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What kind of transaction is "appropriated reserves"?


A) An example of "par value" preferred shares.
B) An example of a transaction with owners.
C) An example of a "retained earnings."
D) An example of a "other comprehensive income."

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Which of the following statements is correct?


A) Common shares have priority over preferred shares.
B) All issued shares are eligible to vote for the board of directors.
C) The number of shared issued > number outstanding > number authorized.
D) A share with cumulative dividends must be a preferred share.

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D

Which statement about a "treasury shares" is correct?


A) The "single transaction method" treats the reacquisition as the end of the initial share issuance transaction.
B) The "two transaction method" decreases the contributed surplus when the repurchased shares are later resold.
C) The "two transaction method" treats the reacquisition and subsequent sale as one cycle for accounting.
D) The "single transaction method" treats the reacquisition and subsequent sale as two parts of the same transaction.

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Assume that a company issued 10,000 shares for $30 and a par value of $1/share.What entry would be required to record the repurchase and cancellation of 1,000 shares at $28/share?


A) Debit to common shares for $28,000.
B) Debit to common shares for $1,000.
C) Credit to contributed surplus for $29,000.
D) Credit to contributed surplus for $1,000.

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Elville Inc.was incorporated under provincial legislation with a December 31 year-end.The company has a single class of shares.As at December 31,2016,it had 900,000 shares issued and outstanding.These shares had a book value of $18,000,000 on the balance sheet. During 2017,Elville repurchased 10% of the issued shares from one of the minority shareholders at a cost of $25 per share.The company held these in treasury and later found a buyer for half of these shares at $30.The other half were sold at $21 to another investor. Required: Record the share transactions using the single-transaction method for treasury stock,which is the preferred accounting method.

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Single transaction m...

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Golf Is for Nerds Inc.sells 20,000 no-par value common shares for $8.00 each on a subscription basis.Terms of the sale require the purchaser to pay $3.00 per share when the contract is signed and the balance in three months' time. Required: Prepare the journal entries at (a)the date of signing the contract; (b)the date that the remaining payment is made; (c)the date the shares are transferred.

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Key Corp has a October 31 year-end.On October 2,2017,the board of directors declared a cash dividend of $1.50 per common share,payable on November 24,2017.The date of record for this dividend is November 17,and the ex-dividend date is November 15,2017.Additional information relating to the shares follows: Key Corp has a October 31 year-end.On October 2,2017,the board of directors declared a cash dividend of $1.50 per common share,payable on November 24,2017.The date of record for this dividend is November 17,and the ex-dividend date is November 15,2017.Additional information relating to the shares follows: Required: a.Determine the dollar amount of dividends to be paid as a result of the dividend declaration on October 2,2017. b.Record all the journal entries related to this dividend in 2017. Required: a.Determine the dollar amount of dividends to be paid as a result of the dividend declaration on October 2,2017. b.Record all the journal entries related to this dividend in 2017.

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a.Dividends are paid only on shares outs...

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Here is an extract of a trial balance for Zoe and Zia Inc.Indicate which accounts would be under the "contributed capital" section of the balance sheet. Here is an extract of a trial balance for Zoe and Zia Inc.Indicate which accounts would be under the contributed capital section of the balance sheet.

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blured image_TB1321_00...

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What is the economic significance of "par value" for accounting purposes?


A) The par value determines the amount of contributed surplus.
B) Par value has no economic significance for accounting purposes.
C) Par values determines the amount of cash received from investors.
D) Par value shares are not permitted under IFRS or ASPE.

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Explain what a "property dividend" is and why it is not common.Under what circumstances would a property dividend be advisable?

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A property dividend arises when,instead of cash,companies pay dividends using non-cash assets.This method of distributing value to shareholders is uncommon because different investors will value the distributed property differently,and some may not appreciate it at all.For example,a cookie manufacturer could send its shareholders boxes of cookies,which could be a problem if a shareholder owned many shares.More practically,a property dividend could be used to transfer assets from a subsidiary to a parent company.

Which statement about cash dividends is correct?


A) The date of declaration is the date that determines which shareholders will receive the dividends.
B) The date of declaration is the date on which the Board of Directors declares a dividend and the company has an obligation to pay the dividend.
C) The date of record is the date when the funds for the dividend are transferred to shareholders.
D) The company must record a journal entry on the date of declaration, the date of record and the date of payment.

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Contrast the different treatment between IFRS and ASPE with respect to property dividends.

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IFRIC 17 states that the property should...

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What is the "ex-dividend" date for the Toronto Stock Exchange?


A) 2 business days after the declaration date.
B) 2 business days after the date of record.
C) 2 business days before the date of record.
D) 2 business days before the declaration date.

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What are three potential outcomes for defaults on share subscriptions?

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(i)refund the cash paid and cancel the c...

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If a company issues 2,000 shares for $55 and then repurchases 50 shares at $50 and subsequently purchases another 50 shares at $60 each,how much is in the account "contributed surplus on retirement of shares"?


A) $250
B) $0
C) $107,250
D) $110,000

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If 10,000 shares with par value of $15/share are issued for $20/share,how much will be presented as "common shares" for financial statement purposes?


A) $10,000
B) $50,000
C) $150,000
D) $200,000

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Which statement about a "reverse stock split" is correct?


A) The economic position of the investors is diluted after a stock split.
B) The economic position of the investors is increased after a stock split.
C) The economic position of the investors is decreased after a stock split.
D) The economic position of the investors is unaffected after a stock split.

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What does "priority" mean?


A) Higher priority confers preferential payout before lower priority claimants.
B) Refers to the amount of payment that will be made upon bankruptcy.
C) Lower priority confers preferential payout before higher priority claimants.
D) Debtors will be paid after the equity holders if there is a bankruptcy.

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IAS 1,Presentation of Financial Statements,stipulates that a complete set of financial statements includes a statement of changes in equity for the period.The statement of changes in equity provides information about the changes that took place during the period in all equity accounts.List the four equity accounts.

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Contributed Capital,...

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Which statement about contributed surplus is correct?


A) Contributed surplus can only arise from the issuance of shares.
B) Contributed surplus can arise from the issuance of stock options.
C) Contributed surplus arising from share repurchase gives rise to a debit journal entry.
D) Contributed surplus arising from share issuance gives rise to a debit journal entry.

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