Which of the following activities would result in an increase in owners' equity? a. A company...
Which of the following activities would result in an increase in owners' equity?
a. A company issues new shares of stock in exchange for cash.
b. A company pays its annual dividend to its shareholders.
c. A shareholder sells his shares to another individual and realizes a gain.
d. A company receives cash as a prepayment for services.
Homework Answers
A company issues new shares of stock in exchange for cash would result in an increase in owners' equity as this transaction will increase the value of paid in capital forming part of Owners's/Stockholder's Equity
Correct answer is option A .
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Which of the following activities would result in an increase in
owners' equity?
a. A company...
Example The accounting equation is Assets = Liabilities + Owners Equity I will concentrate the following...
Example
The accounting equation is Assets = Liabilities + Owners Equity
I will concentrate the following accounting elements
in this posts: Assets and Owners Equity (specifically Revenue).
A business transaction affecting the accounting
equation is one in which we (the company) provide tax reporting
services (1040 long form) to a individual customer for $150 and the
customer pays our company cash. First, cash an ASSET account is
increased because cash is coming into the company from the
customer. To increase...
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Problem 2-Stockholders' Equity The following transactions occurred during the year for Creamy Chocolates Company. The Company...
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For each of the following transactions, indicate whether it will result in an increase, decrease, or...
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1. Which of the following sections of the statement of cash flows include activities that increase...
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which ofthe following is correct for Smith Company when Smith issues 10 000 shares of $10...
which ofthe following is correct for Smith Company when Smith issues 10 000 shares of $10 par value common stock and pays?29,000 cash in exchange for the building? Smith Company exchanges assets to acquire a building. The market price of the Smith stock on the exchange date was $27 per share and the building's book value on the books of the seller was $290,000. O Total assets increase $270.000. O Stockholders' equity increases $290.000. O Stockholders' equity increases$241,000. Total assets...
1. Which of the following would not be classified as a current liability in the balance...
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Princess Company has the following shareholders' equity on its balance sheet: Shareholders' Equity Preferred shares, $9...
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Example
The accounting equation is Assets = Liabilities + Owners Equity
I will concentrate the following accounting elements
in this posts: Assets and Owners Equity (specifically Revenue).
A business transaction affecting the accounting
equation is one in which we (the company) provide tax reporting
services (1040 long form) to a individual customer for $150 and the
customer pays our company cash. First, cash an ASSET account is
increased because cash is coming into the company from the
customer. To increase...
Problem 2-Stockholders' Equity The following transactions occurred during the year for Creamy Chocolates Company. The Company is authorized to issue 100,000 shares of common stock with a par value of $0.10 per share. During 2018, it incurred an operating loss of $2,814 million 1. 2. On July 15, 2018, the Company declared and paid a cash dividend to its common shareholders 3. On September 1, 2018, the Company declared a 15% stock dividend On October 1, 2018, the Company executed...
For each of the following transactions, indicate whether it will result in an increase, decrease, or have no effect on cash flows: (a) Decrease Repayment of mortgage payable (b) Decrease Payment of interest on mortgage (c) No Effect Purchase of land in exchange for common shares (d) Increase Issue of preferred shares for cash X Payment for the purchase of a held for trading investment that is not a cash equivalent (e) No Effect Collection of accounts receivable (f) Increase...
1. Which of the following sections of the statement of cash flows include activities that increase and decrease long-term liabilities and stockholders' equity? A) the investing section B) the non-cash investing and financing section C) the financing section D) the operating section 2. Walker Corp. uses the indirect method to prepare the statement of cash flows. Refer to the following section of the comparative balance sheet: Walker Corp. Comparative Balance Sheet December 31, 2014 and 2013 2014 2013 Increase/degrease Cash...
which ofthe following is correct for Smith Company when Smith issues 10 000 shares of $10 par value common stock and pays?29,000 cash in exchange for the building? Smith Company exchanges assets to acquire a building. The market price of the Smith stock on the exchange date was $27 per share and the building's book value on the books of the seller was $290,000. O Total assets increase $270.000. O Stockholders' equity increases $290.000. O Stockholders' equity increases$241,000. Total assets...
1. Which of the following would not be classified as a current liability in the balance sheet? (a) accounts payable (b) accounts receivable (c) accruals (d) tax payable (e) bank overdraft 2. Which of the following items should be classed as capital expenditure? (a) (b) (c) (d) (e) software maintenance depreciation of equipment research expenses purchase of an automobile interest paid on a loan to purchase inventory 3. Afirm sells goods on credit. The effect will be to (a) (b)...
Princess Company has the following shareholders' equity on its balance sheet: Shareholders' Equity Preferred shares, $9 cumulative, 4,000 issued and outstanding Common shares, 50,000 issued and outstanding Retained earnings Total shareholders' equity 4. $400,000 2,600,000 460,000 3,460,000 a. Calculate the total annual preferred dividend entitlement b. Calculate the total amount of contributed capital. c. If the company paid total dividends of S120,000 in the year, and there were no preferred dividends owing from past years, how much did the common...
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