Answered: 12. When par value common stock is…

12. When par value common stock is issued at a premium, the journal entry shows a debit to both common stock, par value and paid-in capital in excess of par true false

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 9GI: What amount of the proceeds from the issuance of no-par, no-stated-value stock is recorded in the...

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Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

12. When par value common stock is issued at a premium, the journal entry shows a debit to both common stock, par value and paid-in capital in excess of par

true

false

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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Which of the following are not part of common equity? a. preferred stock c. retained earnings b. common stock d. treasury stock
The entry to record the issuance of common stock at a price above its par value includes a A) an increase to cash. B) an increase to a liability account for the difference between the price paid by the stockholders and the par value of stock. C) an increase to additional paid-in capital: common stock D) a decrease to common stock
The entry to record common stock issued at its par value includes a: A. credit to Cash B. debit to Retained Earnings C. credit to the Common Stock account D. debit to Paid-in Capital in Excess of Par Value-Common
If common stock is issued at a price above par value, the transaction would be recorded as a. debit Common Stock, debit Additional Paid-In Capital, and credit Cash b. debit Cash, debit Common Stock, and credit Additional Paid-In Capital c. debit Additional Paid-In Capital, credit Common Stock, and credit Cash. d. debit Cash, credit Common Stock, and credit Additional Paid-In Capital
hen treasury stock is sold for less than its cost, the entry should include a debit toa. Gain on Sale of Treasury Stock.b. Loss on Sale of Treasury Stock.c. Retained Earnings.d. Paid-in Capital in Excess of Par
Which of the following decreases total equity? A. A stock split B. Recording Revenue C. The purchase of Treasury Stock D. Issuance of Convertible preferred stock
Which of the following statements is false? a. the common stock account has a credit balance. b. the additional paid-in capital account has a credit balance. c. common stock may be issued for more than par value. d. the par value of common stock represents the stock's market value.
What does the additional paid-in capital account represent?a) The difference between the par and the stated value of common stock.b) The price changes that result for stock trading subsequent to its original issue.c) The market price of all common stock issued.d) The amount by which the original sales price of stock exceeds the par value.
When a stock dividend of less than 20−25% is declared and the market value exceeds the par or stated value of the shares, an amount equal to the market value of the shares to be distributed should be charged (debited) to which of the following accounts? Group of answer choices Stock Dividends Stock Dividends Distributable Paid-In Capital in Excess of Par Capital Stock
A journal entry for the sale of $5-par common stock for $15 per share would include a debit to Cash. a debit to Common Stock. a debit to Treasury Stock. a debit to Paid-In Capital in Excess of Par - Common Stock.
If stock is issued above par, what other equity account can be credited? Choices: common stock paid in capital cash retained earinings
At what payout percentage is a stock dividend typically considered a stock split, in accordance with the recommendation of the Financial Accounting Standards Board? a. 15% b. 33% c. 25% d. 10%