![INTERMEDIATE ACCOUNTING(LL)-W/2 ACCESS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781260180657/9781260180657_smallCoverImage.gif)
INTERMEDIATE ACCOUNTING(LL)-W/2 ACCESS
9th Edition
ISBN: 9781260180657
Author: SPICELAND
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question
Chapter 18, Problem 18.10P
To determine
The amount of net income retained by a company at a particular point of time for reinvestment and pays its debts and obligations. Retained earnings are the amount of net income that is not paid as dividends to shareholders.
To indicate: The letter whether each of the transactions increases (I), decreases (D), or has no effect (N) on retained earnings.
Expert Solution & Answer
![Check Mark](/static/check-mark.png)
Want to see the full answer?
Check out a sample textbook solution![Blurred answer](/static/blurred-answer.jpg)
Students have asked these similar questions
13
Dividends paid to local shareholders are recorded in the invisible trade of current transactions
a.
True
b.
False
#60
Santo Corporation declares and distributes a cash dividend that is a result of current earnings. How will the receipt of those dividends affect the investment account of the investor under each of the following accounting methods?
Fair Value Method
Equity Method
Question 60 options:
a
No Effect
Decrease
b
Increase
Decrease
c
Decrease
No Effect
d
No Effect
No Effect
24
Analyze the following:
I – When a component of an entity was discontinued during the current year, the loss on discontinued operation should exclude operating loss during the period.
II – Dilution of EPS is defined as decrease in earnings per share when convertible instruments are assumed "converted" to ordinary shares.
III – Failure to record depreciation at year-end results in understated income.
Given these, we can conclude that:
Group of answer choices
Only statements I and III are true.
Only statement II is false.
Statement III is false.
Only statements I and II are true.
Chapter 18 Solutions
INTERMEDIATE ACCOUNTING(LL)-W/2 ACCESS
Ch. 18 - Identify and briefly describe the two primary...Ch. 18 - Prob. 18.2QCh. 18 - Prob. 18.3QCh. 18 - Prob. 18.4QCh. 18 - Prob. 18.5QCh. 18 - Prob. 18.6QCh. 18 - Prob. 18.7QCh. 18 - What is meant by a shareholders preemptive right?Ch. 18 - Terminology varies in the way companies...Ch. 18 - Most preferred shares are cumulative. Explain what...
Ch. 18 - The par value of shares historically indicated the...Ch. 18 - Prob. 18.12QCh. 18 - How do we report components of comprehensive...Ch. 18 - The balance sheet reports the balances of...Ch. 18 - At times, companies issue their shares for...Ch. 18 - Prob. 18.16QCh. 18 - The costs of legal, promotional, and accounting...Ch. 18 - When a corporation acquires its own shares, those...Ch. 18 - Discuss the conceptual basis for accounting for a...Ch. 18 - The prescribed accounting treatment for stock...Ch. 18 - Brandon Components declares a 2-for-1 stock split....Ch. 18 - What is a reverse stock split? What would be the...Ch. 18 - Suppose you own 80 shares of Facebook common stock...Ch. 18 - Prob. 18.24QCh. 18 - Comprehensive income LO181 Schaeffer Corporation...Ch. 18 - Stock issued LO184 Penne Pharmaceuticals sold 8...Ch. 18 - Prob. 18.3BECh. 18 - Prob. 18.4BECh. 18 - Prob. 18.5BECh. 18 - Retirement of shares LO185 Agee Storage issued 35...Ch. 18 - Treasury stock LO185 The Jennings Group...Ch. 18 - Prob. 18.8BECh. 18 - Prob. 18.9BECh. 18 - Cash dividend LO188 Real World Financials...Ch. 18 - Effect of preferred stock on dividends LO187 The...Ch. 18 - Property dividend LO187 Adams Moving and Storage,...Ch. 18 - Stock dividend LO188 On June 13, the board of...Ch. 18 - Prob. 18.14BECh. 18 - Stock split LO188 Refer to the situation...Ch. 18 - Prob. 18.16BECh. 18 - Comprehensive income LO182 The following is from...Ch. 18 - Prob. 