Ch 12 - Retained Earnings(2)

Stockholders equity section of the balance sheet

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Unformatted text preview: is is a More Inclusive Statement than the Statement of Retained Earnings. Stockholders’ Equity Section of the Balance Sheet Extraordinary Items Extraordinary Items Are these considered Extraordinary Items? Effects of major natural casualties, if rare in the area. YES Effects of major natural casualties, not uncommon in the area. NO Write-down of inventories or write-off of receivables. Expropriation (takeover) of property by a foreign government. NO YES Extraordinary Items Extraordinary Items Are These Considered Extraordinary Items? Losses attributable to labor strikes. Effects of a newly enacted law or regulation, such as a condemnation action. Gains or losses from sales of property, plant, or equipment. NO YES NO Dividends Dividends Review Question Entries for cash dividends are required on the: a. Declaration Date & The Record Date. b. Record Date & The Payment Date. c. Declaration Date, Record Date, & Payment Date. d. Declaration Date & The Payment Date. Review Vista, Inc. had 300,000 Shares of common stock outstanding when a 30% Stock Dividend was Declared & Issued. How many shares were outstanding after the stock dividend? a. 390,000 b. 330,000 c. 300,000 d. 309,000 Dividends Dividends Review Question a. b. c. d. Which Of These Statements About Stock Dividends Is True? Stock dividends reduce a company’s cash balance. A stock dividend has no effect on total stockholders’ equity. A stock dividend decreases total stockholders’ equity. A stock dividend ordinarily will increase total stockholders’ equity....
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This document was uploaded on 03/12/2014 for the course ACCOUNTING 101 at Fullerton College.

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