19 and 20i need answers and urgent thankss 19. What is the effect of share dividends of the same class on the investment account, number ofshares, and the carrying value per share?InvestmentAccountIncreaseNumber ofShareCarrying valueper sharea.IncreaseDecreaseb.IncreaseIncreaseIncreaseDecreaseIncreaseC.No effectIncreased.No effectDecrease20. What is the effect of share split up on the investment account, number of shares held, andthe carrying value per share?InvestmentAccountNo effectNumber ofSharesCarrying valueper shareа.IncreaseDecreaseb.No effectIncreaseIncreaseC.IncreaseIncreaseDecreased.IncreaseIncreaseIncrease

19. The correct option is b. When a share dividend is paid, it is credited to the investment…

Answered: What is the effect of share dividends…

What is the effect of share dividends of the same class on the investment account, number o shares, and the carrying value per share? Inuontmont Dlumhor of Corning volue

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 8MC: When treasury stock is purchased for cash at more than its par value, what is the effect on total...

See similar textbooks

Related questions

Q: Explain the different types of preferred stock dividends and their effect on book value per share.

A: Preferred stock: Preferred stock have a preference to receive dividend than before any common…

Q: When accounting for small share dividend, which of the following will be use in recording such…

A: The share dividend is the dividend provided to the shareholders in the form of shares.

Q: Which of the following does not affect accumulated profits? A. Stock dividend B. Share split C.…

A: The share split is a method of decreasing the par value of the stock by increasing the number of…

Q: Compute the value of a share of Fellows Company stock using the price-earnings multiples method

A: Value of share by Price earnings ratio = P/E ratio * Earnings per share

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: How much is the total share capital? What is the issue price of preferred shares? Per share What is…

A: Step 1 Share capital is the part of total stockholder’s equity.

Q: Discuss why options and warrants may be considered potentially dilutive common shares for the…

Q: Market capitalisation is equal to O a. Number of shares x EPS O b. Number of shares x Book…

A: Market capitalisation means value of the company in the market.

Q: What is the weighted average number of ordinary shares outstanding?

A: Calculation of weighted average number of ordinary shares outstanding: Date Particulars Share…

Q: What is the total Share Holder's Equity

A: Shareholders' equity is the owners' equity which is the owners claim over net assets of the company.…

Q: the total shareholders' equity after the declaration of hare capital dividend a. is greater than…

A: Cash dividends decreases cash and retained earnings. Retained earnings is part of stockholders'…

Q: O Preferred equity is a separate component of WACC. O There is a tax shield on the equity dividends…

A: There is debt used in the capital structure of company debt have advantages of interest tax sheild…

Q: Prepare a tabular summary of the effects of thc alternative actions on the components of cquity,…

A: Stock Dividends: It refers to the payment of dividends by a company to its existing shareholders,…

Q: Mandatorily redeemable preferred stock (preference shares) is reported among liabilities and their…

A: International Financial Reporting Standards:They are commonly known as IFRS. It is a set of…

Q: Shareholders wealth is calculated as Select one: a. Number of shareholders X Current market price b.…

A: Shareholder's wealth is collective wealth created by the company and represented by its market…

Q: inary share capital upon the decl

A: Shares refer to a financial instrument that is issued to raise funds from the market by the company…

Q: Which of the following balance sheet accounts will be affected by a stock dividend but not by a…

A: A stock dividend is a dividend paid to the shareholders that are paid through shares rather than…

Q: How much is the EARNINGS PER SHARE, considering that the preference shares are cumulative and…

A: Earnings Per Share (EPS) Earning per share is an important tools of measuring the strength in the…

Q: EPS is computed by dividing net income by the average number of shares outstanding. True False

A: Earnings per share(EPS) refers to an indicator or a financial ratio that shows how much a company is…

Q: Which of the following would affect the Share Premium - Issuance account in relation to treasury…

A: Treasury stock: Shares which are bought back by the company from the open market but not retired…

Q: Describe what is meant by the weighted-average number of common shares.

A: Weighted average shares outstanding refers to the number of shares of a company calculated after…

Q: Book value per share is computed by dividing the net assets to the total number of shares…

A: Book value per share: It is the financial ratio that represents the minimum value of a company's…

Q: In computing basic earnings per share (EPS), the amount of preference dividends on noncumulative…

A: Income per share (EPS) could be a key activity wont to decide the regular investor's a part of the…

Q: The number of outstanding shares is:

A: Treasury stock represents the repurchase of the own share by the company. It reduces the outstanding…

Q: Book value per common share is computed by: O Multiplying the number of common shares outstanding…

A: Common stock indicates the ownership of the company held by investors called shareholders.

Q: Dividends declared on redeemable preference shares are recognized * O By a debit to retained…

A: Dividend means the amount given to shareholder of the company as profit distribution by…

Q: Explain the Summary of the Effect of Potential Common Shares on Earnings Per Share.

A: The companies which are listed on securities exchange are required to report the Earnings per share…

Q: How will you compute outstanding shares? Does it include share premium and retained earnings?

A: Outstanding shares means common shares of the business as on a particular date. For example, a…

Q: dividend yield on Abercrombie & Fitch stock wa

A: The dividend yield on Abercrombie & Fitch stock is identified from Yield Column I,e column 13

Q: The receipt of dividends from long-term investments in stock in classified as a canh infow from…

A: The cash flow statement keeps the record of cash inflow or outflow from the business under various…

Q: 15. If a company reporting under ASPE decides to use the cost model to account for an investment in…

Q: When it comes to the market value of a company, is it true or not that it equals the number of…

A: Introduction: The market value is the worth of a corporation according to the financial markets. The…

Q: Which of the following is true about share split? * It increases the total number of outstanding…

A: Share split break a share into number if pieces reducing the par value of the share.