18.2ECh. 18 - Earnings or OCI? LO182 Indicate by letter whether...Ch. 18 - Stock issued for cash; Wright Medical Group LO184...Ch. 18 - Issuance of shares; noncash consideration LO184...Ch. 18 - Prob. 18.6ECh. 18 - Share issue costs; issuance LO184 ICOT Industries...Ch. 18 - Reporting preferred shares LO184, LO187 Ozark...Ch. 18 - Prob. 18.9ECh. 18 - Prob. 18.10ECh. 18 - Retirement of shares LO185 In 2018, Borland...Ch. 18 - Treasury stock LO185 In 2018, Western Transport...Ch. 18 - Treasury stock; weighted-average and FIFO cost ...Ch. 18 - Prob. 18.14ECh. 18 - Prob. 18.15ECh. 18 - Prob. 18.16ECh. 18 - Transact ions affecting retained earnings LO186,...Ch. 18 - Effect of cumulative, nonparticipating preferred...Ch. 18 - Stock dividend LO188 The shareholders equity of...Ch. 18 - Prob. 18.20ECh. 18 - Cash in lieu of fractional share rights LO188...Ch. 18 - Prob. 18.22ECh. 18 - Transact ions affecting retained earnings LO186...Ch. 18 - Profitability ratio LO181 Comparative balance...Ch. 18 - Prob. 18.25ECh. 18 - Various stock transactions; correction of journal...Ch. 18 - Share buybackcomparison of retirement and treasury...Ch. 18 - Reacquired sharescomparison of retired shares and...Ch. 18 - Prob. 18.4PCh. 18 - Shareholders equity transactions; statement of...Ch. 18 - Prob. 18.6PCh. 18 - Prob. 18.7PCh. 18 - Prob. 18.8PCh. 18 - Effect o f preferred stock characteristics on...Ch. 18 - Prob. 18.10PCh. 18 - Stock dividends received on investments;...Ch. 18 - Various shareholders equity topics; comprehensive ...Ch. 18 - Prob. 18.13PCh. 18 - Prob. 18.1BYPCh. 18 - Prob. 18.2BYPCh. 18 - Research Case 184 FASB codification; comprehensive...Ch. 18 - Judgment Case 185 Treasury stock; stock split;...Ch. 18 - Prob. 18.6BYPCh. 18 - Prob. 18.7BYPCh. 18 - Prob. 18.8BYPCh. 18 - Prob. 1CCTC
Knowledge Booster
Similar questions
- ting Standards Sec-1 with B Shivakumar for Sem II 2021 C021-3/ Topic 3/ Quiz 2 Redemption of preference shares by a company is classified under investing activities of its cash flow statement Select one: of O True O False stion Next page pagearrow_forwardAttempt in Progress Your answer is incorrect. If a company has trading securities, it will report unrealized changes in their value O only when sold. O directly in shareholders' equity. O as part of income. O on the income statement only if there is a loss. eTextbook and Media Save for Later Attempts: 1 of 2 used Submit Ans %24 % 4. 5 7 8 9 t y u f h karrow_forward← → C #becausesneaker.... HW CH 17 v2.cengagenow.com/ilrn/take... Custom Order Appendix: Income statement and earnings per share for discontinued operations Apex Inc. reports the following for a recent year: Income from continuing operations before income tax expense Loss from discontinued operations Weighted average number of shares outstanding Applicable tax rate *Net of any tax effect. Apex Inc. Partial Income Statement For the Year Ended December 31 ☆ Check My Work * I Apex Inc. Partial Income Statement For the Year Ended December 31 Earnings per common share: a. Prepare a partial income statement for Apex Inc., beginning with income from continuing operations before income tax expense. $670,000 $120,000* 60,000 40% b. Determine the earnings per common share for Apex Inc., including per-share amounts for unusual items. Enter answers in dollars and cents, rounding to the nearest whole cent. Du + : ?arrow_forward
