Part XIII: Account for the issuance of stock A company neither _____________________________ nor _________________________ when it...
Part XIII: Account for the issuance of stock
A company neither _____________________________ nor _________________________ when it sells its stock to, or buys its stock from, its own stockholders.
Accounting for no-par stock with a stated value is identical to accounting for par-value stock. True or false?
When a corporation issues stock in exchange for assets other than cash, what value are the assets received recorded at?
Current market value
Cost
Par value
Stated value
Part XIV: Explain how treasury stock affects a company
A company’s own stock that it has issued and later reacquired is called _________________.
Treasury stock is recorded at its par value. True or false?
Part XV: Account for retained earnings, dividends, and stock splits
Who has the authority to declare a dividend?
Stockholders’
Board of directors
Management
The SEC
What is the only item that increases retained earnings?
Dividends
Net income
Expenses
Common stock
When a company has issued both preferred and common stock, the _____________ stockholders receive their dividends first. The ______________ stockholders receive dividends only if the total dividend is large enough to pay the ________________ shareholders first.
Homework Answers
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Part XIII: Account for the issuance of stock
A company neither _____________________________ nor
_________________________ when it...
Exercise 11-4 Stock issuance for noncash assets LO P1 Sudoku Company issues 34,000 shares of $6...
Exercise 11-4 Stock issuance for noncash assets LO P1 Sudoku Company issues 34,000 shares of $6 par value common stock in exchange for land and a building. The land is valued at $234,000 and the building at $379,000. Prepare the journal entry to record issuance of the stock in exchange for the land and building View transaction list Journal entry worksheet < 1 Record the issue of 34,000 shares of $6 par value common stock in exchange for land valued...
Correction to retained earnings for an error made in a previous accounting period Credited when dividends...
Correction to retained earnings for an error made in a previous accounting period Credited when dividends are declared, but will be paid at a later date Basic ownership of corporation Authorized stock 1. Receives dividends before 5 common stock Issued stock 2 Distribution of earnings 6 Outstanding stock 3. Common stock The price at which the stock is bought and sold 4. Preferred stock 5 Amounts received from investors in exchange for stock Dividend 6 The amount of net income...
Which of the following is not a part of the dividends process? Dividends are declared by...
Which of the following is not a part of the dividends process? Dividends are declared by board of directors Dividends are recorded as a liability to the stockholders Dividends are determined based on total stockholder’s equity Dividends are distributed based on shares of stock Stock splits will not: Affect total stockholder’s equity Increase the number of outstanding shares Reduce the par value of stock Increase the number of shares of stock on which dividends will be paid How are stock...
On December 31, 2021, Oriole Company had 1,355,000 shares of $5 par common stock issued and...
On December 31, 2021, Oriole Company had 1,355,000 shares of $5
par common stock issued and outstanding. At December 31, 2021,
stockholders’ equity had the amounts listed here. Transactions
during 2022 and other information related to stockholders’ equity
accounts were as follows.
Common Stock
$6,775,000
Additional Paid-in Capital
1,785,000
Retained Earnings
1,185,000
On January 10, issued at $108 per
share 120,000 shares of $103 par value, 7% cumulative preferred
stock.
On February 8, reacquired 17,200
shares of its common stock...
Vaughn Company reported the following amounts in the stockholders' equity section of its December 31, 2019,...
Vaughn Company reported the following amounts in the stockholders' equity section of its December 31, 2019, balance sheet. Preferred stock, 11%, $100 par (10,000 shares authorized, 2,000 shares issued) $200,000 Common stock, $5 par (92,500 shares authorized, 18,500 shares issued) 92,500 Additional paid-in capital 120,000 Retained earnings 413,000 Total $825,500 During 2020, Vaughn took part in the following transactions concerning stockholders' equity. 1. Paid the annual 2019 $11 per share dividend on preferred stock and a $2 per share dividend...
Vaughn Company reported the following amounts in the stockholders' equity section of its December 31, 2019,...
Vaughn Company reported the following amounts in the stockholders' equity section of its December 31, 2019, balance sheet. Preferred stock, 11%, $100 par (10,000 shares authorized, 2,000 shares issued) $200,000 Common stock, $5 par (92,500 shares authorized, 18,500 shares issued) 92,500 Additional paid-in capital 120,000 Retained earnings 413,000 Total $825,500 During 2020, Vaughn took part in the following transactions concerning stockholders' equity. 1. Paid the annual 2019 $11 per share dividend on preferred stock and a $2 per share dividend...
Exercise 11-5 Stock dividends and splits LO P2 On June 30, 2017, Sharper Corporation's common stock...
Exercise 11-5 Stock dividends and splits LO P2 On June 30, 2017, Sharper Corporation's common stock is priced at $29.50 per share before any stock dividend or split, and the stockholders' equity section of its balance sheet appears as follows. Common stock-$6 par value, 60,000 shares authorized 24,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 144,000 100,000 244,000 $ 488.000 1. Assume that the company declares and immediately...
