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Study Resources (Accounting)

53) Lindall Corporation reported the following income statement items for the year ended December 31, 2014: Discontinued operations: Operating income6,000  Loss on disposal(50,000) Prior-period correction40,000 All items above are shown before tax effects. Lindall Corporation is subject to a 25% tax rate. Assume income from continuing operations is $396,000. Show the correct presentation of these.
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  A) relevant and reliable B) revenue recognition and matching C) other comprehensive income 5) Income disclosure required by IFRS but not ASPE 6) IFRS criteria for allowing changes in accounting policy 7) What is the impact of IFRS on the income statement and statement of shareholders' equity? 1) Sampson Corporation reports the following transactions for 2013: Jan..
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  Match the following. A) retained earnings B) declaration date of dividend C) stock dividend D) stock split E) reverse stock split 57) An account whose balance is the cumulative, lifetime earnings of a company less its cumulative losses and dividends              58) An increase in the number of outstanding shares coupled with a proportionate reduction in the.
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26) Refer to Table 13-1. The total shareholders' equity as of December 31, 2014 was: A) $190,000 B) $846,500 C) $881,500 D) $821,500 Table 13-6   The following selected list of accounts with their normal balances was taken from the general ledger of Gore Ltd. as of December 31, 2014: Cash $199,000 Common shares, 10,000 shares authorized, 5,000 shares.
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1) Two common profitability measures are rate of return on total assets and rate of return on common shareholders' equity. 2) The groups that invest money to finance a corporation are the shareholders and creditors. 3) Borrowing at a lower rate than the return on investments is called using leverage. 4) The ________.
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70) Refer to Table 14-5. The total contributed capital after the declaration of a 20% common stock dividend is: __________. 71) Refer to Table 14-5. The balance of retained earnings after the declaration of a 10% common stock dividend is: __________. 72) Refer to Table 14-5. The balance of retained earnings after.
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  Match the following. A) market value B) book value 17) Amount of shareholders' equity on the company's books for each share of its stock. 18) The price for which a person could buy or sell a share 19) Sibley Corporation's balance sheet reported the following shareholders' equity at December 31, 2014:           Preferred shares, $3,.
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4)  The difference between unissued shares and treasury shares is that treasury shares have been issued and bought back. 5) When repurchased shares are sold, retained earnings could be credited in the journal entry. 6) A corporation purchases 200 of its common shares for $12 per share. Subsequently, all 200 shares.
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16) The interest rate that investors demand for loaning money is the: A) effective interest rate B) stated interest rate C) contract interest rate D) straight-line rate 17) The entry to record the issuance of bonds at par value includes a: A) debit to Discount on Bonds Payable B) credit to Premium on Bonds Payable C) debit to.
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41) Refer to Table 14-2. The total contributed capital after the distribution of a 60% common stock dividend is: A) $290,000 B) $1,196,000 C) $1,126,000 D) $836,000 42) Refer to Table 14-2. The entry to record the distribution of a 60% common stock dividend when the shares have a current market price of $15 per.
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19) Losses due to restructuring costs would be shown as: A) operating expenses B) prior-period adjustments C) other gains and losses D) extraordinary items 20) Refer to Table 14-4. How would the gain from the sale of the machine appear on a multiple-step year end income statement? A) $8,000, as part of other gains and losses B).
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33) Narrow Corporation began 2014 with the following account balances: Retained earnings950,000 In  2014, Arrow Corporation reported the following transactions: Jan. 10Reacquired 5,000 of its own shares for $20 per share.   Mar20Reacquired 2,000 of its own shares for $25 per share. 30Sold 4,000 of the reacquired shares for $22 per share. Record journal entries for.
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3) An appropriation of retained earnings involves setting cash aside for a specific purpose. 4) An appropriation of retained earnings requires a journal entry. 5) Under Accounting Standards for Private Enterprises (ASPE) a change in accounting policy should be applied retrospectively by adjusting period financial statements. 6) Changing an estimate, such as the.
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13) The declaration of a common stock dividend will appear on which of the following financial statements? A) income statement B) balance sheet C) statement of retained earnings D) either the balance sheet or the income statement 14) Which of the following BEST describes the appropriation of retained earnings? A) Earmarking certain amounts for specific business.
