Exam 14: Corporations: Dividends, Retained Earnings, and Income Reporting

Match each item/event pair below with the indicated change in the item. An individual classification may be used more than once or not at all. For each dividend assume that both declaration and payment or distribution has occurred. Classifications

Blanco Inc. has a net income of $300000 for 2017 and there are 200000 weighted-average shares of common stock outstanding. Dividends declared and paid during the year amounted to $40000 on the preferred stock and $60000 on the common stock. The earnings per share for 2017 is

If a corporation declares a 10% stock dividend on its common stock the account to be debited on the date of declaration is

Reserves include each of the following except

Common Stock Dividends Distributable is classified as a(n)

In determining earnings per share dividends for the current year on noncumulative preferred stock should be

Restricting retained earnings for the cost of treasury stock purchased is a

On January 1 Sly Corporation had 120000 shares of $10 par value common stock outstanding. On March 17 the company declared a 18% stock dividend to stockholders of record on March 20. Market value of the stock was $13 on March 17. The stock was distributed on March 30. The entry to record the transaction of March 30 would include a

Which one of the following events would not require a formal journal entry on a corporation's books?

The following selected amounts are available for Vizio Company. Retained earnings (beginning) \ 1,600 Net loss 300 Cash dividends declared 200 Stock dividends declared 200 What is its ending retained earnings balance?

River Forest Inc. has 5000 shares of 6% $100 par value noncumulative preferred stock and 50000 shares of $1 par value common stock outstanding at December 31 2017. If the board of directors declares a $100000 dividend the

Sebastiani Inc. declared a $80000 cash dividend. It currently has 3000 shares of 7% $100 par value cumulative preferred stock outstanding. It is one year in arrears on its preferred stock. How much cash will Sebastiani distribute to the common stockholders?

Retained earnings represents the amount of cash available for dividends.

The return on ________________ shows how many dollars of net income were earned for each dollar invested by owners.

Net income of a corporation should be closed to retained earnings and net losses should be closed to paid-in capital accounts.

Prepare a 2017 income statement for Shanta Corporation based on the following information: Cost of goods sold \ 490,000 Operating expenses 100,000 Other expenses and losses 30,000 Sales revenue 700,000 Tax rate 30\%

Art Inc. has 2500 shares of 5% $100 par value cumulative preferred stock and 20000 shares of $1 par value common stock outstanding from December 31 2015 through Dec. 31 2017. There were no dividends declared in 2015. The board of directors declares and pays a $22500 dividend in 2016 and in 2017. What is the amount of dividends received by the common stockholders in 2017?

The income statement using IFRS is called the statement of

Income statements for corporations are the same as the statements for proprietorships except for the reporting of

The amount of a cash dividend liability is recorded on the date of record because it is on that date that the persons or entities who will receive the dividend are identified.