19. 19. Share issue costs refer to the costs of obtaining the legal, promotional, and accounting...
19.
19. Share issue costs refer to the costs of obtaining the legal, promotional, and accounting services necessary to effect the sale of shares. The costs reduce the net cash proceeds from selling the shares and thus paid-in capital—excess of par, and are:
Multiple Choice
Not recorded separately.
Recorded as an asset.
Amortized over time.
Recorded as a liability.
20 Corporations are formed in accordance with:
Multiple Choice
The Model Business Corporation Act.
The laws of individual states.
Federal statutes.
Federal trade commission regulations.
21. A simple capital structure might include:
Multiple Choice
Nonconvertible preferred stock.
Stock purchase warrants.
Convertible bonds.
Stock rights.
24. When treasury shares are resold at a price below cost:
Multiple Choice
A loss is reported on the income statement
Paid-in capital and/or retained earnings is reduced.
Paid-in capital and/or retained earnings is increased.
Retained earnings is always reduced.
29. Two of the three primary account classifications within shareholders' equity are:
Multiple Choice
Preferred stock and retained earnings.
Paid-in capital and retained earnings.
Preferred and common stock.
The par of common stock and retained earnings.
30. Under IFRS, components of other comprehensive income:
Multiple Choice
Can be reported as part of a single statement of comprehensive income.
Can be reported as part of a statement of shareholders' equity.
Must be reported in a separate statement of comprehensive income.
Are not permitted to be reported.
33. When treasury stock is purchased for an amount greater than its par, what is the effect on total shareholders' equity?
Multiple Choice
Increase.
Decrease.
No effect.
Cannot tell from the given information.
36. When stock is issued in exchange for property, the best evidence of fair value might be any of the following except:
Multiple Choice
The price of the stock quoted on the stock exchange.
The appraised value of the property received.
The average book value of outstanding stock.
The selling price of the stock in a recent transaction.
37. Under IFRS, a deferred tax asset for stock options:
Multiple Choice
Isn't created if the award is "in the money;" that is, it has intrinsic value.
Is the portion of the options' intrinsic value earned to date times the tax rate.
Is the tax rate times the amount of compensation.
Is created for the cumulative amount of the fair value of the options the company has recorded for compensation expense.
40. Details of each class of stock must be reported:
Multiple Choice
On the face of the balance sheet and in disclosure notes.
On the face of the balance sheet or in disclosure notes.
In disclosure notes only.
On the face of the balance sheet only.
Homework Answers
19. Not recorded separately.
20. Corporations are formed in accordance with: The laws of individual states
21. A simple capital structure might include: Nonconvertible preferred stock
24. When treasury shares are resold at a price below cost: Paid-in capital and/or retained earnings is reduced
29. Two of the three primary account classifications within shareholders' equity are: Paid-in capital and retained earnings
33. When treasury stock is purchased for an amount greater than its par, what is the effect on total shareholders' equity?
Answer: It will Decrease
40. Details of each class of stock must be reported: On the face of the balance sheet or in disclosure notes
Add Answer to:
19.
19. Share issue costs refer to the costs of obtaining the legal,
promotional, and accounting...
Font Paragraph Tultiple Choice Questions, Extra Credit 60 points) 51. The net assets of a corporation...
Font Paragraph Tultiple Choice Questions, Extra Credit 60 points) 51. The net assets of a corporation equal to: A) Contributed capital C) Shareholders' equity. B) D) Retained earning None of the abos 52. Characteristics of the corporate form that have led to the growth of this form of bu the following except A) Ease of raising capital B) Low governme C) Limited liability D) Ease of ownershi 53. Retained earnings represent A) Earned capital. C) Assets. B) D) Cash Net...
Under the fair value method, if an executive does not exercise a stock option and it...
Under the fair value method, if an executive does not exercise a stock option and it is allowed to lapse, the account - Paid-in Capital Share Options - is debited. What account is credited? Compensation Expense Deferred Compensation Additional Paid-In Capital from Expired Share Options Gain from Expired Share Options Under the par value method of accounting for treasury stock, the treasury stock is reported on the balance sheet as a deduction from contributed capital capital stock the sum of...
Ace Industries has the following shareholders’ equity accounts at December 31, 2018: Preferred stock, $100 par...
Ace Industries has the following shareholders’ equity accounts at December 31, 2018: Preferred stock, $100 par value, 10% dividend, 50,000 shares issued and outstanding $ 5,000,000 Common stock, $6 par value, 1 million shares issued and outstanding 6,000,000 Paid-in capital in excess of par 119,000,000 Unrestricted retained earnings 7,500,000 Retained earnings restricted for plant expansion 2,500,000 On December 15, 2018 Ace Industries repurchased 200,000 shares of its common stock for $10 per share. Based on its shareholders’ equity accounts, what...
Udall Corporation's post-closing trial balance at December 31, 2019, was as follows: Debit Credit Accounts Payable...
Udall Corporation's post-closing trial balance at December 31, 2019, was as follows: Debit Credit Accounts Payable $290,000 Accounts Receivable $550,000 Accumulated Depreciation-Building and Equipment 200,000 Additional Paid-in Capital-on Common Stock 1,560,000 Additional Paid-in Capital from Treasury Stock 250,000 Allowance for Doubtful Accounts 30,000 Bonds Payable 400,000 Building and Equipment 1,100,000 Cash 220,000 Common Stock ($1 par value) 150,000 Dividends Payable on Preferred Stock 4,000 Inventories 620,000 Land 380,000 Available-for-Sale Investments 285,000 Trading Investments 215,000 Preferred Stock ($50 par value) 500,000...
Average common shares outstanding. Basic earnings per share. 10,462 282 10,527 818 e a $ 0.36...
Average common shares outstanding. Basic earnings per share. 10,462 282 10,527 818 e a $ 0.36 $ 0.94 1. Distinguishing Between Common Stock and Additional Paid-in Capital Following is the 2016 stockholders' equity section from the Cisco Systems Inc. balance sheet. Shareholders' Equity (in millions, except per value) July 2016 Preferred stock, no par value: 5 shares authorized, none issued and outstanding .. Common stock and additional paid-in capital, $0.001 par value: 20,000 shares authorized; 5,029 and 5,085 shares issued...
Retained Earnings= 34,500 7) Complete the following stockholder's equity section of the balance sheet for Sunset...
Retained Earnings= 34,500
7) Complete the following stockholder's equity section of the balance sheet for Sunset Sailboat Company. Information: Use the ending retained earnings balance calculated above. Common stock par value, $5 / share, 200,000 shares. Preferred stock par value, $100 / share, 10,000 shares. Paid-in capital in excess of par - Common Stock, $250,900; Paid-in Capital in Excess of Par - Preferred Stock, $4,750. Comprehensive Income, $45,000, unrecognized trading gain. Treasury Stock ($50,000). Balance Sheet Stockholder's Equity (only) Contributed...
1- The following data has been collected about Keller Company's stockholders' equity accounts: Common stock $10...
1- The following data has been collected about Keller Company's stockholders' equity accounts: Common stock $10 par value 20,000 shares authorized and 10,000 shares issued, 9,000 shares outstanding $100,000 Paid-in capital in excess of par value, common stock 50,000 Retained earnings 25,000 Treasury stock 11,500 Assuming the treasury shares were all purchased at the same price, the cost per share of the treasury stock is: Multiple Choice $1.15. $1.28. $11.50. $10.50. $10.00. 2- Comfort Mattresses, Inc. sold 26,000 shares of...
ACC 3020 FA 2019 Class exercise: Ch 18-19 Ch. 18 Bentley Corporation's corporate charter authorized the...
ACC 3020 FA 2019 Class exercise: Ch 18-19 Ch. 18 Bentley Corporation's corporate charter authorized the issuance of 10,000,000 shares of $1 par value common stock and 1,000,000 shares of 5%, $25 par value, cumulative, nonparticipating preferred stock. At December 31, 2018, the shareholders' equity section of Bentley's balance sheet included the following: All numbers in millions, except numbers of shares and per share amounts Preferred stock: 5%, $25 par/share; cumulative, nonparticipating; 1,000,000 shares authorized, issued, and outstanding $ 25...
The retained earnings statement A. will, in some cases, fail to reconcile the beginning and ending...
The retained earnings statement A. will, in some cases, fail to reconcile the beginning and ending retained earnings balances. B. is the owners' equity statement for a corporation. C. will not reflect net losses. D. will show an addition to the beginning retained earnings balance for an understatement of net income in a prior year. Vega Corporation's December 31, 2013 balance sheet showed the following: 8% preferred stock, $20 par value, cumulative, 15,000 shares authorized; 10,000 shares issued $200,000 Common...
