Exam 21: Corporate Earnings and Capital Transactions

The cost of treasury stock is deducted from the sum of all items in the ____________________ section of the balance sheet.

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

Information from the Income Statement columns of King Corporation's worksheet on December 31, 2013, is shown below.

After all revenue and expense accounts, other than Income Tax Expense, have been extended to the Income Statement section of the worksheet of Carlton Corporation, the net income is determined to be $75,000. Using the following corporate income tax rates, compute the corporation's federal income taxes payable. (Assume that the firm's taxable income is the same as its income for financial accounting purposes.) Taxable Income Tax Rate First \ 50,000 15 percent Next \ 25,000 25 percent Next \ 25,000 34 percent Next \ 235,000 39 percent Over \ 335,000 See IRS publications

A corporation has paid estimated income taxes of $9,000 during the year 2013. At the end of the year, the corporation's tax bill is computed to be $10,000. Record the entry to adjust the Income Tax Expense account on page 6 of a general journal. Omit the description.

An appropriation of retained earnings represents

To be entitled to receive a cash dividend, an investor must be listed as an owner of the stock on the ____________________ date.

The following information was taken from the accounting records of the Gemini Corporation on December 31, 2013. Using this information, prepare the Stockholders' Equity section of the corporation's balance sheet.

Which of the following statements is not correct?

A stock ____________________ increases the number of shares of stock outstanding and decreases the par value, or stated value, per share proportionally.

Match the accounting terms with the description by entering the proper number.

The entry to record the declaration of a cash dividend consists of a debit to

A corporation has paid estimated income taxes of $57,500 during the year 2013. At the end of the year, the corporation's tax bill is computed to be $52,100. Record the entry to adjust the Income Tax Expense account on page 6 of a general journal. Omit the description.

The entry to record the payment of a cash dividend includes a debit to Retained Earnings and a credit to Cash.

Information from the Income Statement columns of Lincoln Corporation's worksheet on December 31, 2013, is shown below. Sales \ 920,000. Purchases 620,000. Selling Expense 140,000. Income Tax Expense ? General and Administrative Expense \ 90,000 Amortization of Organization. Costs 600. Income Summary 170,000 Income Summary 210,000. 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. What adjustment is recorded for Income Tax Expense? The corporation paid $21,000 through quarterly deposits. 4. What is the amount of net income after income tax? Taxable Income Tax Rate First \ 50,000 15 percent Next \ 25,000 25 percent Next \ 25,000 34 percent Next \ 235,000 39 percent Over \ 335,000 See IRS publications

After all revenue and expense accounts, other than Income Tax Expense, have been extended to the Income Statement section of the worksheet of Tyler Corporation, the net income is determined to be $50,000. Using the following corporate income tax rates, compute the corporation's federal income taxes payable. (Assume that the firm's taxable income is the same as its income for financial accounting purposes.) Taxable Income Tax Rate First \ 50,000 15 percent Next \ 25,000 25 percent Next \ 25,000 34 percent Next \ 235,000 39 percent Over \ 335,000 See IRS publications

When a corporation purchases its own stock and intends to reissue that stock at a later date, the cost of the shares is shown in the Assets section of the balance sheet until the stock is reissued.

The entry to record the declaration of a stock split includes a debit to Retained Earnings.

On August 10, 2013 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.

Information from the Income Statement columns of Leland Corporation's worksheet on December 31, 2013, is shown below. Sales \ 460,000 Purchases 310,000 Selling Expense 70,000 Income Tax Expense ? General and Administrative Expense \ 45,000 . Amortization of Organization Costs 300 . Income Summary 85,000 Income Summary 105,000 . 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. What adjustment is recorded for Income Tax Expense? The corporation paid $8,400 through quarterly deposits. 4. What is the amount of net income after income tax? Taxable Income Tax Rate First \ 50,000 15 percent Next \ 25,000 25 percent Next \ 25,000 34 percent Next \ 235,000 39 percent Over \ 335,000 See IRS publications