Exam 3: Statements of Income and Comprehensive Income

On 2 January 20X4,GHI Corporation was incorporated in the province of Ontario.It was authorized to issue an unlimited number of no-par value common shares,and 10,000 shares of no-par,$8,cumulative and non-participating preferred.During 20X4,the firm completed the following transactions: Part A: Prepare Journal entries to record the subscription of common shares Part B: Prepare Journal entries to record the issuance of preferred shares in exchange for assets; recorded at fair market value of the assets in the absence of a value for the preferred shares. Part C: Prepare Journal entries to record the receipt of donated assets. Part D: Prepare Journal entries to record the receipt of cash for subscribed shares and issuance of shares. Part E: Prepare Journal entries to record the acquisition and retirement of common shares. Part F: Prepare Journal entries to record dividends declared. Part G: Prepare Journal entries to record the closing of the income summary account.

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:

TTSS Corporation had 1,000 common shares issued and outstanding (sold at $40 each).It then made its first-ever purchase of treasury stock by buying 200 of its own shares for $50 per share.Assume sufficient retained earnings.The entry to record this purchase using the single-transaction method would include:

Shareholders in a corporation usually have limited liability.

On January 10,2013,ZOE Corporation declared a cash dividend when the related shares were selling for $10 per share.ZOE prepared the list of shareholders on February 10,2013 at which time the shares were still selling for $10 per share.However,on February 11,2013 the shares were selling for $8 per share.The dividend was paid on March 1,2013 when the shares were selling for $9 per share.The ex-dividend date must have been:

Convertible preferred shares are convertible (usually to common shares)at the option of the shareholder and not at the option of the corporation.

Explain why companies may want to reacquire their own shares?

The declaration of a property dividend results in:

During 2014,BV sold and issued the following shares for $20,000 cash: Common shares,600 shares (current market price per share,$23.50). Preferred shares,200 shares (no current market price available); original issue price,three years earlier,$22 per share. The total issue price of $20,000 that should be apportioned to the preferred shares is:

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

Preferred shares generally have fewer voting rights than common shareholders but receive preferential treatment (relative to the common shareholders)in the event of the company's liquidation.

A company reacquires its own shares during the fiscal year and reports the transaction in the theoretically correct manner.What effect will this transaction have on shareholders' equity and earnings per share,respectively?

XHC had only two share transactions.Initially,XHC issued 1,000 common shares,at $15 per share.XHC later bought back 200 shares at $16 per share.Under the single-transaction method,what is the amount that should be recorded in the treasury stock account?

The declaration and payment of a cash or property dividend requires:

Under IFRS,the treatment of any of a company's foreign subsidiary is dependent upon:

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:

Authorized share capital refers to the total number of shares:

For dividends,the date of record is the date:

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.

XV Corporation has 1,000 shares of treasury stock (common shares).It was originally issued at $15 per share and was reacquired at $10 per share.XV Corporation has decided to formally retire these shares; the current market price is $9.The single-transaction method is used.The entry to record the retirement of the shares should include the following: