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Prior period adjustments are reported 1. If the board of directors authorizes a $1,000,000 restriction of retained earnings for a future plant expansion, the effect of this action is to a. decrease total assets and total stockholders' equity. b. increase stockholders' equity and decrease total liabilities. c. decrease total retained earnings and increase total liabilities. d. reduce the amount of retained earnings available for divid ...

Other / Other 06 Apr 2016

Assume that all balance sheet amounts for Hiro Company 1. The return on common stockholders’ equity is computed by dividing a. net income by ending common stockholders’ equity. b. net income by average common stockholders’ equity. c. net income less preferred dividends by ending common stockholders’ equity. d. net income less preferred dividends by average common stockholders’ equity. 2. Cooney ...

Other / Other 06 Apr 2016

Farmer Company reports the following amounts 1. Paiva Corporation splits its common stock 2 for 1, when the market value is $80 per share. Prior to the split, Paiva had 100,000 shares of $10 par value common stock issued and outstanding. After the split, the par value of the stock a. remains the same. b. is reduced to $2 per share. c. is reduced to $5 per share. d. is reduced to $20 per share. 2. Which of the following statements ...

Other / Other 06 Apr 2016

The entry to record the transaction 1. CCCR Inc., has 2,000 shares of 6%, $50 par value, cumulative preferred stock and 100,000 shares of $1 par value common stock outstanding at December 31, 2013, and December 31, 2014. The board of directors declared and paid a $4,000 dividend in 2013. In 2014, $24,000 of dividends are declared and paid. What are the dividends received by the common stockholders in 2014? a. $16,000 b. $12,000 c. $8,0 ...

Other / Other 06 Apr 2016

The date a cash dividend becomes a binding legal 1. Each of the following statements is correct except that earnings per share is reported a. below net income. b. for both common and preferred stock. c. on the face of the income statement. d. based on the weighted-average number of common shares outstanding. 2. Blanco, Inc. has a net income of $300,000 for 2014, and there are 200,000 weighted-average shares of common stock outstan ...

Other / Other 06 Apr 2016

A statement of comprehensive income is presented 1. The accounting is essentially the same under IFRS and GAAP for a. prior period adjustments. b. revaluation surplus. c. treasury stock. d. All of the answer choices are correct. 2. The income statement using IFRS is called the statement of a. profit and loss. b. financial position. c. earnings. d. comprehensive income. 3. A statement of comprehensive income is presented in ...

Other / Other 06 Apr 2016

Indicate the balances in the stockholders’ equity 1 Farber Company has 24,000 shares of $1 par common stock issued and outstanding. The company also has 2,000 shares of $100 par 4% cumulative preferred stock outstanding. The company did not pay the preferred dividends in 2013 or 2014. What amount of dividends must the company pay the preferred shareholders in 2015 if they wish to pay the common stockholders a dividend? 2 On ...

Other / Other 06 Apr 2016

Corporations report which of the following in a separate section 1. Assume that all balance sheet amounts for Carolina Company represent average balance figures. Stockholders’ equity—common $360,000 Total stockholders’ equity 800,000 Sales revenue 400,000 Net income 76,000 Number of shares of common stock 40,000 Common stock dividends 24,000 Preferred stock dividends 4,000 What is the earnings per share fo ...

Other / Other 06 Apr 2016

Restricting retained earnings for the cost of treasury stock 1. The following selected amounts are available for Vizio Company. Retained earnings (beginning) $1,600 Net loss 300 Cash dividends declared 200 Stock dividends declared 200 What is its ending retained earnings balance? a. $1,300 b. $1,400 c. $900 d. $1,200 2. Kramer Co. had retained earnings of $30,000 on the balance sheet but disclosed in the footnotes that $ ...

Other / Other 06 Apr 2016

The return on common stockholders' equity is computed 1. Retained earnings is increased by each of the following except a. net income. b. prior period adjustments. c. some disposals of treasury stock. d. All of these increase retained earnings. 2. A prior period adjustment for understatement of net income will a. be credited to the Retained Earnings account. b. be debited to the Retained Earnings account. c. show as a gain on th ...

Other / Other 06 Apr 2016