DateMar. 2, Year 2CashAccount NameOct. 1, Year 2Dividend RevenueTo record dividends received.CashInvestment in StockGain on Sale of InvestmentTo record sale of investment.Dec. 31, Year 2 Unrealized Gain or Loss-IncomeFair Value Adjustment--Equity SecuritiesTo adjust the FVA account.< <Dr.Cr.1,040001,0404,000003,200080000 x00 xe. Indicate items and amounts that should be reported on the Year 2 income statement and year-end balance sheet.Note: Use a negative sign to indicate a loss.Income StatementOther Revenues(Expenses)Dividend revenueYear 21,040Net gain (loss) on equity securities0 xBalance Sheet, Dec. 31, Year 2AssetsInvestment in equity securitiesCheck45,120

Dividend Revenue: $1,040 (This is the amount received from dividends.)Net gain (loss) on equity…

Answered: Date Mar. 2, Year 2 Cash Account Name…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 15MC: Stockholders equity consists of which of the following? A. bonds payable B. retained earnings and...

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1. It represents the cumulative balance of periodic earnings, dividend distributions, prior period adjustments and other capital adjustments. a. Income summaryb. net incomec.dividends d. accumulated profits 2. The date on which liability for dividends must be recorded a. Date of recordb.Date of issuance c.Date of payment d. Declaration date 3. The amount attributable to every share of ordinary share capital outstanding during the period. a. Par value b. Stated value c. Carrying value d. Bookvalue 4. The date which determines who gets the dividend a. Date of payment b. Date of declaration c. Date of record d. Date of issuance 5. How is the treasury share account presented in the Statement of Financial Position? a. deducted from accumulated profitsb. deducted from shareholders’ equityc. part of reservesd. current asset
6. Unrealized gains and losses on investments in trading securities are reported a. as a current assetb. on the income statementc. on the balance sheet as part of stockholders' equityd. as a contra asset
The equity method of accounting for investments requires a.the investment to be increased by the reported net income of the investee b.the investment to be reported at its original cost c.a year-end adjustment to revalue the stock to lower of cost or market d.the investment to be increased by the dividends paid by the investee
13. For available-for-sale equity securities, receipt of a cash dividend would be reported as a. a reduction from retained earningsb. an increase in the investments available for sale accountc. a reduction in the investments available for sale accountd. dividend revenue
View Policies Current Attempt in Progress Retained earnings is increased by each of the following except O prior period adjustments. O some disposals of treasury stock. Chall of these increase retained earnings. O net income. eTextbook and Media Save for Later Attempts: 0 of 2 %23 24 2 3 4. 8 W e y h a
In column A, identify the account to which element it belongs whether Current Asset (CA), Noncurrent Assets (NCA), Current Liabilities (CL), Noncurrent liabilities (NCL) or Shareholders’ equity (SHE). In column B, indicate the line item to which the account belongs. Column A Column B1. Share Capital2. Accounts Payable 3. Plant Expansion Fund4. Trading Securities 5. Employees income tax payable6. Goodwill 7. Raw Materials8. Share Premium 9. Advances from customers 10. Serial bonds not collectible currently 11. Investment in Bonds 12. Notes Payable 13. Prepaid Insurance 14. Income Tax Payable 15. Land
ESPAÑOL INGLÉS FRANCÉS Undeclared dividends (in arrears) to cumulative preferred stockholders must be filed to. in the notes to the financial statements. b. as an increase in current debts. С. as an increase in long-term debt. Enviar co Guardado Contribuir
Calculate the ending balance for owner's equity: Beginning Balance Investments Distributions Ending Balance 23,853 7,134 18,085 ?
4 Comprehensive income includes all changes in equity during a period EXCEPT ______________ Select one: a. those resulting from investments by owners and distributions to owners. b. unrealized gains and losses on available for sale securities. c. gains and losses from irregular items. d. gains and losses from discontinued operations.
1. Which of the following would never affect retained earnings? a. Correction of a prior period errorsb. Payment of long-term indebtednessc. Stock dividendd. Reissue of treasury shares 2. Appropriation for accumulated profits, if reflected in separate account, shall be shown as a. Component of equity as part of share premiumb. Component of total liabilities as current liabilityc. Component of total assets as noncurrent assetsd. Component of equity as part of reserves 3. An appropriation of accumulated profits for possible contingencies should be a. Charged with all losses related to that contingencyb. Transferred to income as losses are realizedc. Shown within shareholders’ equity in the statement of financial positiond. Classified in the liability section of the statement of financial position4. When preference share is cumulative, preferred dividends not declared in a period are a. called dividends in arrearsb. Distribution of earningsc. never paidd. considered a liability 5.…
3. Account classification. ASSETS a. Current assets b. Long-term investments c. Plant and equipment d. Intangibles e. Other assets LIABILITIES AND CAPITAL f. Current liabilities g. Long-term liabilities h. Preferred stock i. Common stock j. Additional paid-in capital k. Retained earnings 1. Items excluded from balance sheet Using the letters above, classify the following accounts according to the preferred and ordinary balance sheet presentation. 1. Bond sinking fund 2. Purchase 3. Accumulated Depreciation 4. Bonds payable (due 12/31/2021) 5. Premium on common stock 6. Trading debt investments 7. Inventory 8. Prepaid Insurance Expense 9. Patents 10. Unearned rent revenue
d. mutual agency for stockholders 20. Stockholders' equity a. is usually equal to cash on hand b. is shown on the income statement c. includes paid-in capital and liabilities d. includes retained earnings and paid-in capita blec bise

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