Table 14-2
Following Is the Shareholders' Equity Section of the Balance

question 123

Multiple Choice

Table 14-2
Following is the shareholders' equity section of the balance sheet of Thomson Corporation:
$$\begin{array} { | l | r | } \hline \text { Contributed capital } & \\\hline \text { Preferred shares, } \$ 8 , \text { cumulative, } 25,000 \text { shares } & \\\hline \text { authorized, } 5,000 \text { shares issued } & \$ 516,000 \\\hline \text { Common shares, } 100,000 \text { shares authorized, } 40,000 & \\\hline \text { shares issued } & \underline { 320,000 } \\\hline \text { Total contributed capital } & 836,000 \\\hline \text { Retained earnings } & \underline { 290,000 } \\\hline \text { Total shareholders' equity } & \$ 1,126,000 \\\hline\end{array}$$ The preferred shares are currently selling for $102.25 per share and the common shares are currently selling for $11.50 per share.
-Refer to Table 14-2.The entry to record the distribution of a 10% common stock dividend includes a:

• A) debit to dividends payable for $46,000
• B) credit to common shares for $46,000
• C) debit to retained earnings for $46,000
• D) credit to cash for $46,000

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Definitions:

Consistency

The quality of always behaving or performing in a similar way, maintaining the same standards over time.

Consensus

General agreement among a group or the process of reaching such agreement, typically through discussion and negotiation.

Distinctiveness

The quality of being noticeably different and unique from others, often used to describe features, identities, or products that stand out.

Consistency

The quality of maintaining uniformity, coherence, and reliability in actions, values, methods, measures, or principles over time.