31) Corrections to the beginning balance of retained earnings for errors of an earlier period are called:
A) cumulative error adjustments
B) prior-period adjustments
C) extraordinary items
D) discontinued items
32) Prior-period adjustments are:
A) added to beginning balance of retained earnings
B) added to or deducted from the beginning balance of retained earnings
C) deducted from ending balance of retained earnings
D) added to or deducted from net income
33) The 2011 entry to record the correction of an understatement of the 2010 net income includes a:
A) debit to Retained Earnings
B) credit to Retained Earnings
C) debit to Income Summary
D) credit to Income Summary
34) The amount of cash dividends
declared
during the period and the amount of cash dividends
paid
during the period are reflected in the:
A) income statement and cash flow statement, respectively
B) statement of shareholders' equity and income statement, respectively
C) statement of shareholders' equity and the cash flow statement, respectively
D) cash flow statement and statement of shareholders' equity, respectively
35) All of the following might be found on a statement of shareholders' equity
except:
A) earnings-per-share information
B) cash dividends
C) repurchased share purchases
D) net income
36) A statement of shareholders' equity would
not
include which type of transaction?
A) inventory acquired for cash
B) land exchanged for common shares
C) repurchased shares reissued by the corporation
D) stock dividends declared by the board of directors
37) On January 1, 2010, Proven Technology Corporation's common shares account had a balance of $250,000, representing 25,000 shares issued at $10 per share. On May 15, 2010, 12,000 shares were issued for $150,000 cash. On August 31, 2010, a 10% stock dividend was declared and distributed. What is the balance in Common Shares appearing on the statement of shareholders' equity on December 31, 2010?
A) $440,000
B) $300,000
C) $400,000
D) $415,000
38) On January 1, 2011, Guided Light Corporation's Retained Earnings account had a balance of $275,000. During 2011, cash dividends of $50,000 were declared and stock dividends with a market value of $40,000 were declared. Net income for 2011 amounted to $120,000. What is the balance in Retained Earnings appearing on the statement of shareholders' equity on December 31, 2011?
A) $305,000
B) $185,000
C) $395,000
D) $345,000
39) On January 1, 2010, Assembly System Corporation's Retained Earnings account had a balance of $675,000. During 2010, cash dividends of $25,000 and stock dividends with a market value of $55,000 were declared and distributed. Assembly System Corporation had a net loss of $5,000 in 2010. What is the balance in Retained Earnings that would appear on Assembly System Corporation's statement of shareholders' equity on December 31, 2010?
A) $670,000
B) $595,000
C) $615,000
D) $590,000
40) On January 1, 2010, Bogie Corporation had 40,000 common shares outstanding issued at $16 each during 2006. On June 1, 2010, Bogie Corporation issued 5,000 shares of its common shares at $15 per share. On September 30, 2010, Bogie Corporation repurchased 3,000 shares of its common shares for $17 per share. On November 30, 2010, Bogie Corporation reissued 2,000 shares of repurchased shares at $18 per share. The balance in Share Capital on December 31, 2010, as shown on the statement of shareholders' equity, is:
A) $640,000
B) $700,000
C) $703,333
D) $756,000