Exam 12: Income and Changes in Retained Earnings

National Corporation was organized on January 1 and issued 600,000 shares of common stock on that date.On July 1,an additional 200,000 shares were issued for cash.Net income for the year was $3,675,000.Net earnings per share amounted to:

Unique Corp.had 50,000 shares of $5 p

Accounting changes and prior period adjustment Prior period adjustments affect the income of past accounting periods.Explain how prior period adjustments are shown in the financial statements.

A large stock dividend and a stock split are similar in that they both cause a:

Earnings per share-basic and diluted Greenwich Corporation had net income of $1,712,500 in 2015.The company had 300,000 shares of $4 par value common stock and 25,000 shares of 8%,$100 par,p

Comprehensive income can be displayed to users of financial statements in which of the following way(s):

Extraordinary items are found on the income statement:

A statement of stockholders' equity discloses each of the following except:

If a material accounting error was made in a prior year,that error:

During the year 2015,Torino Corporation suffered a $1,200,000 loss when its factory was severely damaged in an earthquake.Assuming the corporate income tax rate is 30%,what amount will Torino report as an extraordinary loss on its income statement for 2015? Assume earthquakes are not common in this area.

Prior period adjustments appear in the statement of retained earnings and in the income statement for the current year.

Earnings per share figures are shown in the income statement:

To qualify as an extraordinary item,a gain or loss must:

The FASB has not compiled a comprehensive list of what is considered to be an extraordinary item,thus the determination is a matter of judgment.

Equity transactions-journal entries A partial list of the ledger accounts of Soundview Corporation is shown below,followed by a list of transactions.Indicate the accounts that would be debited and credited in recording each transaction by placing the appropriate account number(s)in the space provided.If no journal entry is required for a particular transaction,use "None."

When a small (under 10%)stock dividend is declared,the market value of the stock is transferred from Retained Earnings into other stockholder equity accounts.

The expropriation (seizure of)of a multinational company's assets by a government is an example of a discontinued operation item.

The statement of stockholders' equity discloses the amount of cash dividends as well as stock dividends declared during the current year.

Discontinued operations should be shown on the statement of retained earnings net of taxes.

An extraordinary item appears on the income statement before the section on discontinued operations.