The excess of retirement cost over the original issuance price is * Debited to Share Premium - Treasury Shares Debited to Retained Earnings Debited to Share Capital Both a and b respectively
Q: If Treasury Stock is purchased, the Stockholder's Equity Section of the Balance Sheet will (select…
A: Treasury stock is a previously outstanding stock that the issuing corporation buys back from…
Q: Under the cost method, the journal entry to record the repurchase of a treasury share for more than…
A: Shares mean the small portion of ownership that is issued by the company. When the investor's…
Q: If the combined market value of equity investment at fair value through profit or loss at the end of…
A: If equity investment is designated as fair value through profit or loss, then difference in market…
Q: Cumulative preferred dividends in arrears should be shown in a corporation's balance sheet as: O A…
A: The cumulative preference shareholders have the right to receive any arrears of dividend also.
Q: By default, issuance costs of shares is debited to Share Capital Retained Earnings Issuance Cost…
A: There are 2 methods to deal with the share issue cost. 1. Share issue cost are debited to share…
Q: stockholders equity, paid in capital , retained earnings and net
A:
Q: When a stock dividend is declared and issued: Multiple Choice total stockholders' equity does not…
A: Introduction: Dividends: Dividends are given to shareholders of the company. Dividends are of two…
Q: calculate the: -after-tax cost of debt -the cost of preferred stock -the cost of equity from…
A: A combination of long-term debts and different types of stocks to raise funds for the business…
Q: What is the result of stock dividends? O a. Retained earnings decrease while total paid-in capital…
A: Stock dividend means when a company declares Stock (Common shares) as dividends to its various…
Q: How should the excess of subscription price over the value of ordinary shares subscribed be…
A: Company means the form of business where management is separately from owner and have perpetual…
Q: The date on which we would expect to see the price of a share fall by the value of the dividend is…
A: a. the declaration date - It is the date when the company announces that dividend will be paid on…
Q: The most important factor to consider when determining the dividends to be declared is *…
A: Dividend is a part of Net profit earned by the entity & distributed among the equity…
Q: Which arrangement of the different modes of financing appropriately reflects the related cost of…
A: Highest cost capital modes of fiannacing is cost of equity.
Q: Which of the statements is NOT TRUE about the yield of a stock? a) It is comprised of dividend yield…
A: Capital Gain/Loss: It refers to the change in the value of an investment made by an individual or an…
Q: The amount attributable to every share of ordinary share capital outstanding during the period. a.…
A: The company can raise funds by using different methods. Some of them are, by way of issuing common…
Q: It is calculated, taking into account the outstanding equity shares of the company A. Conversion…
A: Issue of shares is an important source of finance for the business. Several type of shares can be…
Q: When treasury shares are reissued at more than the reacquisition cost, the excess of the reissuance…
A: When treasury shares are reissued excess over of purchase cost we will transfer such difference to…
Q: When a stock dividend is declared and issued: Multiple Choice total stockholders' equity does not…
A: PLEASE GIVE A LIKE, your response matters so , the answer is option 'a' When a stock dividend is…
Q: Question 2 The stockholders' equity will increase as a result of the: buyback of common stock. O…
A: Stockholder's equity increases with the following :- Issue of common stock Increase in net income…
Q: ina
A: Explanation : In simple words, Borrowers who use indirect financing, such as with a financial…
Q: When computing diluted earnings per share (EPS), convertible bonds are: A. ignored. B. assumed…
A: Earning Per Share can be calculated as Diluted or Basic . Basic Earning Per share is calculated by…
Q: Using the data above, calculate the following: • Cost of common equity using retained earnings •…
A: Cost of preference shares refers to the amount paid to the preference shareholders of the company in…
Q: Which of the following is not a long term source of capital? a. Preferred stock b. Common stock c.…
A: Sources of capital can be long-term and short-term. Those sources which have a repayment period of…
Q: When treasury shares are reissued below the reacquisition cost, the difference between the…
A: The treasury stock includes the shares that are bought back by the company from its own shares.
