Advanced Financial Accounting
11th Edition
ISBN: 9780078025877
Author: Theodore E. Christensen, David M Cottrell, Cassy JH Budd Advanced Financial Accounting
Publisher: McGraw-Hill Education
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Chapter 9, Problem 9.19P
To determine
Subsidiary stock dividends:the dividends payable on shares of the subsidiary common stock require slight changes in the consolidation entries used in preparing consolidated financial statements. Because stock dividends are issued proportionally to all common stockholders, the relative interest of controlling and non-controlling does not change as a result of stock dividends.
In the preparation of consolidated financial statements for the period of issue of dividends by subsidiary, should be eliminated along with the increased common stock and interest additional paid-in capital, if any. As only parent’s dividends are viewed as dividends of the consolidated entity.
The consolidation entries required to prepare consolidated
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ON JANUARY 1, VERMONT CORPORATION HAD 39,600 SHARES OF $10
PAR VALUE COMMON STOCK ISSUED AND OUTSTANDING. ALL 39,600
SHARES HAD BEEN ISSUED IN A PRIOR PERIOD AT $21 PER SHARE. ON
FEBRUARY 1, VERMONT PURCHASED 1,020 SHARES OF TREASURY
STOCK FOR $28 PER SHARE AND LATER SOLD THE TREASURY SHARES
FOR $19 PER SHARE ON MARCH 1. THE JOURNAL ENTRY TO RECORD
THE PURCHASE OF THE TREASURY SHARES ON FEBRUARY 1 WOULD
INCLUDE A: A. CREDIT TO A GAIN ACCOUNT FOR $7,140 B. CREDIT TO
TREASURY STOCK FOR $28,560 C. DEBIT TO TREASURY STOCK FOR
$28,560 D. DEBIT TO A LOSS ACCOUNT FOR $7,140 NEED ENTRY IN
TABLE FORMAT WHICH STATEMENT BELOW REGARDING A SHARE
REPURCHASE IS TRUE? A. THE COMPANY REPURCHASING SHARES IS
NOT ENTITLED TO VOTE. B. REPURCHASING SHARES SHRINK A
COMPANY'S ASSETS AND EQUITY. C. A SHARE REPURCHASE GROWS A
COMPANY'S ASSETS AND EQUITY. D. REPURCHASING SHARES
INCREASES RETAINED EARNINGS.
On January 1, 2020, Leilanie Company reported the following shareholders' equity:
Share capital
1,500,000
Share premium
3,000,000
Retained earnings 5,000,000
The entity had 400,000 authorised shares of P5 par value, of which 300,000 shares were issued and outstanding.
On March 1, the entity acquired 50,000 shares for P10 per share to be held as treasury.
On July 1, the entity declared a property dividend of inventory payable on July 31. The inventory had a P1,200,000 carrying amount anda fair value of P1,500,000 on July 1
The net income for 2020 was P3,000,000.
How much is the appropriated retained earnings?
Select the correct response
O500,000
O 400.000
O 250,000
O 450,000
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On January 1, 2020, LeiLanie Company reported the following shareholders' equity:
Share capital
1,500,000
Share premium
3,000,000
Retained earnings 5,000,000
The entity had 400,000 authorised shares of P5 par value, of which 300,000 shares were issued and outstanding.
On March 1, the entity acquired 50,000 shares for P10 per share to be held as treasury.
On July 1, the entity declared a property dividend of inventory payable on July 31. The inventory had a P1,200,000 carrying amount and a fair value of P1,500,000 on July 1.
The net income for 2020 was P3,000,000
How many shares are issued and outstanding?
Select the correct response:
O250,000
O 350,000
O 300,000
O 400,000
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Chapter 9 Solutions
Advanced Financial Accounting
Ch. 9 - Prob. 9.1QCh. 9 - Prob. 9.2QCh. 9 - Prob. 9.3QCh. 9 - Prob. 9.4QCh. 9 - Prob. 9.5QCh. 9 - Prob. 9.6QCh. 9 - Prob. 9.7QCh. 9 - Prob. 9.8QCh. 9 - Prob. 9.9QCh. 9 - Prob. 9.10Q
Ch. 9 - Prob. 9.11QCh. 9 - Prob. 9.12QCh. 9 - Prob. 9.13QCh. 9 - Prob. 9.14QCh. 9 - Prob. 9.15QCh. 9 - Prob. 9.16QCh. 9 - Prob. 9.1CCh. 9 - Prob. 9.2CCh. 9 - Prob. 9.3CCh. 9 - Prob. 9.4CCh. 9 - Prob. 9.5CCh. 9 - Multiple-Choice Questions on Preferred Stock...Ch. 9 - Prob. 9.1.3ECh. 9 - Multiple-Choice Questions on Preferred Stock...Ch. 9 - Prob. 9.2.1ECh. 9 - Prob. 9.2.2ECh. 9 - Prob. 9.2.3ECh. 9 - Prob. 9.2.5ECh. 9 - Prob. 9.3ECh. 9 - Prob. 9.4ECh. 9 - Prob. 9.5ECh. 9 - Prob. 9.6ECh. 9 - Prob. 9.7ECh. 9 - Prob. 9.8ECh. 9 - Prob. 9.9ECh. 9 - Prob. 9.10ECh. 9 - Prob. 9.11ECh. 9 - Subsidiary Stock Dividend Lake Company reported...Ch. 9 - Prob. 9.13ECh. 9 - Prob. 9.14ECh. 9 - Prob. 9.15ECh. 9 - Prob. 9.16ECh. 9 - Multiple-Choice Questions on Preferred Stock...Ch. 9 - Prob. 9.17.2PCh. 9 - Multiple-Choice Questions on Preferred Stock...Ch. 9 - Prob. 9.17.4PCh. 9 - Prob. 9.17.5PCh. 9 - Prob. 9.18PCh. 9 - Prob. 9.19PCh. 9 - Prob. 9.20PCh. 9 - Prob. 9.21PCh. 9 - Prob. 9.22PCh. 9 - Prob. 9.23PCh. 9 - Prob. 9.24PCh. 9 - Prob. 9.25PCh. 9 - Prob. 9.26PCh. 9 - Prob. 9.27P
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