Part 1

11. How would the declaration of a 20 percent stock dividend by Jets Corporation affect each of the following accounts on Jets' balance sheet?

Retained Earnings Total Stockholders equity

a.DecreaseDecrease

b.DecreaseNo effect

c.No effectDecrease

d.No effectNo effect

12. A restriction of retained earnings is most likely to be required by

a.incurring a net loss in the current year.

b.incurring a net loss in the prior year.

c.purchasing treasury stock.

d.reissuing treasury stock.

13. How would the declaration of a liquidating dividend by a corporation affect each of the following?

Contributed Total Stock-holders' Equity

Capital

a.No effectDecrease

b.DecreaseNo effect

c.No effectNo effect

d.DecreaseDecrease

14. How would retained earnings be affected by the declaration of each of the following?

Stock Dividend Stock Split

a.DecreaseDecrease

b.No effectDecrease

c.No effectNo effect

d.DecreaseNo effect

15. How would the declaration of a 10 percent stock dividend by a corporation affect each of the following on its books?

Retained Earnings Total Stock-holders' Equity

a.DecreaseNo effect

b.DecreaseDecrease

c.No effectDecrease

d.No effectNo effect

16. On September 20, 2022, Nozzle Corporation declared the distribution of the following dividend to its stockholders of record as of September 30, 2022:

Investment in 100,000 shares of Astro Corporation stock, carrying value 600,000; fair market value on September 20, 1,450,000; fair market value on September 30, 1,575,000.

The entry to record the declaration of the property dividend would include a debit to Retained Earnings of

a.1,575,000.

b.1,450,000.

c.850,000.

d.600,000.

Part 2

1. Please provide a summary of IFRS 2.

2. Please provide a summary of IFRS 16.