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  Table 13-11 The following accounts and related balances of ETH Engineering Ltd. are as at December 31, 2014 prior to the closing journal entries. Trademark, net $     17,000 Preferred Shares, $2.50, 20,000 authorized and issued 200,000 Cash 320,000 Accounts Receivable, net 265,000 Accrued Liabilities 42,000 Long-term Note Payable 500,000 Inventory 350,000 Retained Earnings/(Deficit) (1,197,000) Accounts Payable 75,000 Interest Expense 35,000 Property, Plant, and Equipment, net 2,800,000 Common Shares, 300,000 shares authorized; 175,000 shares.
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  Table 13-10 Samson Ltd. reported the figures shown below for 2013 and 2014: 2013 2014 Income statement:   Interest expense $     13,000 $     14,000   Net income 176,000 182,000 Balance sheet:   Total assets 897,000 952,000   Preferred shares, $2.00,  cumulative, $80 liquidation value,   1,500 shares outstanding 112,500 112,500   Common shares, 25,000 outstanding 488,000 524,000   Retained earnings 65,000 85,000 Dividends on the preferred share have not been declared for 2013 and 2014. 11).
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31) Resco Corporation has had 10,000 shares of $3, cumulative preferred shares outstanding as well as 35,000 common shares since it was incorporated. During the first, second, and third years of operations, $15,000, $18,000 and $50,000 in dividends, respectively, were paid. The dividends paid to the common shareholders in year.
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31) A stock dividend will: A) reduce assets B) reduce shareholders' equity C) increase liabilities D) have no effect on total assets, shareholders' equity, or liabilities 32) Common stock dividend distributable is a: A) contra liability account B) shareholders' equity account C) liability account D) contra equity account 33) The common stock dividend distributable account will appear on the balance.
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51) The following information was taken from the accounting records of Jamboree Ltd. at December 31, 2014. The company uses a periodic inventory system. The income tax rate is 40%. Preferred shares, $2.50, 100,000 shares authorized, 4,000 shares issued $  150,000 Retained earnings, balance as of January 1, 2014239,000 Purchases 975,000 Loss on sale of.
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29) Cardinal Corporation reports net income for 2013 of $100,000. Cardinal Corporation had outstanding for all of 2013 10,000 shares of cumulative $5 preferred shares. On January 1, 2013, Cardinal had outstanding 50,000 common shares. On October 1, 2013, Cardinal Corporation issued 20,000 common shares for cash. Earnings per share.
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65) EverClean Corporation reported the following shareholders' equity on January 1, 2014: Contributed capital Preferred shares, $2.50, cumulative, 30,000 shares authorized, 7,500 shares issued $  393,750 Common shares, 200,000 shares authorized, 135,000 shares issued   607,500   Total contributed capital1,001,250 Retained earnings   218,500         Total shareholders' equity$1,219,750 a) On June 15, 2014, the board of directors declared a.
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  A) record date B) dividend C) declaration date of dividend D) cumulative preferred shares E) payment date of dividend 40) Distribution of equity to the corporation's shareholders 41) The date with respect to a cash dividend that determines which shareholder will be receiving the dividend 42) The date with respect to a cash dividend where the liability.
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11) Dividends become a liability of the corporation: A) on the payment date B) on the date of record C) on the declaration date D) on the day immediately following the date of declaration 12) The dividends  payable liability of the corporation is eliminated: A) on the payment date B) on the date of record C) on the.
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37) Prepare a journal entry for each of the following transactions. a) Masters Corporation sells 10,000 common shares for  $13.25 per share. b) Masters Corporation sells 5,000 shares of $5, cumulative preferred shares for $55 per share. c) Received a building with a market value of $160,000, and issued 6,400 common shares in.
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22) JenStar Research Inc. ended 2013 with Retained Earnings of $30,000. During 2014, the company earned net income of $135,000 and declared dividends of $15,000. The company ended 2013 with $80,000 in common shares and $10,000 in $2 preferred shares. Additional common shares were sold in 2014 for $20,000. Complete.
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  Table 14-6 Following is the shareholders' equity section of the balance sheet of Thomson Corporation: Contributed capital          Preferred shares, $6, cumulative,  25,000 shares                authorized, 7,000 shares issued $    700,000          Common shares, 1,000,000 shares authorized, 500,000                shares issued 2,500,000                Total contributed capital 3,200,000 Retained earnings 990,000         Total shareholders' equity $4,190,000 The preferred shares are currently selling for.
