Questions -
Q1. What is the difference between noncumulative and cumulative preferred stockholders? What does dividend in arrears mean?
Q2. Define:
Stock split
Stock dividend
Q3. How is a stock dividend different from a stock split?
Q4. Will retained earnings be affected when a company declares a stock dividend or stock split?
Q5. What is a contract rate?
Q6. What is a market rate?
Q7. What does it mean to issue bonds at par, discount, or premium?
Q8. What accounts are affected when recording the issue date of a discount bond? How about when recording interest and amortization? Please give the Journal Entries for these events
Q9. What accounts are affected when recording the issue date of a premium bond? What accounts are affected when recording interest and amortization? Please give the journal entries for these events.
Q10. What accounts are affected when a bond matures?