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Exam 21: Corporations: Earnings, Taxes, Distributions, and the Retained Earnings Statement

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Question 21

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The names of stockholders entitled to receive dividends are determined on the date of payment.

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Question 22

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Match the terms with the definitions. -A statement that explains the change in the amount of retained earnings during the year.

A) cash dividend
B) date of declaration
C) date of payment
D) date of record
E) dividend
F) retained earnings appropriation
G) retained earnings statement
H) stock dividend
I) stock split

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Question 23

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Unappropriated Retained Earnings will decrease because of net losses, declarations of cash or stock dividends, and appropriations.

A stock dividend may be distributed even if the company is short of cash.

When a dividend is paid in cash, it is known as a

The owner of 100 shares of stock of a corporation with 2,000 shares of stock outstanding has a 5% interest in the total stockholders' equity. If a 20% stock dividend is declared and distributed a 5% interest in the total stockholders' equity prior to the stock dividend, would have which of the following interests in the equity after the stock dividend was distributed?

A statement of retained earnings is used to explain the change in the amount of retained earnings between two successive balance sheet dates.

Most corporations must estimate their annual income taxes and make quarterly tax payments.

The balance of the income summary account of a corporation is transferred to the capital stock account.

Which of the following would not be shown on the statement of retained earnings?

Prepare journal entries for each of the following transactions of Telecommunications, InC.Apr. 15 Declared a dividend of $1.43 per share on 11,000 shares of preferred stock outstandinG.May 19 Paid the dividend declared on April 15. ​

Upon the date of declaration of a dividend, the corporation has incurred a liability for the dividend.

A proportionate distribution of shares of a corporation's own stock to its stockholders is called a property dividend.

The journal entry made on the date of declaration of a cash dividend to common stockholders includes

Match the terms with the definitions. -A distribution of earnings by a corporation to its stockholders.

Three dates are involved in the declaration and payment of dividends-the date of declaration, the date of record, and the date of payment.

When a stock dividend is distributed, the account to be debited would be

Match the terms with the definitions. -An exchange of one share of an old issue of stock for multiple shares of a new issue with a reduced par or stated value.

Most corporations must estimate their annual income taxes and make

All of the following statements concerning appropriation of retained earnings are true EXCEPT