Exam 14: Shareholders Equity

The declaration of a property dividend results in:

Retained Earnings restrictions are usually imposed on a company by a third party.

Which of the following represents the interest period for a scrip dividend?

When a property dividend is to be declared, the underlying asset(s)to be distributed as a dividend must first be brought to fair value, with any gains or losses going to income.

The increases in account balances of XYZ during 2014 are presented below: Assuming the only debit to retained earnings was for a dividend of $52,000, net income for 2014 was:

Which of the following statements concerning stock dividends is correct?

CB Corporation issued a 2 for 1 stock split.Which of the following is NOT a true statement concerning the effect of the split?

A 3-for-1 common stock split,

Effective April 8, 2014, the shareholders of Kim Corporation approved a 2 for 1 split of the company's common shares, and an increase in authorized common shares from 100,000 shares to 200,000 shares.Kim's shareholders' equity accounts immediately befor issuance of the stock split shares were as follows: Common shares, 100,000 shares authorized; 50,000 shares outstanding = $2,250,000 Retained earnings = $2,150,000 What should be the balances in Kim's common shares and retained earnings accounts immediately after the stock split?

MNO declared a stock dividend when it had 40,000 shares outstanding.After issuing the dividend, 7,200 additional shares and 4,000 fractional share rights were outstanding.If it required five fractional share rights to acquire a new share, this dividend must have been a:

If a corporation has dividends in arrears of $25,000 on its cumulative preferred shares, it must:

The entry to record share issue costs will never affect:

Under IFRS, companies are required to disclose the components of their shareholders' equity along with an explanation of any shareholder equity transactions during the year.

On January 1, 2014, DDB agreed to purchase 4,000 of CTC's common shares at $5 per share.Cash payment in full, including 10% interest, is to be paid one year later at which time the shares will be issued.The appropriate journal entry for CTC to record the transaction on January 1, 2014, would include a:

CRC reported the following on its 2015 balance sheet: $6 Preferred shares, no par = $62,000 Common shares, no par = $320,000 Retained earnings = $240,000 Given common shares outstanding, what is the average issue price per common share?

Cumulative preferred shares usually carry the right; upon liquidation of the corporation to dividends in arrears to the extent the corporation has retained earnings.

ABC Inc.engages in a non-cash exchange with a third party whereby ABC Inc.issues common shares to the third party in exchange for some highly specialized Machinery & Equipment.The value of the shares issued was $15,000 while the appraised value of the Machinery & Equipment was $12,000.At what amount would this transaction be valued on ABC's books?

Ryan Corp.has the following share capital outstanding: Common, 10,000 shares Preferred $1.80 noncumulative, non-participating, 10,000 shares Dividends are two years in arrears, excluding the current year.Total dividends of $90,000 will be paid for the current year.The total amounts that will be received by the preferred shareholders and common shareholders are:

On January 1, 2015, WVC split its common shares 4 for 1 when the market value was $80 per share.Prior to the split, WVC had 50,000 common shares issued and outstanding (average issue price $12 per share).After the split, the average issue price of the shares was reduced:

When a corporation sells some of its own common shares, all on credit, there should be a debit to the account: