The stockholders’ equity accounts of Bonita Company have the following balances on December 31, 2020.
Common stock, $10 par, 328,000 shares issued and outstanding | $3,280,000 | |
Paid-in capital in excess of par—common stock | 1,200,000 | |
Retained earnings | 5,720,000 |
Shares of Bonita Company stock are currently selling on the Midwest Stock Exchange at $36.
Prepare the appropriate journal entries for each of the following cases.
(a) | A stock dividend of 5% is (1) declared and (2) issued. | |
---|---|---|
(b) | A stock dividend of 100% is (1) declared and (2) issued. | |
(c) | A 2-for-1 stock split is (1) declared and (2) issued. |
Q: Describe the process of correcting an error when it’s discovered in a subsequent reporting period.
A: Correcting an error: Error correction is an adjustment to previously issued financial statements. It...
Q: The following are three independent, unrelated sets of facts relating to accounting changes. Situati...
A: Accounting error: Accounting errors can be defined as omission of the fundamental accounting princip...
Q: Dierdorf Inc., a closely held corporation, has decided to go public. The controller, Ed Floyd, is co...
A: Interim report: When the financial results are published for the year shorter than the fiscal year, ...
Q: The FASB requires a reconciliation between the effectivetax rate and the federal government’s statut...
A: Financial accounting standards board (FASB): This is the organization which creates, develops, and a...
Q: What does the rate of return on common stock show, and how is it calculated?
A: The rate of return on the common stock signifies the amount of net income that has been retained for...
Q: Which of the following is true regarding whether IFRS specifically addresses the accounting and repo...
A: IFRS:
Q: Describe the accounting for changes in estimates and changes in the reporting entity.
A: Accounting changes: When a company requires to sacrifice the consistent accounting methods and proce...
Q: In 2014, Fogg, Inc., issued $10 par value common stock for $25 per share. No other common stock tran...
A: The correct answer is Option (b).
Q: Sheffield Inc. owns shares of Tamarisk Corporation stock. At December 31, 2020, the securities were ...
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. Th...