Concept introduction:
Stocks (Common Stock and Preferred Stock):
These are two types of the share capital of a company. Common Stock represents the Common shares issued to the shareholders and preferred stock represents the
Cash dividend:
The Cash dividend is the amount of dividend paid to shareholders in cash. The Cash dividend is declared first and paid later. There are two
To calculate:
The balance of
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Chapter 10 Solutions
Cornerstones of Financial Accounting
- Prince Corporations accounts provided the following information at December 31, 2019: What should be the current balance of retained earnings? a. 520,000 b. 580,000 c. 610,000 d. 670,000arrow_forwardThe December 31, 2021, adjusted trial balance for the Blueboy Cheese Corporation is presented below. Debits 14,600 345,000 14,500 54,000 640,000 Account Title Credits Cash Accounts receivable Prepaid rent Inventory Office equipment Accumulated depreciation Accounts payable Notes payable (due in six months) Salaries payable Interest payable Common stock Retained earnings Sales revenue 266,000 78,000 72,000 7,800 2,400 400, 000 165,000 780,000 Cost of goods sold Salaries expense Rent expense Depreciation expense Interest expense Advertising expense 468,000 117,000 43, 500 64,000 4,800 5,800 1,771, 200 1,771, 200 Totals Required: 1-a. Prepare an income statement for the year ended December 31, 2021. 1-b. Prepare a classified balance sheet as of December 31, 2021. Re LA Reg 1a Re 2 Prepare an incoe statement for the year anded December 31, 2021. BLUEBOY CHEESE CORPORATION Income Satement For the Year Ended December 31, 221arrow_forwardWhat is ending Retained Earnings on this company's statement of retained earnings? What is the correct title for this company's balance sheet? a. Balance Sheet, Talbridge Ltd., Year ended December 31, 2021 b. Talbridge Ltd., Balance Sheet, December 31, 2021 c. Talbridge Ltd., Balance Sheet, Year ended December 31, 2021 d. December 31, 2021, Balance Sheet, Talbridge Ltd. e. Talbridge Ltd., December 31, 2021, Balance Sheet Enter the letter that corresponds to your choice. (A B C D E) What is total current assets on this company's balance sheet? What is the correct order for the current assets section of this company's balance sheet? a. Cash (end of year), Accounts receivable, Prepaid insurance, Supplies, Website design, Business licence b. Cash (beginning of year), Accounts receivable, Prepaid insurance, Supplies c. Cash (end of year), Accounts receivable, Prepaid insurance, Supplies d. Cash (beginning of year), Accounts receivable, Prepaid expenses,…arrow_forward
- What should be the amount stated as Ending Retained Earnings on the Statement of Retained Earnings given the following information? Beginning Retained Earnings: $100 Revenue: $692 Expense: $370 Dividends: $87arrow_forwardThe liability for a dividend is recorded on which of the following dates? a.last day of the fiscal year b.date of declaration c.date of payment d.date of recordarrow_forwardTotal assets on a balance sheet prepared on any date mustagree with which of the following?a. The sum of total liabilities and net income as shown onthe income statement.b. The sum of total liabilities and common stock.c. The sum of total liabilities and retained earnings.d. The sum of total liabilities and common stock andretained earnings.arrow_forward
- Find the: 1. The balance of the “Shareholders’ Equity” account of the company’s balance sheet as of December 31, 2021 2. The book value per share of the company’s share as of December 31, 2021.arrow_forwardRevenues and expenses may be transferred to the ________ account before their final transfer into the Retained Earnings account. A. Dividends B. Income Summary C. Net Income D. Assetsarrow_forwardThe income statement should be prepared Oa. after the retained earnings statement and before the balance sheet Ob. before the retained earnings statement and balance sheet Oc. after the balance sheet and before the retained earnings statement Od. after the retained earnings statement and balance sheetarrow_forward
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