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As of December 31, 2013, Warner Corporation reported the following: Dividends payable 22,000 Treasury stock 620,000 Paid-in capital - share repurchase 22,000 Other paid-in capital
| As of December 31, 2013, Warner Corporation reported the following: |
| Dividends payable | 22,000 |
| Treasury stock | 620,000 |
| Paid-in capital - share repurchase | 22,000 |
| Other paid-in capital accounts | 4,200,000 |
| Retained earnings | 3,200,000 |
| During 2014, half of the treasury stock was resold for $244,000; net income was $620,000; cash dividends declared were $1,520,000; and stock dividends declared were $520,000. |
| The 2014 sale of half of the treasury stock would: |
| A) | Reduce retained earnings by $66,000 |
| B) | Reduce income before tax by $66,000 |
| C) | Increase total shareholders' equity by $310,000 |
| D) | Reduce retained earnings by $44,000 |
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The Audit Process Principles Practice And Cases
Authors: Iain Gray, Stuart Manson
5th Edition
1408030497, 9781408030493