Please show calculations! Analyzing and Computing Average Issue Price and Treasury Stock Cost Assume this is...
Please show calculations!
Analyzing and Computing Average Issue Price and Treasury Stock Cost Assume this is the stockholders' equity section from the Campbell Soup Company balance sheet. Shareholders' Equity (millions, except per share amounts) August 3, 2008 July 29, 2007 Preferred stock: authorized 40 shares; non issued $- Capital stock. $0.0375 par value: authorized 560 shares; issued 542 shares 20 20 Additional paid-in capital 337 Earnings retained in the business 7,866 7,072 Capital stock in treasury, 186 shares in 2008...
Font Paragraph Tultiple Choice Questions, Extra Credit 60 points) 51. The net assets of a corporation equal to: A) Contributed capital C) Shareholders' equity. B) D) Retained earning None of the abos 52. Characteristics of the corporate form that have led to the growth of this form of bu the following except A) Ease of raising capital B) Low governme C) Limited liability D) Ease of ownershi 53. Retained earnings represent A) Earned capital. C) Assets. B) D) Cash Net...
Under the fair value method, if an executive does not exercise a stock option and it is allowed to lapse, the account - Paid-in Capital Share Options - is debited. What account is credited? Compensation Expense Deferred Compensation Additional Paid-In Capital from Expired Share Options Gain from Expired Share Options Under the par value method of accounting for treasury stock, the treasury stock is reported on the balance sheet as a deduction from contributed capital capital stock the sum of...
Udall Corporation's post-closing trial balance at December 31, 2019, was as follows: Debit Credit Accounts Payable $290,000 Accounts Receivable $550,000 Accumulated Depreciation-Building and Equipment 200,000 Additional Paid-in Capital-on Common Stock 1,560,000 Additional Paid-in Capital from Treasury Stock 250,000 Allowance for Doubtful Accounts 30,000 Bonds Payable 400,000 Building and Equipment 1,100,000 Cash 220,000 Common Stock ($1 par value) 150,000 Dividends Payable on Preferred Stock 4,000 Inventories 620,000 Land 380,000 Available-for-Sale Investments 285,000 Trading Investments 215,000 Preferred Stock ($50 par value) 500,000...
Average common shares outstanding. Basic earnings per share. 10,462 282 10,527 818 e a $ 0.36 $ 0.94 1. Distinguishing Between Common Stock and Additional Paid-in Capital Following is the 2016 stockholders' equity section from the Cisco Systems Inc. balance sheet. Shareholders' Equity (in millions, except per value) July 2016 Preferred stock, no par value: 5 shares authorized, none issued and outstanding .. Common stock and additional paid-in capital, $0.001 par value: 20,000 shares authorized; 5,029 and 5,085 shares issued...
Retained Earnings= 34,500
7) Complete the following stockholder's equity section of the balance sheet for Sunset Sailboat Company. Information: Use the ending retained earnings balance calculated above. Common stock par value, $5 / share, 200,000 shares. Preferred stock par value, $100 / share, 10,000 shares. Paid-in capital in excess of par - Common Stock, $250,900; Paid-in Capital in Excess of Par - Preferred Stock, $4,750. Comprehensive Income, $45,000, unrecognized trading gain. Treasury Stock ($50,000). Balance Sheet Stockholder's Equity (only) Contributed...
ACC 3020 FA 2019 Class exercise: Ch 18-19 Ch. 18 Bentley Corporation's corporate charter authorized the issuance of 10,000,000 shares of $1 par value common stock and 1,000,000 shares of 5%, $25 par value, cumulative, nonparticipating preferred stock. At December 31, 2018, the shareholders' equity section of Bentley's balance sheet included the following: All numbers in millions, except numbers of shares and per share amounts Preferred stock: 5%, $25 par/share; cumulative, nonparticipating; 1,000,000 shares authorized, issued, and outstanding $ 25...
Please show calculations!
Analyzing and Computing Average Issue Price and Treasury Stock Cost Assume this is the stockholders' equity section from the Campbell Soup Company balance sheet. Shareholders' Equity (millions, except per share amounts) August 3, 2008 July 29, 2007 Preferred stock: authorized 40 shares; non issued $- Capital stock. $0.0375 par value: authorized 560 shares; issued 542 shares 20 20 Additional paid-in capital 337 Earnings retained in the business 7,866 7,072 Capital stock in treasury, 186 shares in 2008...
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