Exam 14: Corporate Reporting: Income,earnings Per Share,and Retained Earnings

The Kids Exchange Corporation issued common shares for $35 each.Two years later,on June 10,1,000 shares were repurchased and retired at a cost of $25 each.Present the general journal entry to record the June 10 transaction.

A share dividend increases the number of previously outstanding shares.

The following data were obtained from Cook the Books Accounting Inc.: The number of outstanding shares is:

A change in accounting policy will be presented on the:

A share dividend reduces the number of previously outstanding shares.

On July 31,Fly by Night Airline Ltd's equity was: Also note that on July 31 the market value of Fly by Night Airline's shares was $15 per share.The directors considered declaring a 10% or 20% share dividend and wanted to know what effect each share dividend would have on total equity.Calculate the balances that should be in the following accounts after a share dividend distribution.

A share dividend is a distribution of corporate assets as a dividend that returns part of the original investment to shareholders.

Kriton Corporation had net income of $375,000 and paid preferred dividends of $80,000.Kriton had 50,000 common shares outstanding.Calculate the earnings per share.

As part of the year-end closing process the Share Dividends account is closed to Retained Earnings.

When a corporation calls in its outstanding shares and issues more than one new share in exchange for each old share,this is a:

Hard Wok Cafe Corporation has 100,000 common shares outstanding.The following transactions related to the company's shares took place during the year: Prepare the journal entries to record the transactions.

The act of a corporation to call in its shares and issue one new share in the place of more than one share previously outstanding is a:

A share dividend is a corporation's distribution of its own shares to its shareholders without receiving any payment in return.

Just before Amigone Funeral Homes Inc.issued a 10% share dividend on November 1,the following data were collected: The amount that total equity will increase (decrease)as a result of recording the share dividend is:

On January 10,Clampett Corporation purchased 5,000 shares of its own common shares at $78 per share (to be held as treasury shares).On August 4,1,000 of the treasury shares were sold at $80 per share.No other treasury share transactions have been made by the corporation. Prepare the journal entries to record the January 10 purchase and the August 4 sale.

Shares that are reacquired and are not cancelled by the issuing corporation are called:

A share dividend transfers:

A share dividend is never a(n)________________ on a balance sheet because it will never reduce _______________.

Companies use share dividends:

Purchasing treasury shares reduces retained earnings.