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An extraordinary gain should be reported as a direct increase
to which of the following?
Question 16
Poe Co. had 300,000 shares of common stock issued and
outstanding at December 31, 2004. No common stock was
issued during 2005.On January 1, 2005, Poe issued 200,000
shares of nonconvertible preferred stock. During 2005, Poe
declared and paid $75,000 cash dividends on the common stock
and $60,000 on the preferred stock. Net income for the year
ended December 31, 2005 was $330,000. What should be Poe's
2005 earnings per common share?
Question 17
On December 1, 2005, Clay Co. declared and issued a 6% stock
dividend on its 100,000 shares of outstanding common stock.
There was no other common stock activity during 2005. What
number of shares should Clay use in determining earnings per
share for 2005?
Question 18
Wyatt Co. has a probable loss that can only be reasonably
estimated within a range of outcomes. No single amount within
the range is a better estimate than any other amount. The loss
accrual should be
Question 19
On September 1, 2005, Cano & Co., a U.S. corporation, sold
merchandise to a foreign firm for 250,000 francs. Terms of the