Subsidiary stock dividendsare payable in shares of the subsidiary’s common stock require slight changes in the consolidation entries. Because stock dividends are issued proportionally to all common stockholders, the relative interests of the controlling and non-controlling stockholders does not change due to stock dividends. The investment’s carrying amount on the parent’s books also is unaffected by a stock dividends. Only change can be seen in subsidiary stockholders equity account. Although total stockholder’s equity does not change. The effect of subsidiary 15 percent stock dividends on consolidated entries.

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Answer 1

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Definition Definition Financial journal in which only cash-related transactions are recorded. Cash transactions are posted chronologically in the cash book, which is also called a subsidiary book. All the cash receipts are recorded on the debit side and all the cash payments are recorded on the credit side. An important point to remember is that the cash book never shows a credit balance; only a debit balance is shown in the cash book.

Chapter 9, Problem 9.15Q

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Introduction:Subsidiary stock dividendsare payable in shares of the subsidiary’s common stock require slight changes in the consolidation entries. Because stock dividends are issued proportionally to all common stockholders, the relative interests of the controlling and non-controlling stockholders does not change due to stock dividends. The investment’s carrying amount on the parent’s books also is unaffected by a stock dividends. Only change can be seen in subsidiary stockholders equity account. Although total stockholder’s equity does not change.

The effect of subsidiary 15 percent stock dividends on consolidated entries.

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Which of the following is a correct statement pertaining to consolidation of a subsidiary with preferred shares? O a. When preferred shares are cumulative, the preferred shareholders are only entitled to income equal to the yearly dividend, if the company has not suffered a loss for the year. O b. If the preferred shares are cumulative, the current year's net income would be allocated to the preferred shares only if dividends are declared in the year. O c. If the preferred shares are non-cumulative, the current year's net income would only be allocated to preferred shares if preferred dividends are declared. O d. If the preferred shares are non-cumulative, the current year's net income would be allocated to the preferred shares whether or not preferred dividends are declareD.

How should preferred stock of a subsidiary be shown in a consolidated balance sheet in each case? a. If it is held 100 percent by the parent. b. If it is held 50 percent by the parent and 50 percent by outside interests c. If it is held 100 percent by outside interests.

1. A company declared a cash dividend on its ordinary shares in December 2020 payable in January 2021. Retained earnings would A. increase on the date of declaration. B. not be affected on the date of payment C. not be affected on the date of declaration D. decrease on the date payment 2. Which of the following should be presented in the statement of changes in equity? A. Distributions to owners B. Investments by owners C. Change in ownership interest in subsidiary that does not result in a loss of control D. All of these are presented in the statement of changes in equity

Answer 2

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Definition Definition Financial journal in which only cash-related transactions are recorded. Cash transactions are posted chronologically in the cash book, which is also called a subsidiary book. All the cash receipts are recorded on the debit side and all the cash payments are recorded on the credit side. An important point to remember is that the cash book never shows a credit balance; only a debit balance is shown in the cash book.

Chapter 9, Problem 9.15Q

To determine

Introduction:Subsidiary stock dividendsare payable in shares of the subsidiary’s common stock require slight changes in the consolidation entries. Because stock dividends are issued proportionally to all common stockholders, the relative interests of the controlling and non-controlling stockholders does not change due to stock dividends. The investment’s carrying amount on the parent’s books also is unaffected by a stock dividends. Only change can be seen in subsidiary stockholders equity account. Although total stockholder’s equity does not change.

The effect of subsidiary 15 percent stock dividends on consolidated entries.

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Check out a sample textbook solution

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Answer 3

Question

Definition Definition Financial journal in which only cash-related transactions are recorded. Cash transactions are posted chronologically in the cash book, which is also called a subsidiary book. All the cash receipts are recorded on the debit side and all the cash payments are recorded on the credit side. An important point to remember is that the cash book never shows a credit balance; only a debit balance is shown in the cash book.

Chapter 9, Problem 9.15Q

To determine

Introduction:Subsidiary stock dividendsare payable in shares of the subsidiary’s common stock require slight changes in the consolidation entries. Because stock dividends are issued proportionally to all common stockholders, the relative interests of the controlling and non-controlling stockholders does not change due to stock dividends. The investment’s carrying amount on the parent’s books also is unaffected by a stock dividends. Only change can be seen in subsidiary stockholders equity account. Although total stockholder’s equity does not change.

The effect of subsidiary 15 percent stock dividends on consolidated entries.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 4

Question

Definition Definition Financial journal in which only cash-related transactions are recorded. Cash transactions are posted chronologically in the cash book, which is also called a subsidiary book. All the cash receipts are recorded on the debit side and all the cash payments are recorded on the credit side. An important point to remember is that the cash book never shows a credit balance; only a debit balance is shown in the cash book.

Chapter 9, Problem 9.15Q

To determine