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

question 119

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 60% common stock dividend when the shares have a current market price of $15 per share includes a:

• A) debit to common dividends payable for $360,000
• B) credit to common stock dividend distributable for $360,000
• C) debit to retained earnings for $360,000
• D) credit to common shares for $360,000

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Definitions:

Two-factor Theory

Describes emotional experience as a combination of two components: physical arousal and a cognitive label applied to explain the arousal.

Mirror-image Perceptions

A term referring to the mutual views often held by conflicting people, where each side sees itself as ethical and peaceful and views the other as evil and aggressive.

Physical Attractiveness

How much a person's physical attributes are regarded as attractive or pleasing to the eye.

Self-esteem

An individual's perception of their self-worth or esteem.