Problem 11-03A (Part Level Submission) On December 31, 2021, Blossom Company had 1,250,000 shares of $5...
Problem 11-03A (Part Level Submission) On December 31, 2021, Blossom Company had 1,250,000 shares of $5 par common stock issued and outstanding. At December 31, 2021, stockholders' equity had the amounts listed here. Common Stock Additional Paid-in Capital Retained Earnings $6,250,000 1,710,000 1,100,000 Transactions during 2022 and other information related to stockholders' equity accounts were as follows. 1. On January 10, issued at $105 per share 110,000 shares of $100 par value, 7% cumulative preferred stock. 2. On February 8,...
1. BonitaCorp. issues 2800 shares of $10 par value common stock at $15 per share. When...
1. BonitaCorp. issues 2800 shares of $10 par value common stock
at $15 per share. When the transaction is recorded, credits are
made to
Common Stock $28000 and Retained Earnings $14000.
Common Stock $28000 and Paid-in Capital in Excess of Par
$14000.
2. VaughnCompany is authorized to issue 9000 shares of 7%, $100
par value preferred stock and 532000 shares of no-par common stock
with a stated value of $1 per share. If Vaughn issues 4500 shares
of preferred stock...
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...
Exercise 11-4 Stock issuance for noncash assets LO P1 Sudoku Company issues 34,000 shares of $6 par value common stock in exchange for land and a building. The land is valued at $234,000 and the building at $379,000. Prepare the journal entry to record issuance of the stock in exchange for the land and building View transaction list Journal entry worksheet < 1 Record the issue of 34,000 shares of $6 par value common stock in exchange for land valued...
Correction to retained earnings for an error made in a previous accounting period Credited when dividends are declared, but will be paid at a later date Basic ownership of corporation Authorized stock 1. Receives dividends before 5 common stock Issued stock 2 Distribution of earnings 6 Outstanding stock 3. Common stock The price at which the stock is bought and sold 4. Preferred stock 5 Amounts received from investors in exchange for stock Dividend 6 The amount of net income...
On December 31, 2021, Oriole Company had 1,355,000 shares of $5
par common stock issued and outstanding. At December 31, 2021,
stockholders’ equity had the amounts listed here. Transactions
during 2022 and other information related to stockholders’ equity
accounts were as follows.
Common Stock
$6,775,000
Additional Paid-in Capital
1,785,000
Retained Earnings
1,185,000
On January 10, issued at $108 per
share 120,000 shares of $103 par value, 7% cumulative preferred
stock.
On February 8, reacquired 17,200
shares of its common stock...
Vaughn Company reported the following amounts in the stockholders' equity section of its December 31, 2019, balance sheet. Preferred stock, 11%, $100 par (10,000 shares authorized, 2,000 shares issued) $200,000 Common stock, $5 par (92,500 shares authorized, 18,500 shares issued) 92,500 Additional paid-in capital 120,000 Retained earnings 413,000 Total $825,500 During 2020, Vaughn took part in the following transactions concerning stockholders' equity. 1. Paid the annual 2019 $11 per share dividend on preferred stock and a $2 per share dividend...
Vaughn Company reported the following amounts in the stockholders' equity section of its December 31, 2019, balance sheet. Preferred stock, 11%, $100 par (10,000 shares authorized, 2,000 shares issued) $200,000 Common stock, $5 par (92,500 shares authorized, 18,500 shares issued) 92,500 Additional paid-in capital 120,000 Retained earnings 413,000 Total $825,500 During 2020, Vaughn took part in the following transactions concerning stockholders' equity. 1. Paid the annual 2019 $11 per share dividend on preferred stock and a $2 per share dividend...
Exercise 11-5 Stock dividends and splits LO P2 On June 30, 2017, Sharper Corporation's common stock is priced at $29.50 per share before any stock dividend or split, and the stockholders' equity section of its balance sheet appears as follows. Common stock-$6 par value, 60,000 shares authorized 24,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 144,000 100,000 244,000 $ 488.000 1. Assume that the company declares and immediately...
Problem 11-03A (Part Level Submission) On December 31, 2021, Blossom Company had 1,250,000 shares of $5 par common stock issued and outstanding. At December 31, 2021, stockholders' equity had the amounts listed here. Common Stock Additional Paid-in Capital Retained Earnings $6,250,000 1,710,000 1,100,000 Transactions during 2022 and other information related to stockholders' equity accounts were as follows. 1. On January 10, issued at $105 per share 110,000 shares of $100 par value, 7% cumulative preferred stock. 2. On February 8,...
1. BonitaCorp. issues 2800 shares of $10 par value common stock
at $15 per share. When the transaction is recorded, credits are
made to
Common Stock $28000 and Retained Earnings $14000.
Common Stock $28000 and Paid-in Capital in Excess of Par
$14000.
2. VaughnCompany is authorized to issue 9000 shares of 7%, $100
par value preferred stock and 532000 shares of no-par common stock
with a stated value of $1 per share. If Vaughn issues 4500 shares
of preferred stock...
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