- PFRS 9 permits an entity to make an irrevocable election to present in other comprehensive income changes in the fair value of an investment in an equity instrument. Amounts presented in othercomprehensive income1. May be subsequentlv transferred to profit or loss.2. Shall be subsequently transferred to retained earnings. a. Neither 1 nor 2 b. Either 1 or 2 c. 1 only d. 2 onlyarrow_forward#15 Analyze the following: I – If interim financial statements are presented, only a statement of financial position and a statement of comprehensive income are required. II – Under cash to accrual and single-entry accounting related problems, accounts payable, trade notes payable, and advances to suppliers are prepared under one ledger because all these accounts are related to company supplier/s. III – When dilutive convertible bonds are the only potential ordinary shares, diluted EPS will be greater if the bonds are actually converted than not converted. Given these, we can conclude that: Group of answer choices Only statements I and II are true. Only statements I and III are true. Only statement II is false. Statement III is false.arrow_forwardDetermine if this shall result in recognition of liabilities 7. declaration of share dividends on ordinary shares a. yes b. noarrow_forward
- Q39 Return that a shareholder gets from the company, out of its profits, on his shareholdings, is called a. Dividends b. Retained Earnings c. Return on Shareholdings d. Return on Earningsarrow_forward60 Analyze the following: I – Cumulative preference dividends in arrears should be reported as a note disclosure. II – Depreciable assets which are part of the component held for sale shall be depreciated. III – According to PAS 10, date of authorization for FS issuance is when the board of directors approves the release of financial statements regardless of the approval of the stockholders. Given these, we can conclude that: Group of answer choices Only statement I is true. Only statement II is false. Only statements II and III are false. Only statement III is false.arrow_forwardProblem 19-9 (Static) EPS from statement of retained earnings [LO19-4, 19-5, 19-6] Comparative Statements of Retained Earnings for Renn-Dever Corporation were reported as follows for the fiscal years ending December 31, 2019, 2020, and 2021. RENN-DEVER CORPORATION Statements of Retained Earnings For the Years Ended December 31 2021 2020 2019 Balance at beginning of year Net income (loss) $6,794, 292 3,308,700 $5,464,052 2,240,900 $5,624,552 (160,500) Deductions: Stock dividend (34,900 shares) Common shares retired, September 30 (110,000 shares) Common stock cash dividends 242,000 212,660 698,000 889,950 Balance at end of year $8,971,042 $6,794, 292 $5,464,052 At December 31, 2018, paid-in capital consisted of the following: $1,855,000 Common stock, 1,855,000 shares at $1 par Paid in capital-excess of par 7,420,000 No preferred stock or potential common shares were outstanding during any of the periods shown. Required: Compute Renn-Dever's earnings per share as it would have appeared in…arrow_forward
- Current Attempt in Progress X Your answer is incorrect. A corporation recognizes a gain or loss O only when bonds are converted into common stock. O when bonds are converted into common stock and when they are redeemed before maturity. O only when bonds are redeemed before maturity. O when bonds are redeemed at or before maturity. eTextbook and Media Save for Later Attempts: 1 of 2 used Submit Answer & 6 8 9 у g h b in marrow_forward17. If an SME declares dividends to holders of its equity instruments after the end of the reporting period, the SME a. shall not recognize those dividends as a liability at the end of the reporting period. b. may recognize those dividends as a liability at the end of the reporting period. c. may present the dividends declared as a segregated component of retained earnings at the end of the reporting period. d. a and barrow_forwardwhich one is correct please confirm? QUESTION 17 Several regulations limit dividend payments. Which of the following do not limit dividend payments? a. Net earnings restriction b. Liability restriction c. Capital impairment restriction d. Restrictive covenantsarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you