What occurs when a corporation declares a stock dividend?
stockholders' equity remains unchanged
A corporation suffers a loss from a discontinued operation of $60,000. The company is subject to a tax rate of 40%. which of the following describes the tax effect of the loss?
The loss results in a tax savings of $24,000.
What are the conditions that must be true for an event to b considered extraordinary?
The event must be both infrequent and unusual to be considered extraordinary.
Stock dividends are declared by the:
board of directors of the company.
A company issued 40,000 shares of $5 common stock at $8. The company has now issued a 5% stock dividend when the market price of the stock is $10 a share. What is the amount transferred from the Retained earnings account to the Paid-in capital accounts as
$20,000
A company originally issued 40,000 shares of $5 common stock at $8. The company has now issued a 5% stock dividend when the market price of the stock is $10 a share. What is the amount to be credited to the Common stock account when the shares are distrib
$10,000
A company originally issued 10,000 shares of $5 common stock at $7. The board of directors declares a 10% stock dividend when the market price of the stock is $9 a share. Which of the following is included in the entry to record the stock dividend?
retained earnings is debited for $9,000
A company originally issued 10,000 shares of $20 common stock at $22. The board of directors declares a 15% stock dividend when the market price of the stock is $25 a share. Which of the following is included in the entry to record the stock dividend?
retained earnings is debited for $37,500.
A company originally issued 50,000 shares of $5 common stock at $9. The board of directors declares a 10% stock dividend when the market price of the stock is $10 a share. Which of the following shows the net effect of the stock dividend?
Retained earnings is decreased, common stock is increased and paid-in capital is increased.
What occurs due to a 4-for-1 stock split?
The par value of each share of common stock is 25% of the par value before the split.
What would be included in the entry to record a 2-or-1 stock split?
There is no journal entry to record a stock split.
What occurs when the board of directors declares a 2-for-1 stock split on 20,000 outstanding shares of $15 par common stock?
Outstanding shares increase to 40,000
What occurs when a 2-for-1 stock split is declared?
the balance in common stock remains the same
ABC has 45,000 shares of $10 par common stock outstanding. They offer a stock split of 4-for-1. The effect of the split will be:
par drops to $2.50, total shares go to 180,000.
How is treasury stock reported on the balance sheet?
treasury stock is a contra stockholders' equity account
A corporation originally issued $5 par value stock for $6 per share. Which of the following would be included in the entry to record the reacquisition of 200 shares for $8 per share?
Treasury stock would be debited for $1,600.
A corporation originally issued $8 par value stock for $9 per share. It reacquired the stock for $10 per share. Which of the following would be included in the entry to record the reissue of 20 shares for $11 per share?
Treasury stock is credited for $200.
The corporation has acquired treasury stock for $10 per share. Which of the following would be included in the entry to record the corporation's reissue of 8,000 shares of its common stock for $13 per share?
Paid-in capital from treasury stock transactions would be credited for $24,000.
TRUE or FALSE: a restriction or appropriation of retained earnings does not affect total retained earnings.
a restriction or appropriation of retained earnings does not affect total retained earnings.
Retained earnings represent:
net incomes retained by the business.