Exam 3: Statements of Income and Comprehensive Income

On December 31^st,2011,JKL Inc.had the following account balances: HYPERLINK "" Error! Hyperlink reference not valid. JKL Inc.was incorporated in province allowing the existence of Treasury shares. The company had no Accumulated Other Comprehensive Income (AOCI)balances on that date. During 2012,the following took place: JKL Inc.had a total Comprehensive Income of $150,000. During 2012,JKL Inc.bought 2,000 shares of MNO Inc.for $45 per share.On December 31^st,2012,these shares were trading at $60 per share.These shares,which were all on hand at the end of 2012,were designated by management as FVTOCI.These shares were the only items affecting Accumulated Other Comprehensive Income (AOCI). Half of the treasury shares held by management at the start of 2012 were sold during the year for $15,000. JKL declared at total of $30,000 in dividends,which included a common stock dividend valued at $10,000. Required: A)Prepare a Statement of Changes in Equity for JKL Inc.as per IFRS as at December 31^st,2012. B)Briefly explain how JKL Inc's reporting requirements would differ if it complied with ASPE instead of IFRS.

Brimley Corp.issued 5,000 common shares,no par,and 800 preferred shares.At the time of issue the common shares were selling at $30 per.There is no current market value for the preferred shares.Total cash received was $162,000.Prepare the journal entry to record the issuance of the shares.

When a corporation declares a small stock dividend,it should capitalize the par value of the shares.

The conversion of preferred shares into common shares results in no change in total shareholders' equity.

Share capital may be classified primarily as:

On July 1,2019,the Board of Directors of BXC declared a stock dividend that required the issuance of 5,000 common shares.The common shares had a market value at this date of $18 per share.Retained earnings amounted to $900,000.Give the entry to record the stock dividend (the shares were issued),assuming: The 5,000 shares represented 10% of the previously outstanding shares.

The dollar amount of total shareholders' equity remains the same for the:

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

The primary sources of owners' equity must be separately identified in the accounts.

If preferred shares are non-participating,then:

If a corporation has dividends in arrears on preferred shares,they should also:

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

Both preferred and common shares may be cumulative.

The effect of a stock dividend is to reduce:

IFRS requires that any public company repurchasing its own shares with the intent of reissuing these to the public treat these shares as treasury shares.

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

When a company is publicly traded,that means every class of share capital must be publicly traded.

A bad debt loss is recognized when a subscriber to common shares defaults.

Propertee,Inc.declared a dividend on May 1 payable in shares of Milly,Inc.(original cost: $4 per share,acquired at the beginning of the current year)to Propertee shareholders of record on June 1.The payment date is July 1.The dividend requires 20,000 shares of Milly to be distributed.Market prices of Milly/share were: May 1: $6; June 1: $8; July 1: $9.Provide the entry at declaration of the dividend.

LS issued 200 common shares to BH (last share transaction was a year prior when LS sold 10 shares at $4 per share),and received a patent in full payment.The patent had a current market value of $2,000 and was carried on the books of BH at $1,500.Under ASPE,common shares should be credited for: