"Many states require a corporation to restrict retained earnings for the cost of treasury stock purchased."...
"Many states require a corporation to restrict retained earnings for the cost of treasury stock purchased." What does this mean?
Homework Answers
It means that some states do not allow corporation to purchase it's own shares by using it's retained earnings
It can be viewed from a different angle. It may be possible that corporation wants to satisfy it's common stockholders dividend expectation but for some reasons may not do it through dividend route may choose to pay such Cash by purchasing it's own shares from the stockholders for instance, it may have not paid dividend to cumulative preferred stock holder in such a case it would not be able to pay dividend to common stockholders as well but by purchasing treasury stock it may bypass such restriction that is why some states require a corporation to restrict retained earnings for the cost of treasury stock purchase.
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"Many states require a corporation to restrict retained earnings
for the cost of treasury stock purchased."...
help with finding retained earnings and treasury stock Ivanhoe Company has two classes of capital stock...
help with finding retained earnings and treasury stock
Ivanhoe Company has two classes of capital stock outstanding: 8%, $20 par preferred and $5 par common. At December 31, 2020, the following accounts were included in stockholders' equity. Preferred Stock, 152,200 shares Common Stock, 2,039,000 shares Paid-in Capital in Excess of Par-Preferred Stock Paid-in Capital in Excess of Par-Common Stock Retained Earnings $3,044,000 10,195,000 202,000 26,684,000 4,587,000 The following transactions affected stockholders' equity during 2021. Jan. 1 32,600 shares of preferred...
Problem 11-2A Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 [The...
Problem 11-2A Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 [The following information applies to the questions displayed below.] Kohler Corporation reports the following components of stockholders' equity on December 31, 2015: Common stock-$10 par value, 100,000 shares authorized, 50,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings $ 500,000 80,000 430,000 Total stockholders' equity $1,010,000 In year 2016, the following transactions affected its stockholders' equity accounts. Jan....
Question 10 The sale of treasury stock cannot result in an increase in Retained Earnings, the...
Question 10 The sale of treasury stock cannot result in an increase in Retained Earnings, the crediting of Paid-in Capital, Treasury Stock. the debiting of Paid-in Capital, Treasury Stock. an increase in total stockholders' equity.
Exercise 11-21 Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Alexander...
Exercise 11-21 Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Alexander Corporation reports the following components of stockholders' equity at December 31, 2018. Common stock-$25 par value, 50,000 shares authorized, 33,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 825,000 66,000 350,000 $1,241,000 During the year, the following transactions affected its stockholders' equity accounts. Jan. 2 Purchased 3,300 shares of its own stock at...
Exercise 11-21 Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Alexander...
Exercise 11-21 Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Alexander Corporation reports the following components of stockholders' equity at December 31, 2018. Common stock-$25 par value, 50,000 shares authorized, 33,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings $ 825,000 66,000 350,000 $1,241,000 Total stockholders' equity During the year, the following transactions affected its stockholders' equity accounts. 2 Purchased 3,300 shares of its own stock at $25...
Check my wo Exercise 11-18 Cash dividends, treasury stock, and statement of retained earnings LO C3,...
Check my wo Exercise 11-18 Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Alexander Corporation reports the following components of stockholders' equity on December 31, 2016 points Common stock-$25 par value, 60,000 shares authorized, 36,000 shares issued and outstanding Paid in capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 900,000 22. 361,000 $1.333.000 eBook In year 2017, the following transactions affected its stockholders' equity accounts Jan. 2 Purchased 3,000...
Problem 11-2A Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Kohler...
Problem 11-2A Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Kohler Corporation reports the following components of stockholders’ equity at December 31, 2018. Common stock—$20 par value, 100,000 shares authorized, 55,000 shares issued and outstanding $ 1,100,000 Paid-in capital in excess of par value, common stock 80,000 Retained earnings 400,000 Total stockholders' equity $ 1,580,000 During 2019, the following transactions affected its stockholders’ equity accounts. Jan. 2 Purchased 5,000 shares of its own stock at...
Exercise 11-21 Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Alexander...
Exercise 11-21 Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Alexander Corporation reports the following components of stockholders' equity at December 31, 2018. Common stock-$25 par value, 60,000 shares authorized, 40,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $1,000,000 80,000 375,000 $1,455,000 During the year, the following transactions affected its stockholders' equity accounts. Jan. Jan. Feb. July Aug. Sept. 2 Purchased 4,000 shares of...
Problem 13-2A Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Kohler...
Problem 13-2A Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Kohler Corporation reports the following components of stockholders’ equity on December 31, 2016: Common stock—$10 par value, 100,000 shares authorized, 40,000 shares issued and outstanding $ 400,000 Paid-in capital in excess of par value, common stock 60,000 Retained earnings 270,000 Total stockholders' equity $ 730,000 In year 2017, the following transactions affected its stockholders’ equity accounts. Jan. 1 Purchased 4,000 shares of its own stock...
Exercise 11-21 Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Alexander...
Exercise 11-21 Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Alexander Corporation reports the following components of stockholders' equity at December 31, 2018. Common stock-$25 par value, 60,000 shares authorized, 40,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $1,000,000 80,000 375,000 $1,455,000 During the year, the following transactions affected its stockholders' equity accounts. Jan. 2 Purchased 4,000 shares of its own stock at $25...
help with finding retained earnings and treasury stock
Ivanhoe Company has two classes of capital stock outstanding: 8%, $20 par preferred and $5 par common. At December 31, 2020, the following accounts were included in stockholders' equity. Preferred Stock, 152,200 shares Common Stock, 2,039,000 shares Paid-in Capital in Excess of Par-Preferred Stock Paid-in Capital in Excess of Par-Common Stock Retained Earnings $3,044,000 10,195,000 202,000 26,684,000 4,587,000 The following transactions affected stockholders' equity during 2021. Jan. 1 32,600 shares of preferred...
Problem 11-2A Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 [The following information applies to the questions displayed below.] Kohler Corporation reports the following components of stockholders' equity on December 31, 2015: Common stock-$10 par value, 100,000 shares authorized, 50,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings $ 500,000 80,000 430,000 Total stockholders' equity $1,010,000 In year 2016, the following transactions affected its stockholders' equity accounts. Jan....
Question 10 The sale of treasury stock cannot result in an increase in Retained Earnings, the crediting of Paid-in Capital, Treasury Stock. the debiting of Paid-in Capital, Treasury Stock. an increase in total stockholders' equity.
Exercise 11-21 Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Alexander Corporation reports the following components of stockholders' equity at December 31, 2018. Common stock-$25 par value, 50,000 shares authorized, 33,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 825,000 66,000 350,000 $1,241,000 During the year, the following transactions affected its stockholders' equity accounts. Jan. 2 Purchased 3,300 shares of its own stock at...
Exercise 11-21 Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Alexander Corporation reports the following components of stockholders' equity at December 31, 2018. Common stock-$25 par value, 50,000 shares authorized, 33,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings $ 825,000 66,000 350,000 $1,241,000 Total stockholders' equity During the year, the following transactions affected its stockholders' equity accounts. 2 Purchased 3,300 shares of its own stock at $25...
Check my wo Exercise 11-18 Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Alexander Corporation reports the following components of stockholders' equity on December 31, 2016 points Common stock-$25 par value, 60,000 shares authorized, 36,000 shares issued and outstanding Paid in capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 900,000 22. 361,000 $1.333.000 eBook In year 2017, the following transactions affected its stockholders' equity accounts Jan. 2 Purchased 3,000...
Exercise 11-21 Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Alexander Corporation reports the following components of stockholders' equity at December 31, 2018. Common stock-$25 par value, 60,000 shares authorized, 40,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $1,000,000 80,000 375,000 $1,455,000 During the year, the following transactions affected its stockholders' equity accounts. Jan. Jan. Feb. July Aug. Sept. 2 Purchased 4,000 shares of...
Exercise 11-21 Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Alexander Corporation reports the following components of stockholders' equity at December 31, 2018. Common stock-$25 par value, 60,000 shares authorized, 40,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $1,000,000 80,000 375,000 $1,455,000 During the year, the following transactions affected its stockholders' equity accounts. Jan. 2 Purchased 4,000 shares of its own stock at $25...
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