Question I-A(2 marks) On June 30, 2014, Nordair Inc's reported its capital accounts as follows:...
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Question I-A(2 marks) On June 30, 2014, Nordair Inc's reported its capital accounts as follows: $1,600,000 3,200,000 Common Shares, no par, 40,000 shares outstanding Retained Earnings If a $2 per share cash dividend were declared but not paid. The capital accounts' balances would show revised balances as follows: a. Common Shares: $1,520,000 and Retained Earnings: $3,280,000. b. Common Shares: $1,600,000 and Retained Earnings: $3,120,000. c. Common Shares: $1,600,000 and Retained Earnings: $3,200,000. d. Common Shares: $1,520,000 and Retained Earnings: $3,120,000. e. None of the above. 1. 2. A 10% stock div idend was declared and distributed. Just prior to the date of declaration, the shares 3 were traded at $65 per share. The capital accounts' balances would show revised balances as follows: a. Common Shares: S1,760,000; Retained Earnings: $2,940,000 and Contributed Surplus: $100,000. b. Common Shares: $1,860,000 and Retained Earnings: $2,940,000. c. Common Shares: $1,836,364 and Retained Earnings: $2,963,636. d. Common Shares: $1,760,000 and Retained Earnings: $3,460,000 e. None of the above. 9 9 Question LB(8 marks)
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