Exam 21: Corporate Earnings and Capital Transactions

The entry to record the declaration of a stock split includes a debit to Retained Earnings.

Which of the following statements is correct?

The Treasury Stock account is shown on the balance sheet as

Retained earnings do not represent a cash fund.

An appropriation of retained earnings represents

After all revenue and expense accounts,other than Income Tax Expense,have been extended to the Income Statement section of the worksheet of Folk Enterprises,Inc. ,the net income is determined to be $300,000.Using the following corporate income tax rates,compute the corporation's federal income taxes payable.(Assume that the firm's taxable income is the same as its income for financial accounting purposes. )

If the corporation's income tax computed at the end of the year is less than the total of quarterly deposits,the necessary adjustment will result in a

A corporation reported a net income of $200,000 for its fiscal year and declared and paid cash dividends of $90,000.A stock dividend recorded at $50,000 was also distributed during the year.If the ending balance of the Retained Earnings account was $300,000,calculate the beginning balance in the Retained Earnings account.

The entry to record the payment of a cash dividend includes a debit to Retained Earnings and a credit to Cash.

When the cumulative taxable income is higher than that reported on the financial statements,this gives rise to

When a corporation purchases its own stock and intends to reissue that stock at a later date,the cost of the shares is shown in the Assets section of the balance sheet until the stock is reissued.

Which of the following statements is not correct?

The record date is the date

Which of the following would be found on a corporation's income statement?

A corporation reported a net income of $120,000 for its fiscal year and declared and paid cash dividends of $50,000.A stock dividend recorded at $80,000 was also distributed during the year.If the beginning balance of the Retained Earnings account was $200,000,the ending balance is

After all revenue and expense accounts,other than Income Tax Expense,have been extended to the Income Statement section of the worksheet of Carlton Corporation,the net income is determined to be $75,000.Using the following corporate income tax rates,compute the corporation's federal income taxes payable.(Assume that the firm's taxable income is the same as its income for financial accounting purposes. )

Corporations are subject to the same tax filing deadlines as individual taxpayers.

Deferred Tax Assets are created whenever taxes are paid on revenue transactions that will be reflected in future financial statement income.

Total stockholders' equity would be decreased by

A corporation has paid estimated income taxes of $59,000 during the year 2016.At the end of the year,the corporation's tax bill is computed to be $70,000.Record the entry to adjust the Income Tax Expense account on page 6 of a general journal.Omit the description.