Exam 14: Shareholders Equity

When treasury stock accounted for by the single-transaction method is subsequently sold for more than its purchase price, the excess of the cash proceeds over the carrying value of the treasury stock should be recognized as:

The redemption privilege on preferred shares provides that the preferred shareholders can:

Retained earnings, if not designated otherwise, represents the unappropriated portion of retained earnings.

On December 31, 2014, when JR Corporation's shares were selling at $44 per share, its shareholders' equity accounts were as follows: Common shares (no par value)= 100,000 Shares Issues and outstanding = $2,700,000 Retained earnings (credit)= $4,450,000 A 100 percent stock dividend was declared and issued.The effect of this dividend was:

The following data is available for XAC: Find the number of shares subscribed and the subscription price per share?

A restriction of retained earnings is most likely to be required by the:

Cash dividends sometimes are declared in one reporting period and are payable in the next reporting period.The dividend should be recorded on the:

A Statement of Changes in Shareholder Equity is mandatory under both IFRS and ASPE.

Property dividends are dividends that the corporation distributes in the form of non-cash assets.

A stock dividend and a stock split are identical in all respects for the corporation issuing the dividend or splitting the stock.

On July 1, 2015, NTC had outstanding 10,000 common shares, (originally sold at $12); the quoted market price currently is $16.The company declared and issued a 10% common stock dividend.Give the entry.

A common stock dividend does not:

You happened to look across the balance sheet of a firm, which discloses $40,000 of ending retained earnings, $10,000 of which is appropriated for plant expansion.This firm is not a natural resources firm.Therefore:

When a scrip dividend is declared, the shareholder receives a promissory note from the company.

DX had the following shares outstanding: Preferred shares, $3, 2,000 shares = $100,000 Common shares, 2,000 shares = $200,000 (Matching dividend, if applicable, $6) The preferred shares are cumulative, fully participating; dividends are three years in arrears, excluding the current year; dividends declared in the current year amount to $42,000.The total amount of dividends to which preferred shareholders are entitled is:

If preferred shares are noncumulative, then:

Liquidating dividends are similar to stock dividends because neither one reduces total stockholders' equity.

Explain what is meant by share issue costs and how they are treated for accounting purposes.

Choose the most correct statement regarding a 2-for-1 stock split and a 100% stock dividend.

ATC's balance sheet on December 31, 2015, showed the following: Using this information, answer the following questions: (a)What is the absolute maximum amount of cash dividends that can be paid immediately? _______ (b)What is the book value per common share? $ _. (c)Assuming a $10,000 cash dividend is declared, what entries would be made on each of the following dates: (1)Declaration date: (2)Date of record: (3)Date of payment: