Question 1

Which statement about the "ex-dividend date" is correct?

Accepted Answer

A) The ex-dividend date relates only to shares that are publicly traded. 
B) An investor who buys shares before the ex-dividend date does not have the right to receive a dividend that has been declared. 
C) The ex-dividend date will occur after the record date. 
D) An investor who buys shares on or after the ex-dividend date has the right to receive a dividend that has been declared. 
A) The ex-dividend date relates only to shares that are publicly traded. 
B) An investor who buys shares before the ex-dividend date does not have the right to receive a dividend that has been declared. 
C) The ex-dividend date will occur after the record date. 
D) An investor who buys shares on or after the ex-dividend date has the right to receive a dividend that has been declared.

Question 2

How should subscriptions receivable be reported on the balance sheet and why?

Accepted Answer

Logically it makes sense to report subsc

Question 3

Which statement about dividends is correct?

Accepted Answer

A) Dividends on cumulative preferred shares are not discretionary payments. 
B) Dividends are mandatory payments required for both common and preferred shares. 
C) Dividends are discretionary payments that can be made for common and preferred shares. 
D) Dividends must be paid on common shares before dividends can be paid on preferred shares. 
A) Dividends on cumulative preferred shares are not discretionary payments. 
B) Dividends are mandatory payments required for both common and preferred shares. 
C) Dividends are discretionary payments that can be made for common and preferred shares. 
D) Dividends must be paid on common shares before dividends can be paid on preferred shares.

Question 4

In which account would "transactions with owners" be reported?

Accepted Answer

A) Appropriated reserves. 
B) Unappropriated retained earnings. 
C) Contributed surplus. 
D) Accumulated other comprehensive income. 
A) Appropriated reserves. 
B) Unappropriated retained earnings. 
C) Contributed surplus. 
D) Accumulated other comprehensive income.

Question 5

If 10,000 shares with par value of $15/share are issued for $20/share,how much will be presented as "contributed surplus" for financial statement purposes?

Accepted Answer

A) $10,000 
B) $50,000 
C) $150,000 
D) $200,000 
A) $10,000 
B) $50,000 
C) $150,000 
D) $200,000

Question 6

What is the economic significance of "par value" for accounting purposes?

Accepted Answer

A) The par value determines the amount of contributed surplus. 
B) Par value has no economic significance for accounting purposes. 
C) Par values determines the amount of cash received from investors. 
D) Par value shares are not permitted under IFRS or ASPE. 
A) The par value determines the amount of contributed surplus. 
B) Par value has no economic significance for accounting purposes. 
C) Par values determines the amount of cash received from investors. 
D) Par value shares are not permitted under IFRS or ASPE.

Question 7

When does a company record dividends payable?

Accepted Answer

A) On date of record. 
B) On ex-dividend date. 
C) On payment date. 
D) On declaration date. 
A) On date of record. 
B) On ex-dividend date. 
C) On payment date. 
D) On declaration date.

Question 8

Explain the meaning of "par value," "contributed surplus," and "preferred shares."

Accepted Answer

par value shares: Shares with a dollar v

Question 9

Burlington Corp.has a single class of shares.As at its year ended December 31,2017,the company had 5,000,000 shares issued and outstanding.On the stock exchange,these shares were trading at around $7.In the company's accounts,these shares had a value of $50,000,000.The equity accounts also show $650,000 of contributed surplus from previous repurchases of shares.
On January 15,2018,Burlington repurchased and cancelled 250,000 shares at a cost of $7 per share.Later in the year,on August 20,the company repurchased and cancelled a further 475,000 shares at a cost of $14 per share.
Required:
Record the journal entries for the two share transactions in 2018.

Accepted Answer

Note that the common shares ha

Question 10

Assume that a company issued 10,000 shares for $30/share and a par value of $5/share.1,000 shares were repurchased back at $22/share.Which statement about share repurchases and cancellation is correct?

Accepted Answer

A) Contributed surplus from the share repurchase can be netted against the contributed surplus from share issuance. 
B) Contributed surplus from the share repurchase must be separated from the contributed surplus on share issuance. 
C) Contributed surplus arising from share repurchase must be debited in this transaction. 
D) Contributed surplus from the initial share issuance must now be credited in this transaction. 
A) Contributed surplus from the share repurchase can be netted against the contributed surplus from share issuance. 
B) Contributed surplus from the share repurchase must be separated from the contributed surplus on share issuance. 
C) Contributed surplus arising from share repurchase must be debited in this transaction. 
D) Contributed surplus from the initial share issuance must now be credited in this transaction.

Question 11

Briefly describe the difference between issued and outstanding shares.

Accepted Answer

Issued shares are the net numb

Question 12

Briefly describe the primary reason why companies declare a stock split.

Accepted Answer

Companies engage in stock splits typical

Question 13

What is the meaning of "contributed capital"?

Accepted Answer

A) This is the amount received from the debt holders of the company. 
B) This is the repayment of capital to owners of the company. 
C) This is the dividends received from the owners of the company. 
D) This is the amount received from the equity holders of the company. 
A) This is the amount received from the debt holders of the company. 
B) This is the repayment of capital to owners of the company. 
C) This is the dividends received from the owners of the company. 
D) This is the amount received from the equity holders of the company.

Question 14

If a company issues 2,000 shares for $55 and then repurchases 50 shares at $50,how much is in the account "contributed surplus on retirement of shares'?