Q: paid in capital includes the following except preferred stock par value common stock par value…
A: Solution:- paid in capital includes the following as follows under:-
Q: What is reflected in the additional paid-in capital account? a. none of the above b. Whichever is…
A: additional paid-in capital account is shown in liabilities section of balance sheet under…
Q: For available-for-sale equity securities, receipt of a cash dividend would be reported as a. a…
A: For available-for-sale equity securities, receipt of a cash dividend would be reported as Dividend…
Q: When non-par value shares are reacquired at a cost greater than their average issue price and…
A: Stock that has no par value is known as no-par value stock. The price that investors are ready to…
Q: When using discounted dividend method to estimate stock price, which of the following should be used…
A: When using discounted dividend method to estimate stock price, used required return of equity as…
Q: The excess of original issuance price over the retirement cost is * O Debited to retained earnings O…
A: Treasury stock: It refers to Shares which are bought back by the company from the open market but…
Q: The most important factor to consider when determining the dividends to be declared is a. the…
A: When a company has more cash than it can use(Profit in hand and no further expansion plan to grow),…
Q: alculation of which if the following metrics require knowledge of the company’s share price? Choose…
A: Dividend yield The dividend yield is the ratio of the current share price of a company and the…
Q: c. How much Resulting APIC is to be charged or debited for the stock issuance cost d. How much…
A: According to IFRS 3 Business Combination, the cost incurred for issuing stock shall not be treated…
Q: Stockholders' equity consists of which of the following? Multiple Choice O O Paid-in (or…
A: Stockholders' equity=Paid in capital+Retained earnings
Q: Undeclared dividends (in arrears) to cumulative preferred stockholders must be filed to. in the…
A: Solution:- As we know, the preferred shares are paid dividend prior to common shares. There is a…
Q: Achieving an increased return on common stock by paying dividends on preferred stock at a rate that…
A:
Q: The share premium and the revaluation reserve are both revenue related, however the retained…
A: The revenue includes the money that a company generates from its day-to-day business operation. The…
Q: Do you add or subtract total retained earnings with paid in capital when accounting stock?
A: 1. Retained Earnings - Retained Earnings is the retained accumulated profit of the company over the…
Q: How is the realised percentage return from investing in a share calculated? A. The cash flows…
A: Realized percentage return is the return which the investors gets over a period after considering al…
Q: d. Estimate the cost of equity raised by issuing new shares using the dividend growth method. e.…
A: The cost of equity: The required return on an equity stock by its equity shareholders is the cost of…
Q: ng, the per-share price, and the debt-to-equity ratio for Focus if it adopts the proposed…
A: Comment- Multiple Questions Asked. Earnings per share- Earnings per share (EPS) is a financial…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 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 treasury stock is purchased for more than the par value of the stock and the cost method is used to account for treasury stock, what account(s) should be debited?Required to answer. Single choice. a. Treasury stock for the par value and retained earnings for the excess of the purchase price over the par value b. Treasury stock for the purchase price c. Treasury stock for the par value and paid-in capital in excess of par for the excess of the purchase price over the par value d. Paid-in capital in excess of par for the purchase priceWhich of the following is not a method that may be used to account for treasury shares?a. Cost methodb. Par value methodc. Retained earnings methodd. Constructive retirement methodC
- What would you expect to happen to an all-equityfirm’s stock price if its management announceda recapitalization under which debt would beissued and used to repurchase common stock?If the combined market value of equity investment at fair value through profit or loss at the end of the year is more than the market value of the same portfolio of trading securities at the beginning of the year, the difference should be accounted for by: a debit to equity investment O reporting an unrealized loss in security investment in the stockholders' equity section of the balance sheet a footnote to the financial statements reporting an unrealized loss in security investments in the income statement O reporting an unrealized gain in security investments in the income statementWhen treasury stock accounted for by the cost method is subsequently sold for more than its purchase price, the excess of the cash proceeds over the carrying value of the treasury stock should be recognized as: a.an increase in retained earnings b.income from continuing operations c.an ordinary gain d.an increase in 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 ParWhen using discounted dividend method to estimate stock price, which of the following should be used as the discount rate? - required return of debt - risk free rate - required return of the equity - WACC - Bank deposit rateTreasury stock should be reported as: a. A Reduction of stockholders equity in the balance sheet b. A Fixed asset in the balance sheet c. A long term investment in the balance sheet d. A Current asset in the balance sheet
- In applying the treasury shares (i.e., cash in/cash out) method to determine the dilutive effect of shares, options and warrants, the proceeds assumed to be received upon exercise of the options and warrants Select one: a. are used to calculate the number of common shares repurchased at the average market price, when calculating diluted earnings per share. b. are added, net of tax, to the numerator of the calculation for diluted earnings per share. c. are disregarded in the calculation of earnings per share if the exercise price of the options and warrants is less than the ending market price of common shares. d. are deducted from the income available to common share holders. e. None of the above.Cost of debt can be approximated by maturity coupon rate inflation rate yield to maturity market risk premium Which one of the followings is least important for dividend decisions Attract institutional investors Stability of future earnings Flotation cost of issuing new equity Maintaining consistency with historic dividend policy A sustainable change in earnings With a right offerings, each shareholder is issued an obligation to buy a specified number of new shares from the firm at a specified price within a specified time, after which the rights expire. True False13. For available-for-sale equity securities, receipt of a cash dividend would be reported as a. a reduction from retained earningsb. an increase in the investments available for sale accountc. a reduction in the investments available for sale accountd. dividend revenue