part 1.statement of comprehensive income.2

Question 1

paid in capital or contributed capital

Answer 1

is the section of stockholder’s equity that represents the amount a corporation received when it issued its share of stock.
state laws require that a corporation record and report separately the par amount of issued shares from the amount received that was greater than the par amount.
the par amount is credited to common stock.
paid in capital in excess of par value is the actual amount received less the par value and is credited to paid-in-capital in excess of par value.
cash 12,000
common stock (1,000 shares x 2) 2,000
additional paid in capital 10,000

Question 2

comprehensive income:

Answer 2

net income + other comprehensive income

Question 3

comprehensive income

Answer 3

was designed to report the change in net assets during the period from all sources other than from transactions with owners acting as owners.

Question 4

other comprehensive income items

Answer 4

• unrealized gains and losses on securities available for sale
• unrecognized pension and post retirement benefit cost and gains
• foreign currency translation adjustment
• certain deferred gains and losses from derivatives

Question 5

comprehensive income does not include

Answer 5

• retrospective effects of changes in accounting principles
• prior period adjustments.
  these two are reported as adjustments to retained earnings

Question 6

accumulated other comprehensive income

Answer 6

is the amount carried over from the previous year and then increased or decreased during the current period. this total is the running total of other comprehensive income items through the balance sheet date

us gaap requires that the total of other comprehensive income be separately displayed in the owner’s equity section of the balance sheet in an account with a tittle such as AOCI. AOCI is an owner’s equity account.

the accumulated balances of each individual component of other comprehensive income must be reported. this info must appear in the balance sheet, statement of owner’s equity of foot notes

Question 7

both retained earnings and accumulated other comprehensive income

Answer 7

are owner’s equity accounts

Question 8

net income is

Answer 8

closed to retained earnings

Question 9

other comprehensive income is

Answer 9

closed to accumulated other comprehensive income