Exam 21: Corporate Earnings and Capital Transactions

Gender Corporation declared and issued a 10% stock dividend on December 1. Prior to the declaration, Gender's retained earnings were $200,000, shares outstanding were 20,000, $5 par value, common stock with a current market value of $10 per share. Contributed capital will increase (decrease)as a result of recording this stock dividend by:

A stock dividend transfers:

Corporations are subject to the same tax filing deadlines as individual taxpayers.

The Matt Tress Sofa Company has 11,000 shares of $2 par common stock outstanding. On August 22, 2019, a 3% stock dividend was declared to be distributed on September 30, 2019. The market value of the stock on August 22 was $21; the market value on September 30 was $18. What is the amount to be debited to the Retained Earnings account on August 22?

Declarations of cash dividends and stock dividends are debited to the Retained Earnings account.

Corporations are required to make quarterly estimated tax payments based on estimated net income and tax expense.

On August 10, 2019, a corporation received a donation of land for a future plant site. The land has a fair market value of $800,000. Record the entry to reflect the receipt of this asset as a gift on page 3 of a general journal. Omit the description.

The Deferred Income Tax account represents postponement of taxes payable to a future period.

Which of the following statements regarding the income statements of corporations is not correct?

The amount of capital acquired from capital stock transactions is referred to as-------- .

In each of the following situations, what is the amount of the profit or loss? In each situation, what accounts will be debited and credited, and for what amount, in the journal entry to close the Income Summary account? 1. The total of the debit column in the Income Statement section of the worksheet was $94,000 and the total of the credit column in that section was $104,000. 2. The total in the debit column of the Income Statement section was $200,000 and the total of the credit column was $100,000. 3. The total of the debit column in the Balance Sheet section was $53,000 and the total of the credit column in that section was $55,000.

Information from the Income Statement columns of Lincoln Corporation's worksheet on December 31, 2019, is shown below. 1. What is the amount of net income before income tax? 2. What is the amount of income tax on the net income? Use the tax rates set forth below. 3. The corporation paid $21,000 through quarterly deposits. What adjustment is recorded for Incom Tax Expense? 4. What is the amount of net income after income tax?

Which of the following statements is not correct?

The income statement of a corporation and a sole proprietorship are similar with the exception of:

The record date is the date:

The entry to record the appropriation of funds to reacquire its own stock includes a:

On the date of declaration of a stock split, a(n)----------is recorded in the general journal.

A corporation's own capital stock that has been reacquired is called--------- .

In each of the following situations, what is the amount of the profit or loss? In each situation, what accounts will be debited and credited, and for what amount, in the journal entry to close the Income Summary account? 1. The total of the debit column in the Income Statement section of the worksheet was $84,000 and the total of the credit column in that section was $74,000. 2. The total in the debit column of the Income Statement section was $600,000 and the total of the credit column was $700,000. 3. The total of the debit column in the Balance Sheet section was $90,000 and the total of the credit column in that section was $82,000.