?

A.
Assets remain the same, liabilities remain the same, stockholders' equity increases

B. Assets increase, liabilities remain the same, stockholders' equity increases

C.
Assets increase, liabilities decrease, stockholders' equity increases

D.
Assets decrease, liabilities remain the same, stockholders' equity increases

The statement of stockholders' equity includes:

A. Each stockholders' equity account

B.
Each liability account

C.
Each asset account

D.
Each revenue and expense account

The date when a cash dividend becomes a legal obligation is on the:

A. Declaration date

B.
Payment date

C.
Last day of the corporate year

D.
Date of record

The effect of the declaration of a cash dividend is a(n):

A.
Increase to stockholders' equity and a decrease to assets

B. Increase to liabilities and a decrease to stockholders' equity

C.
Increase to assets and a decrease to liabilities

D.
Increase to liabilities and a decrease to assets

When 50 shares of $1 par value Common Stock are issued at $28 per share, Additional Paid-in Capital will:

A.
Stay the same

B.
Increase by $ 1 comma 400$1,400

C.
Increase by $ 50$50

D. Increase by $ 1 comma 350

Which of the following is NOT considered to be an advantage of forming a corporation?

A. Government regulation

B.
Continuous life

C.
Limited liability of stockholders for corporation's debts

D.
Ability to raise more capital than a partnership or proprietorship

Glengyle Corporation earned net income of $ 105,000 during the year ended December​ 31, 2018. On December​ 15, Glengyle declared the annual cash dividend on its 3​% preferred stock ​(12,500 shares with total par value of $ 125,000​) and a $ 1.00 per share cash dividend on its common stock ​(80,000 shares with total par value of $ 800,000​). Glengyle then paid the dividends on January​ 4, 2019

Glengyle Corporation earned net income of $ 105,000 during the year ended December​ 31, 2018. On December​ 15, Glengyle declared the annual cash dividend on its 3​% preferred stock ​(12,500 shares with total par value of $ 125,000​) and a $ 1.00 per share cash dividend on its common stock ​(80,000 shares with total par value of $ 800,000​). Glengyle then paid the dividends on January​ 4, 2019

Answer
A dividend is a distribution by a corporation to its​ stockholders, usually based on the​ company's earnings. Dividends usually take one of three​ forms: Cash;​ Stock; and Noncash Assets. Most dividends are cash dividends. A corporation declares a dividend before paying it. Only the board of directors has the authority to declare a dividend. The corporation has no obligation to pay a dividend until the board declares​ one, but once​ declared, the dividend becomes a legal liability of the corporation. Dividends may be expressed as a dollar amount per share or as a percentage. When dividends are stated as a​ percentage, the par value of the stock is multiplied by the dividend percentage rate.
There are three relevant dates for​ dividends:
1.
Declaration date​ - On the declaration​ date, the board of directors announces the dividend. Declaration of the dividend creates a liability for the corporation. It is recorded by debiting Retained Earnings and crediting Dividends Payable.
2.
Date of record​ - As part of the​ declaration, the corporation announces the record​ date, which is the date on which the company looks to see who its stockholders are. Only those who are stockholders on the date of record will receive the dividend. The date of record follows the declaration date by a few weeks. There is no journal entry for the date of record.
3.
Payment date​ - Payment of the dividend usually follows the record date by a week or two. Payment is recorded by debiting Dividends Payable and crediting Cash.
The net effect of a dividend declaration and its​ payment, is a decrease in assets and a corresponding decrease in​ stockholders' equity.
a. Journalize for Glengyle Corporation the declaration of the cash dividends on December​ 15, 2018.
Before we can journalize the declaration of cash dividends the amount of each type of dividend must be calculated. The declaration of cash dividends will include dividends on common and preferred stock. Use the formula below to calculate the common dividends.




Now we can record the declaration of both the preferred and common dividends in one entry. To account for the declaration of a cash​ dividend, we record a reduction to Retained Earnings and an increase in Dividends Payable. You will need to add the value of the common and preferred dividends. Go ahead and prepare the entry. ​(Record debits​ first, then credits. Exclude explanations from any journal entries. Use only a single account to record the​ dividends.)
 
 b. Journalize for Glengyle Corporation the payment of the cash dividends on January​ 4, 2019.
Remember that we are now recording a reduction of the liability that was created on December​ 15, 2018. Think carefully about the accounts affected when a liability is reduced. Now​ let's prepare the entry.

 Did Retained Earnings increase or decrease during 2018​? By how​ much?
Next we must determine whether retained earnings increased or decreased during 2018. Review the formula to calculate the increase or decrease in the Retained Earnings account.
 
Thanks