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  Table 13-11 The following accounts and related balances of ETH Engineering Ltd. are as at December 31, 2014 prior to the closing journal entries. Trademark, net $     17,000 Preferred Shares, $2.50, 20,000 authorized and issued 200,000 Cash 320,000 Accounts Receivable, net 265,000 Accrued Liabilities 42,000 Long-term Note Payable 500,000 Inventory 350,000 Retained Earnings/(Deficit) (1,197,000) Accounts Payable 75,000 Interest Expense 35,000 Property, Plant, and Equipment, net 2,800,000 Common Shares, 300,000 shares authorized; 175,000 shares.
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47) London Corporation had 50,000 common shares outstanding and 10,000 shares of $5, cumulative, preferred shares outstanding on January 1, 2015. On March 31, 2015, London Corporation sold 10,000 common shares for $25 per share. On June 30, 2015, London Corporation sold 5,000 common shares for $26 per share. London.
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28) A $1,000 bond quoted at 102.5 is selling for: A) $1,025.00 B) $1,000.25 C) $1,000.00 D) $1,250.00 29) Given a contract interest rate of 8.5%, and a market interest rate of 7.75%, the bonds will be issued at: A) par B) a premium C) a discount D) a premium or a discount, depending on the date 30) Given a.
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21) Kelly Corporation has experienced profits greater than losses in the past four years since incorporation. Which of the following is true? A) Retained earnings has a debit balance at the end of the fourth year. B) Retained earnings has a credit balance at the end of the fourth year. C) Retained earnings.
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  Table 13-11 The following accounts and related balances of ETH Engineering Ltd. are as at December 31, 2014 prior to the closing journal entries. Trademark, net $     17,000 Preferred Shares, $2.50, 20,000 authorized and issued 200,000 Cash 320,000 Accounts Receivable, net 265,000 Accrued Liabilities 42,000 Long-term Note Payable 500,000 Inventory 350,000 Retained Earnings/(Deficit) (1,197,000) Accounts Payable 75,000 Interest Expense 35,000 Property, Plant, and Equipment, net 2,800,000 Common Shares, 300,000 shares authorized; 175,000 shares.
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11) The declaration of a stock dividend creates a current liability for the corporation. 12) Common stock dividend distributable is a liability account on the balance sheet. 13) Common stock dividend distributable is an equity account on the balance sheet. 14) A stock split reduces the number of outstanding shares. 15) In a 3.
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6) Alpha Corporation issued $100,000 face value, 10-year, 8% bonds on October 1. Interest is payable each April 1 and October 1. Accrued interest on December 31 amounts to $2,000. 7) The buy-and-sell transactions between investors do not involve the company that issued the bond. 8) The journal entry to record selling.
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11) The interest rate that determines the amount of cash interest the borrower pays each year to the bondholder is the: A) stated interest rate B) effective interest rate C) market interest rate D) explicit interest rate 12) Which of the following describes a serial bond? A) A bond that repays principal in installments B) A bond.
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7) The book value of preferred shares is equal to: A) liquidation value minus any dividends in arrears B) liquidation value plus any dividends in arrears C) market value minus any dividends in arrears D) market value plus any dividends in arrears Table 13-4   The shareholders' equity section of the balance sheet of Cresco Corporation follows:                              .
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14) A corporation repurchases 200 of its common shares initially issued for $6 per share for $7 per share. The entry to record the reacquisition requires a debit to: A) contributed surplus-shares repurchase for $200 B) common shares for $1,200 C) common shares for $1,400 D) retained earnings for $1,200 15) A corporation repurchases 1,000.
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1) Dividends distributed increase the assets and decrease the retained earnings of the business. 2) Cash dividends decrease both the assets and the retained earnings of a corporation. 3) The entry on the payment date for a cash dividend involves a debit to retained earnings and a credit to cash. 4) Dividends become.
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1) The retained earnings account is a reservoir of cash. 2) The retained earnings account equals all previous periods' net earnings plus any dividends declared less prior losses. 3) Retained earnings can be invested by shareholders. 4) All dividends declared by a corporation require a payment of cash. 5) Stock dividends are similar to.
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