188.Shannon Manufacturing declared a 10% stock dividend when it had 250,000 shares of $3 par value common stock outstanding. The market price per common share was $12 per share when the dividend was declared. The entry to record this dividend declaration includes a credit to
a.Retained Earnings for $75,000.
b.Paid-in Capital in Excess of Par for $225,000.
c.Common Stock for $75,000.
d.Common Stock Dividends Distributable for $300,000.
189.The following selected amounts are available for Sanders Company.
Retained earnings (beginning)$800
Net loss100
Cash dividends declared100
Stock dividends declared50
What is its ending retained earnings balance?
a.$650
b.$700
c.$550
d.$600
190.Turquoise and Topaz Sisters had retained earnings of $15,000 on the balance sheet but disclosed in the footnotes that $2,000 of retained earnings was restricted for plant expansion and $1,000 was restricted for bond repayments. Cash of $2,000 had been set aside for the plant expansion. How much of retained earnings is available for dividends?
a.$12,000
b.$13,000
c.$15,000
d.$10,000
191.Irwin, Inc. had 300,000 shares of common stock outstanding before a stock split occurred, and 900,000 shares outstanding after the stock split. The stock split was
a.3-for-9.
b.9-for-1.
c.1-for-9.
d.3-for-1.
192.Restricting retained earnings for the cost of treasury stock purchased is a
a.contractual restriction.
b.legal restriction.
c.stock restriction.
d.voluntary restriction.
193.A prior period adjustment that corrects income of a prior period requires that an entry be made to
a.an income statement account.
b.a current year revenue or expense account.
c.the retained earnings account.
d.an asset account.
194.If the board of directors authorizes a $100,000 restriction of retained earnings for a future plant expansion, the effect of this action is to
a.decrease total assets and total stockholders' equity.
b.increase stockholders' equity and decrease total liabilities.
c.decrease total retained earnings and increase total liabilities.
d.reduce the amount of retained earnings available for dividend declarations.
195.A credit balance in retained earnings represents
a.the amount of cash retained in the business.
b.a claim on specific assets of the corporation.
c.a claim on the aggregate assets of the corporation.
d.the amount of stockholders' equity exempted from the stockholders' claim on total assets.
196.A net loss
a.occurs if operating expenses exceed cost of goods sold.
b.is not closed to Retained Earnings if it would result in a debit balance.
c.is closed to Retained Earnings even if it would result in a debit balance.
d.is closed to the paid-in capital account of the stockholders' equity section of the balance sheet.
197.Prior period adjustments are reported
a.in the footnotes of the current year's financial statements.
b.on the current year's balance sheet.
c.on the current year's income statement.
d.on the current year's retained earnings statement.