Just before Arugone Funeral Homes Inc.issued a 10% share dividend on December 1,the following data were collected: $\begin{array}{|l|r|} \hline \text { Retained earnings } & \$ 650,000 \\ \hline \text { Shares outstanding } & 10,000 \\ \hline \text { Market value per share } & \$ 10 \\ \hline \text { Par value per share } & \$ 4 \\ \hline \text { Shares issued } & 11,000 \\ \hline \end{array}$ The amount that total equity will increase (decrease)as a result of recording the share dividend is

A) $7,500 B) $(9,000) C) $22,500 D) $(27,000) E) $-0- A) $7,500 B) $(9,000) C) $22,500 D) $(27,000) E) $-0- E

A) Are the cumulative net profits or losses minus dividends paid since the date of incorporation B) Are part of the income statement C) Represent an amount of cash available to pay shareholders D) Are the cumulative net profits or losses minus dividends paid since the date of incorporation and are part of shareholders' equity E) All of these A) Are the cumulative net profits or losses minus dividends paid since the date of incorporation B) Are part of the income statement C) Represent an amount of cash available to pay shareholders D) Are the cumulative net profits or losses minus dividends paid since the date of incorporation and are part of shareholders' equity E) All of these

A) Reduces the number of issued shares B) Is not permissible under law if the interest of the shareholders is not jeopardized C) Is accounted for like SPLIT shares D) Reduces the number of issued shares and is permissible under law if the interest of the shareholders is not jeopardized E) All of these A) Reduces the number of issued shares B) Is not permissible under law if the interest of the shareholders is not jeopardized C) Is accounted for like SPLIT shares D) Reduces the number of issued shares and is permissible under law if the interest of the shareholders is not jeopardized E) All of these

Exam 5: Corporate Reporting: Income, earnings Per Share, and Retained Earnings

Quantum Corporation had net income of $35,000 and paid preferred dividends of $6,000.Quantum had 4,000 common shares outstanding.Calculate the earnings per share.

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(Short Answer)

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Question 1

Correct Answer:

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($35,000 - $6,000)/4,000 = $7.25

A share dividend transfers

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(Multiple Choice)

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Question 2

Correct Answer:

Verified

Just before Arugone Funeral Homes Inc.issued a 10% share dividend on December 1,the following data were collected: Retained earnings \ 650,000 Shares outstanding 10,000 Market value per share \ 10 Par value per share \ 4 Shares issued 11,000 The amount that total equity will increase (decrease)as a result of recording the share dividend is

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(Multiple Choice)

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Question 3

Correct Answer:

Verified

Retained earnings

(Multiple Choice)

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Question 4

Hunter Ltd.declares a 10% share dividend on December 31,2020.Currently Hunter has 10,000 shares outstanding.The market value of the shares on the date of declaration is $1 per share.The value to be assigned to this share dividend is

(Multiple Choice)

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Question 5

Changes in accounting estimates are treated as accounting errors.

(True/False)

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Question 6

A corporation's distribution of its own shares to its shareholders without receiving any payment in return is a

(Multiple Choice)

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Question 7

Retrospective restatement of financial statements can result from

(Multiple Choice)

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Question 8

An expanded income statement for a corporation with discontinued operations includes information on

(Multiple Choice)

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Question 9

A reverse share split reduces the market value of shares and the par value per share.

(True/False)

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Question 10

A share dividend reduces a corporation's assets and equity.

(True/False)

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Question 11

On July 31,Sweep Airline Ltd.'s equity was: Common shares, unlimited shares authorized, 100,000 shares issued and outstanding \ 400,000 Retained earnings 550,000 Total equity \ 950,000 Also note that on July 31 the market value of Sweep Airline's shares was $12 per share.The directors considered declaring a 10% or 20% share dividend and wanted to know what effect each share dividend would have on total equity.Calculate the balances that should be in the following accounts after a share dividend distribution. Balances After 10\% Share Dividend Balances After 20\% Share Dividend Common shares Retained earnings

(Essay)

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Question 12

A change from moving weighted average to FIFO reporting is

(Multiple Choice)

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Question 13

A share split is the distribution of additional shares to shareholders according to their percent of ownership.

(True/False)

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Question 14

A cash dividend does not reduce a corporation's assets or equity,while a share dividend reduces both.

(True/False)

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Question 15

Explain where each of the following items should appear in the financial statements of Reid and Right Corp,a publishing company: (1)After the retirement of the company's CEO,the company has decided to downsize its operations.This will include the elimination of the children's book segment of operations.(2)The company holds 500 shares in Dakota Corp.that originally cost $2,000; the shares now have a market value of $4,000.They are being accounted for as an available-for-sale investment.

(Essay)

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Question 16

Retirement of shares

(Multiple Choice)

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Question 17

The Habitat Corporation issued common shares for $35 each.Two years later,on June 10,200 shares were repurchased and retired at a cost of $60 each.The company has $8,000 in contributed capital from the previous retirement of common shares.Present the general journal entry to record the June 10 transaction.

(Essay)

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Question 18

Earnings per share is calculated by dividing the number of common shares outstanding by net income.

(True/False)

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Question 19

Explain the form and content of an expanded income statement for a corporation with discontinued operations.

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Question 20

Showing 1 - 20 of 66

Quantum Corporation had net income of $35,000 and paid preferred dividends of $6,000.Quantum had 4,000 common shares outstanding.Calculate the earnings per share.

A share dividend transfers

Retained earnings

Hunter Ltd.declares a 10% share dividend on December 31,2020.Currently Hunter has 10,000 shares outstanding.The market value of the shares on the date of declaration is $1 per share.The value to be assigned to this share dividend is

Changes in accounting estimates are treated as accounting errors.

A corporation's distribution of its own shares to its shareholders without receiving any payment in return is a

Retrospective restatement of financial statements can result from

An expanded income statement for a corporation with discontinued operations includes information on

A reverse share split reduces the market value of shares and the par value per share.

A share dividend reduces a corporation's assets and equity.

A change from moving weighted average to FIFO reporting is

A share split is the distribution of additional shares to shareholders according to their percent of ownership.

A cash dividend does not reduce a corporation's assets or equity,while a share dividend reduces both.

Retirement of shares

Earnings per share is calculated by dividing the number of common shares outstanding by net income.

Explain the form and content of an expanded income statement for a corporation with discontinued operations.

Property, plant and Equipment Intangibles

Current Liabilities

Partnerships

Organization and Operation of Corporations

Bonds and Long-Term Notes Payable

Accounting for Debt and Share Investments

Reporting and Analyzing Cash Flows

Analyzing Financial Statements

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