FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 13: Corporations: Effects on Retained Earnings and the Income Statement

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 21

Multiple Choice

Review LaterAdd Note

Review Later

Which of the following items is NOT included in comprehensive income?

A) Net income
B) Foreign-currency translation adjustments
C) Unrealized gains or losses on certain investments
D) Contingent liabilities

Correct Answer

verified

Show Answer

Question 22

Multiple Choice

Review LaterAdd Note

Review Later

Rakish Co. purchases 3,500 shares of its own $1 par value common stock for $80 per share. Which of the following is the correct journal entry to record this transaction?

A) Debit Common stock $3,500, debit Paid-in capital $276,500 and credit Cash $280,000.
B) Debit Cash $280,000, credit Common stock $3,500 and credit Paid-in capital $276,500.
C) Debit Cash $280,000 and credit Treasury stock $280,000.
D) Debit Treasury stock $280,000 and credit Cash $280,000.

Correct Answer

verified

Show Answer

Question 23

Multiple Choice

Review LaterAdd Note

At March 31, 2014, the Park Place Company shows the following data on their balance sheet: Assume that Park Place sells 900 shares of treasury stock at $32 per share. What will the total equity be after this transaction?

If a company's lenders wanted to ensure that the company maintained adequate levels of equity to pay back their loans, a good strategy would be to impose restrictions on dividend payments and purchases of treasury stock.

Which of the following best describes other gains (losses) on the income statement?

On June 30, 2013, Stephans Company showed the following data on the equity section of their balance sheet: On July 1, 2013, Stephans distributed a 5% stock dividend. The market value of the stock at that time was $13 per share. Following this transaction, what would be the new balance in Paid-in capital in excess of par?

Please refer to the following information for Peartree Company: If Peartree resold 1,000 shares of treasury stock for $24 per share, the total equity of the company would remain unchanged.

Please refer to the following information for Peartree Company: If Peartree purchases an additional 1,000 shares of treasury stock at $18 per share, which of the following statements would be TRUE?

The entry to record an appropriation of retained earnings requires a debit to Retained earnings and a credit to Cash.

Which of the following occurs when the board of directors declares a 2-for-1 stock split on 20,000 outstanding shares of $15 par common stock?

A corporation closes a facility and moves to a new location. How would a loss on the disposal of the equipment at the closed facility be reported on an income statement?

Treasury stock is a corporation's own stock that it has issued and later reacquired.

Please refer to the following information for Peartree Company: If Peartree purchases an additional 1,000 shares of treasury stock at $18 per share, what journal entry will be required?

If a company does not have enough cash to pay out regular dividends, but still wishes to give the shareholders something that they would consider of value, the company should consider doing a stock split.

Which of the following statements is TRUE?

Which of the following occurs due to a 4-for-1 stock split?

Prior period adjustments are shown as an adjustment to the beginning balance of Retained earnings, as reported on the statement of retained earnings.

At January 1, 2014, Foxmore Company had 80,000 shares of common stock outstanding and no preferred stock. During the year, they issued 40,000 additional shares of common stock. At December 31, 2014, Foxmore had 120,000 shares of common stock outstanding, and no preferred stock. In addition, Foxmore reported the following results for the year 2014: At December 31, 2014, how much is the earnings per share for income (loss) from continuing operations? (Please round all calculations to the nearest cent.)

The treasury stock account is:

Gains and losses from the disposal of old plant and equipment are reported as other gains or losses in the multi-step income statement.