Exam 5: Introduction to Corporations

Indicate the respective effects of the declaration of a cash dividend on the following balance sheet sections:

No par value shares are shares that have NOT been assigned any specific value.

Authorized share capital is the amount of the shares that are issued to the shareholders.

Trainor Corporation was organized on January 1, 2020. During its first year, the corporation issued 20,000 preferred shares with a $ 0.30 dividend entitlement and 200,000 common shares, both at $ 1 per share. At December 31, the corporation's year end, Trainor declared the following cash dividends: Instructions a) Calculate the total dividends and the amount paid to each class of shares, assuming the preferred dividend is not cumulative. b) Calculate the total dividends and the amount paid to each class of shares, assuming the preferred dividend is cumulative. b). c) Journalize the declaration of the cash dividend at December 31, 2022 using the assumption of part

A corporation is a legal entity that is combined with the owner's economic circumstances.

The following information is taken from the trial balance of GlaxonSmith Supplies Ltd. at December 31, 2021, the company's year end. GlaxonSmith has a 15% tax rate. Instructions Prepare the income statement and statement of retained earnings for GlaxonSmith for the year ended December 31, 2021.

The date on which a cash dividend becomes a binding legal obligation is on the

During its first year of operations, Millwoods Enterprises Inc. had the following transactions related to its common shares: Jan 5 Issued 5,000 common shares to Michelle Vogel for $ 1 each. Mar 15 Issued 10,000 common shares in exchange for equipment transferred from Vogel. The equipment was valued at $ 40,000. Apr 10 Issued 3,500 shares to a consulting firm for management consulting services as settlement of a $ 14,000 invoice. Sep 30 Issued 4,000 common shares to Renee Vogel for $ 5 each. Instructions a) Journalize the share transactions. b) Calculate the average cost of the common shares of Millwoods Enterprises Inc. at December 31.

Return on equity will assist a company to measure its cash flow.

The ways that a corporation can be classified by purpose are