Exam 3: Statements of Income and Comprehensive Income

SXC reported income during four successive years as follows: $1,000,$2,000,$3,000,and $11,000.The share capital outstanding consisted of 3,000 common shares issued at $20 each,and 5,000,$.50 preferred shares issued at $10 each.(Matching common dividend,if applicable,$1).If income in full were declared as dividends each year,determine the amount that would be paid on each class of shares for each of the four years assuming:

Property dividends are dividends that the corporation distributes in the form of non-cash assets.

ABC declared a common stock dividend on March 10,at which time its shares were selling for $15 per share and 10,500 shares were outstanding.After the dividend,because only 13,650 shares were outstanding,some shareholders received fractional share rights.If the provisions of the dividend provided that one share was to be issued for each three shares previously owned,there must have been:

On January 1,2015,the accounts of CXC reflected the following: The single-transaction method is used.On February 1,2015,CXC purchased 5,000 of its own shares at $2.10 per share.Later,on December 1,2015,CXC sold 2,000 of these treasury shares at $1.50 per share.Give the journal entry on December 1,2015,to record this sale of treasury stock.

Total equities of a corporation usually include:

Losses that a corporation suffers from dealing in its own stock may:

When a corporation sells some of its own common shares,all on credit,there should be a debit to the account:

On January 1,2015,WVC split its common shares 4 for 1 when the market value was $80 per share.Prior to the split,WVC had 50,000 common shares issued and outstanding (average issue price $12 per share).After the split,the average issue price of the shares was reduced:

The entry to record share issue costs will never affect:

If preferred shares are noncumulative,then:

Cash dividends sometimes are declared in one reporting period and are payable in the next reporting period.The dividend should be recorded on the:

On July 1,2015,NTC had outstanding 10,000 common shares,(originally sold at $12); the quoted market price currently is $16.The company declared and issued a 10% common stock dividend.Give the entry.

When all of the preferred shares are purchased and formally retired by the issuing corporation for less than its original issue price,accounting for the retirement increases:

MNO declared a stock dividend when it had 40,000 shares outstanding.After issuing the dividend,7,200 additional shares and 4,000 fractional share rights were outstanding.If it required five fractional share rights to acquire a new share,this dividend must have been a:

When a corporation issues a dividend in excess of the balance of its retained earnings account,it is issuing a:

When stock rights are issued to current shareholders,it may require more than one such right to later acquire one additional share of the stock covered by the rights.

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 share and the preferred at $25.Total cash received was $162,000.Prepare the journal entry to record the issuance of the shares.

Lorella entered into a common share subscription contract for 1,000 shares at a subscription price of $20.She paid 20% of the total price as a down payment and also paid the next two 20% instalments (she paid 60% in all).Lorella then defaulted on the contract and refused to pay any more.Assuming the company must issue shares in proportion to the cash paid,the entry to record the default would include:

Only certain unrealized gains flow through Other Comprehensive Income - any realized gains flow through retained earnings.

The date of record for a cash dividend follows the date of payment and precedes the date of declaration.