Accepted Answer

A) $ 250 
B) $ 2,750 
C) $107,250 
D) $110,000 
A) $ 250 
B) $ 2,750 
C) $107,250 
D) $110,000

Question 15

When shares are repurchased at an amount different from their original issue price,then held in treasury or cancelled,will the journal entry affect the following components?
Share capital
Contributed surplus
Treasury stock
Loss/gain on share retirement
Accumulated other comprehensive income
Appropriated reserves
Unappropriated retained earnings

Accepted Answer

The answer of When shares are repurchased at an amount...

Question 16

Which is an example of "contributed capital"?

Accepted Answer

A) Appropriated reserves. 
B) Unappropriated retained earnings. 
C) Common shares. 
D) Accumulated other comprehensive income. 
A) Appropriated reserves. 
B) Unappropriated retained earnings. 
C) Common shares. 
D) Accumulated other comprehensive income.

Question 17

Below are details relating to balances for the equity accounts of Isha Company,and changes to those balances.Note that AOCI is accumulated other comprehensive income.
   
Required:
Prepare a statement of changes in equity for the years ended December 31,2015.

Accepted Answer

Isha Company Ltd.
St

Question 18

Explain the meaning of "contributed capital" and "common share." What distinguishes a common share from a preferred share?

Accepted Answer

common share: An equity interest that ha

Question 19

Mountip Inc.was incorporated under provincial legislation with a December 31 year-end.The company has a single class of shares.As at December 31,2016,it had 150,000 shares issued and outstanding.These shares had a book value of $5,700,000 on the balance sheet.During 2017,Mountip repurchased 5% of the issued shares from one of the minority shareholders at a cost of $48 per share.The company held these in treasury and later found a buyer for half of these shares at $52.The other half were sold at $46 to another investor.
Required:
Record the share transactions using the alternative two-transaction method for treasury stock.

Accepted Answer

Two-transaction method:
Note that the ba

Question 20

Which statement about "stock dividends" is correct?

Accepted Answer

A) Only a memo entry is needed for this transaction. 
B) No entry is needed in the accounting records. 
C) A journal entry is needed for this transaction. 
D) This is the same as a stock split for accounting purposes. 
A) Only a memo entry is needed for this transaction. 
B) No entry is needed in the accounting records. 
C) A journal entry is needed for this transaction. 
D) This is the same as a stock split for accounting purposes.

Which statement about the "ex-dividend date" is correct?

How should subscriptions receivable be reported on the balance sheet and why?

Which statement about dividends is correct?

In which account would "transactions with owners" be reported?

If 10,000 shares with par value of $15/share are issued for $20/share,how much will be presented as "contributed surplus" for financial statement purposes?

What is the economic significance of "par value" for accounting purposes?

When does a company record dividends payable?

Explain the meaning of "par value," "contributed surplus," and "preferred shares."

Assume that a company issued 10,000 shares for $30/share and a par value of $5/share.1,000 shares were repurchased back at $22/share.Which statement about share repurchases and cancellation is correct?

Briefly describe the difference between issued and outstanding shares.

Briefly describe the primary reason why companies declare a stock split.

What is the meaning of "contributed capital"?

If a company issues 2,000 shares for $55 and then repurchases 50 shares at $50,how much is in the account "contributed surplus on retirement of shares'?

Which is an example of "contributed capital"?

Below are details relating to balances for the equity accounts of Isha Company,and changes to those balances.Note that AOCI is accumulated other comprehensive income. Required: Prepare a statement of changes in equity for the years ended December 31,2015.

Explain the meaning of "contributed capital" and "common share." What distinguishes a common share from a preferred share?

Which statement about "stock dividends" is correct?

Current Liabilities and Contingencies

Non-Current Financial Liabilities

Complex Financial Instruments

Earnings Per Share

Accounting for Income Taxes

Pensions and Other Employee Future Benefits

Accounting for Leases

Statement of Cash Flows

Accounting Changes

Filters

Exam 13: Equities

Which statement about the "ex-dividend date" is correct?

How should subscriptions receivable be reported on the balance sheet and why?

Which statement about dividends is correct?

In which account would "transactions with owners" be reported?

If 10,000 shares with par value of $15/share are issued for $20/share,how much will be presented as "contributed surplus" for financial statement purposes?

What is the economic significance of "par value" for accounting purposes?

When does a company record dividends payable?

Explain the meaning of "par value," "contributed surplus," and "preferred shares."

Assume that a company issued 10,000 shares for $30/share and a par value of $5/share.1,000 shares were repurchased back at $22/share.Which statement about share repurchases and cancellation is correct?

Briefly describe the difference between issued and outstanding shares.

Briefly describe the primary reason why companies declare a stock split.

What is the meaning of "contributed capital"?

If a company issues 2,000 shares for $55 and then repurchases 50 shares at $50,how much is in the account "contributed surplus on retirement of shares'?

Which is an example of "contributed capital"?

Below are details relating to balances for the equity accounts of Isha Company,and changes to those balances.Note that AOCI is accumulated other comprehensive income. Required: Prepare a statement of changes in equity for the years ended December 31,2015.

Explain the meaning of "contributed capital" and "common share." What distinguishes a common share from a preferred share?

Which statement about "stock dividends" is correct?

Current Liabilities and Contingencies

Non-Current Financial Liabilities

Complex Financial Instruments

Earnings Per Share

Accounting for Income Taxes

Pensions and Other Employee Future Benefits

Accounting for Leases

Statement of Cash Flows

Accounting Changes

Filters