Exam 3: Statements of Income and Comprehensive Income

As of January 1,2013 there are 2 years of dividends in arrears on an issue of cumulative nonconvertible preferred shares.No dividends on preferred shares were declared in 2013.Therefore,under IFRS,on the Dec.31,2013 financial statements,the firm issuing the preferred shares:

Accounting recognition must be given to common share subscriptions on the subscription date:

X Corporation owns 15% of the outstanding shares of Z Corporation.The Z stock is distributed to the shareholders of X Corporation as a dividend at its current market value.This is an example of a:

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:

Legal capital is related directly to the total number of shares issued.

Dividends are paid when declared.

XY Company had the following shareholder equity: Common shares outstanding,10,000; average issue price,$115; current market price,$140.Shares sold on a stock subscription basis are not issued until the subscription price is collected in full.Recording a declaration of a 10 percent stock dividend in conformity with generally accepted accounting principles would change retained earnings:

An appropriation of retained earnings of a significant amount:

Which of the following is NOT a true statement? Treasury stock is:

DXC has the following outstanding shares: $5 Preferred,2,000 shares issued at $100 per share common,no-par value,5,000 shares issued at $60 per share (Matching dividend,if applicable $3) Compute the amount of dividends per share payable to each class of shares for each independent case.Show computations.

Zygo sold 1,000 common shares (par $3)at $5 per share on a subscription basis.The entry to record this transaction included a credit to:

A 3-for-1 common stock split,

Preferred shareholders normally have the same voting rights as common shareholders.

Treasury shares cannot be voted,nor paid dividends,pending resale.

ABC Inc.issued 1,000 common shares and 3,000 preferred shares for a lump sum of $25,000.The fair market value of each share on the date of issue was $6 per common share and $8 per preferred share.How much of the proceeds received should be allocated to the preferred shares on the date of issue?

Indicate the principle effects of a cash dividend (declared and paid),a stock dividend issued,and a stock split issued,on the financial statements of the issuing corporation.Respond as follows: I-for increase; D-for decrease; and N-no effect.Assume no stock warrants and no reverse stock splits.

When a company issues to its shareholders some shares of another corporation's stock that currently are held as an investment,the company is issuing a stock dividend.

Explain what is meant by share issue costs and how they are treated for accounting purposes.

The December 31,2016,the balance sheet of TXY reflected the following: Assume the company sold all of the assets at December 31,2016,at market value for cash; paid off the liabilities and distributed all of the remaining cash to the shareholders.The amount of cash per share that each common shareholder would receive would be:

The accounting treatment for ordinary and liquidating dividends differs.Ordinary dividends cause a debit to retained earnings and liquidating dividends cause a debit to contributed capital.