Exam 3: Statements of Income and Comprehensive Income

Before a company can issue a property dividend in shares of another company,it must ensure that the shares are recorded at market value.The dividend is then paid out of the company's contributed capital accounts rather than its retained earnings.

Dividends in arrears on noncumulative preferred shares must be paid before dividends can be paid to the common shareholders.

Ownership of shares usually entitles the holders to all of the following rights except:

A firm declares a property dividend to its shareholders.The assets to be distributed in the dividend have a combined book value of $40,000 and combined market value of $60,000.Before taxes,the net change in retained earnings as a result of this nonreciprocal transfer is:

The declaration and issuance of a common stock dividend:

When noncash assets are issued as a dividend,those assets should be re-valued as of the:

Under the single transaction method,the difference between the cost of treasury stock and a subsequent higher selling price of the treasury stock should be credited to:

YTC sold and issued 200 of its common shares,true no-par,at $12 per share.Assuming no specific legal requirements,the common share account should be credited for:

The contributed capital accounts should be classified by source.

Identify the missing component (X)in the following equation: Retained earnings,ending balance = Net income to date + prior period adjustments to date - cash and property dividends to date - X

BX had the following shares outstanding: (Matching dividend,if applicable,$12) 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 $87,000.The total amount of dividends to which common shareholders are entitled is:

"Common shares subscribed" is credited in recording a common share subscription contract because the shares are usually issued at the time the contract is signed.

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

The number of treasury shares held by a corporation equals:

All unrealized gains and losses,regardless of origin,flow through Other Comprehensive Income.

How should a gain from the sale of treasury stock be reflected when using the single transaction method of recording treasury stock transactions?

Dividends in arrears on cumulative preferred shares constitute a liability to the corporation that should be recorded (accrued).

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

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:

All Contributed Capital accounts may carry either a debit or a credit balance,depending on the transactions from which the account balance originated.