INTERMEDIATE ACCOUNTING
1st Edition
ISBN: 9781264920532
Author: SPICELAND
Publisher: MCG
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Chapter 18, Problem 18.22Q
What is a reverse stock split? What would be the effect of a reverse stock split on one million $1 par shares? On the accounting records?
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Chapter 18 Solutions
INTERMEDIATE ACCOUNTING
Ch. 18 - Identify and briefly describe the two primary...Ch. 18 - Prob. 18.2QCh. 18 - Prob. 18.3QCh. 18 - Prob. 18.4QCh. 18 - Prob. 18.5QCh. 18 - Prob. 18.6QCh. 18 - Prob. 18.7QCh. 18 - What is meant by a shareholders preemptive right?Ch. 18 - Terminology varies in the way companies...Ch. 18 - Most preferred shares are cumulative. Explain what...
Ch. 18 - The par value of shares historically indicated the...Ch. 18 - Prob. 18.12QCh. 18 - How do we report components of comprehensive...Ch. 18 - The balance sheet reports the balances of...Ch. 18 - At times, companies issue their shares for...Ch. 18 - Prob. 18.16QCh. 18 - The costs of legal, promotional, and accounting...Ch. 18 - When a corporation acquires its own shares, those...Ch. 18 - Discuss the conceptual basis for accounting for a...Ch. 18 - The prescribed accounting treatment for stock...Ch. 18 - Brandon Components declares a 2-for-1 stock split....Ch. 18 - What is a reverse stock split? What would be the...Ch. 18 - Suppose you own 80 shares of Facebook common stock...Ch. 18 - Prob. 18.24QCh. 18 - Comprehensive income LO181 Schaeffer Corporation...Ch. 18 - Stock issued LO184 Penne Pharmaceuticals sold 8...Ch. 18 - Prob. 18.3BECh. 18 - Prob. 18.4BECh. 18 - Prob. 18.5BECh. 18 - Retirement of shares LO185 Agee Storage issued 35...Ch. 18 - Treasury stock LO185 The Jennings Group...Ch. 18 - Prob. 18.8BECh. 18 - Prob. 18.9BECh. 18 - Property dividend LO187 Adams Moving and Storage,...Ch. 18 - Stock dividend LO188 On June 13, the board of...Ch. 18 - Prob. 18.14BECh. 18 - Stock split LO188 Refer to the situation...Ch. 18 - Prob. 18.16BECh. 18 - Prob. 18.2ECh. 18 - Earnings or OCI? LO182 Indicate by letter whether...Ch. 18 - Stock issued for cash; Wright Medical Group LO184...Ch. 18 - Issuance of shares; noncash consideration LO184...Ch. 18 - Prob. 18.6ECh. 18 - Share issue costs; issuance LO184 ICOT Industries...Ch. 18 - Prob. 18.14ECh. 18 - Prob. 18.16ECh. 18 - Prob. 18.20ECh. 18 - Prob. 18.22ECh. 18 - Prob. 18.25ECh. 18 - Various stock transactions; correction of journal...Ch. 18 - Prob. 18.1DMPCh. 18 - Prob. 18.6DMPCh. 18 - Prob. 18.8DMP
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- What is the difference between a stock dividend and a stock split? As a stockholder, would you prefer to see your company declare a 100% stock dividend or a 2-for-1 split? Assume that either action is feasible.arrow_forwardWhat is the effect on the accounting equation when a stock dividend is declared? What is the effect on the accounting equation when a stock dividend is distributed?arrow_forward1. What is the number of ORDINARY shares outstanding? 2. What is the number of PREFERENCE shares outstanding? 3. How much is the Retained earnings, BEGINNING, unrestricted?arrow_forward
- Which of the following balance sheet accounts will be affected by a stock dividend but not by a stock split? A. Common stock B. Dividends-in-arrears C. Cash D. Retained earningsarrow_forwardWhat is a stock split? How does a stock split affect the market value of a share of stock? What is a stock spin-off? In very general terms, explain how a stock spin-off works.arrow_forwardA) What will be the number of shares outstanding after the split? B) If the common stock had a market price of $210 per share before the stock split, what would be an approximate market price per share after the split?arrow_forward
- What are stock dividends and stock splits?arrow_forwardWhat is treasury stock? Why would a company repurchase its own stock? How might they dispose of the treasury stock?arrow_forwardWhich of the following decreases total equity? A. A stock split B. Recording Revenue C. The purchase of Treasury Stock D. Issuance of Convertible preferred stockarrow_forward
- Instructions: Do not use comma and peso sign on your answers. Please note that all answers are in whole number, no decimal places. Below is the Stockholders' Equity data of Good Place Company: Stockholders Equity Share Capital Paid-in Capital 8% Preference Shares- P200 par, 10,000 shares authorized, issued and outstanding 1,600,000 Ordinary Shares- P50 par, 30,000 shares authorized and issued and outstanding 1,250,000 Subscribed preference shares, 1,000 shares Additional Paid-in Capital Share Premium, 8% Preference Shares Share Premium, Ordinary Shares Total Paid - in Capital 220,000 1,470,000 240,000 365,000 3,435,000 Less: Treasury Stock-8% Preferred Shares, 1,000 shares, at cost Total Share Capital 240,000 Retained Earnings 880,000 Total Stockholders' Equity 4,075,000arrow_forwardWhen computing diluted earnings per share, which of the following will not be considered in the calculation? O Dividends paid on common stock. O The weighted average common shares. O The effect of stock splits. O The number of convertible bondsarrow_forwardStock splits and stock dividends may be used by a corporation to change the number of shares of its stock outstanding. a. What is meant by a stock split effected in the form of a dividend? b. From an accounting viewpoint, explain how the stock split effected in the form of a dividend differs from an ordinary stock dividend. c. How should a stock dividend that has been declared but not yet issued be classified in a balance sheet? Why?arrow_forward
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