Q: The ____________________per share is the amount of income attributable to each share ofcommon…

A: answer: a. earnings

Q: TRUE OR FALSE. iF FALSE explain why A share dividend will cause an increase in total share…

A: The dividend is a payment made by the company to its stockholders.

Q: What does the P/E ratio measure? C . Th e earnings for one common share of stock.

A: Pe ratio = share price/ earning per share The PE ratio is the ratio of a company's share price to…

Q: What us earnings per share? What us its significance to the shareholders? How is it computed if:…

A: Earning per share (EPS) is calculated as a company’s profit divided by number of shares outstanding…

Q: Identify the drawbacks of using dividend growth model as part of valuing shares

A: Dividend growth model: Dividends are presumed to grow at a steady rate in perpetuity in this…

Q: Compute for the following: 1) How many shares were issued for the Preference Share Capital? 2) How…

A: Disclaimer: "Since the question you asked contains multiple sub-parts so we solved the first three…

Q: How would a share split affect the amount of total share capital, total shareholder's equity and…

A: Stock split results in division of outstanding shares. Hence, the total number of shares outstanding…

Q: The market value of Lawrence's shares is $ (F

A: The dividend discount model was developed by Gordon. It is also called as Gordon Growth model.…

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: If a company’s outstanding shares are increased through a stock dividend or a stock split, how would…

A: EPS represents Earnings per share. Formula to calculate EPS = (Net income - Preferred dividend) /…

Q: When computing the basic earnings per share in a structure where there are cumulative preference…

A: Formula to calculate earnings per share is, Net Income attributable to equity share holders/…

Q: Dividends in arrears on preference shares are reported in the financial statements as a (an) a.…

A: dividend are paid by the company to its shareholders.both the shareholder whether it is common stock…

Q: Earnings per share (EPS) should be computed on the basis of A. Voting ordinary shares B. Voting…

A: Earnings per share (EPS) is the that value of share which will get when the net income which is…

Q: Required: Calculate the amount of dividends received by preference and ordinary shareholders,…

A: Ordinary shares: These are the shares issued by a company to an outsider. These shares entitle a…

Q: If the costing of the shares is based on the moving average method, the gain on the sale of the…

A: Under Moving Average Method, The Total Number of shares is divided by the Total cost of the shares…

Question

19 and 20

i need answers and urgent

thankss

19. What is the effect of share dividends of the same class on the investment account, number of
shares, and the carrying value per share?
Investment
Account
Increase
Number of
Share
Carrying value
per share
a.
Increase
Decrease
b.
Increase
Increase
Increase
Decrease
Increase
C.
No effect
Increase
d.
No effect
Decrease
20. What is the effect of share split up on the investment account, number of shares held, and
the carrying value per share?
Investment
Account
No effect
Number of
Shares
Carrying value
per share
а.
Increase
Decrease
b.
No effect
Increase
Increase
C.
Increase
Increase
Decrease
d.
Increase
Increase
Increase

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

13-9 Which of the following is not a type of dilution? Select one: a. dilution of percentage ownership b. dilution of market value c. dilution of book value d. dilution of share price e. dilution of earnings per share
How would a share split affect the amount of total share capital, total shareholder's equity and retained earnings, respectively? a. No effect ;No effect ;No effect b. Increase;Increase;No effect c. No effect;No effect;Increase d. Decrease;Decrease;Decrease
Which one of the following statements is correct concerning both the dollar return and the percentage return on a share investment? a. The dollar return is dependent on the size of the investment while the percentage return is not. b. The dollar return is more accurate than the percentage return because the dollar return includes dividend income while the percentage return does not. c. The dollar return considers the time value of money while the percentage return does not. d. Dollar returns are based on capital gains while percentage returns are based on the total rate of return. Clear my choice
How would a share split affect the amount of total share capital, total shareholder's equity and retained earnings, respectively No effect ;No effect ;No effect Increase;Increase;No effect No effect;No effect;Increase Decrease;Decrease;Decrease
13. 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
Which statement about book value per share (BVPS) is true???A. Market price per share usually approximates BVPS.B. BVPS can be misleading because it is based onhistorical cost.C. Market price per share greater than BVPS is anindication of an overvalued stockD. BVPS is the amount that would be paid to shareholdersif the firm is sold to another firm
Which of the following best describes the possible result of treasury share transactions? a. May decrease but not increase net income. b. May increase net income if the cost method is used. c. May increase but not decrease retained earnings. d. May decrease but not increase retained earnings.
How is the realised percentage return from investing in a share calculated? A. The cash flows received from the share divided by the price paid for the share. B. Dividends received plus the difference between the selling price and the purchase price, divided by the purchase price. C. The price paid for the share divided by the selling price. D. Both (b) and (c)
Why is P/E Multiples Approach better than book value per share when it comes to valuing the stocks of a company?
In the context of choosing a share repurchase over declaring dividends, a share repurchase would *a. Decrease available financing whereas declaring dividends increase available financing.b. Increase earnings per share by decreasing the number of shares outstanding.c. Decrease earnings per share by decreasing dividends payabled. invlove all shareholders.
(14-4) One position expressed in the financial literature is that firms set their dividends as a residual after using income to support new investments. Explain what a residual policy implies (assuming that all distributions are in the form of dividends), illustrating your answer with a table showing how different investment opportunities could lead to different dividend payout ratios.
What is the significance of book value per share? How is it computed if: Only one class of share capital is outstanding Two classes of share capital are outstanding