Exam 3: Statements of Income and Comprehensive Income

Explain the options available to a corporation that issues share subscriptions where partial payment has been received but the subscriber defaults on the balance.

XAC received a share subscription from J.Doe for 100 of its common shares,issue price $15; one-third cash down payment.Provide the entry to record the subscription and partial payment.

DX had the following shares outstanding: (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:

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

The owners' equity section of a firm's balance sheet reflects the following at the end of the current year: (Matching dividend,if applicable,$.30) The preferred shares participate up to a maximum of $8 ($2 additional participation).There were two years of dividends in arrears on the preferred shares at the beginning of the current year.If the firm declares $110,000 in dividends at the end of the current year,what portion of that amount is distributed to the common shareholders?

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

The owners' equity section of a firm's balance sheet reflects the following at the end of the current year: (Matching dividend,if applicable,$.30) The preferred shares participate up to a maximum of $8 ($2 additional participation).There were two years of dividends in arrears on the preferred shares at the beginning of the current year.If the firm declares $90,000 in dividends at the end of the current year,what portion of that amount is distributed to the preferred shareholders?

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

In a stock split,only the content of contributed capital is changed,whereas in a stock dividend the amount of contributed capital is changed.

CRC reported the following on its 2015 balance sheet: Given common shares outstanding,what is the average issue price per common share?

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

A stock split results in the reduction of the par or stated value per share and a proportional increase in the number of shares outstanding.

If a corporation only has one class of shares,that class of shares will be referred to as Share Capital on the statement of financial position.

The conversion from one type of share to another should be accounted for at:

SXC reported the following data on its 2014 statement of financial position: If the average price paid for all of the common shares sold and subscribed were $5.00,the total number of sold and subscribed shares was:

DWWR purchased its own common shares for $20,000 and debited the treasury stock account for the purchase price.The shares were subsequently sold for $17,000.The $3,000 difference between the cost and sale price should be recorded as a reduction of:

On December 31,2013,TTX reported owners' equity of $150,000.During 2014,TTX declared and paid cash dividends of $30,000; reported a net loss of $15,000; issued additional common shares (no par)for $70,000; and purchased treasury stock at a cost of $15,000 (cash),Therefore,the 2014 ending amount of shareholders' equity was:

A dividend that constitutes a return of contributed capital rather than earnings is called a:

A common stock dividend does not:

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: