Exam 13: Equities

Elville Inc.was incorporated under provincial legislation with a December 31 year-end.The company has a single class of shares.As at December 31,2016,it had 900,000 shares issued and outstanding.These shares had a book value of $18,000,000 on the balance sheet. During 2017,Elville repurchased 10% of the issued shares from one of the minority shareholders at a cost of $25 per share.The company held these in treasury and later found a buyer for half of these shares at $30.The other half were sold at $21 to another investor. Required: Record the share transactions using the single-transaction method for treasury stock,which is the preferred accounting method.

If 10,000 shares with par value of $15/share are issued for $20/share,how much will be presented as "contributed capital" for financial statement purposes?

Contrast the different treatment between IFRS and ASPE with respect to property dividends.

What kind of transaction is "appropriated reserves"?

Which is an example of "contributed capital"?

When is a corporation legally obligated (liable)to pay dividends?

If a company issues 2,000 shares for $55 and then repurchases 50 shares at $50 and subsequently purchase another 50 shares at $60 each,how much is in the account "contributed surplus on retirement of shares"?

Summarize the difference between IFRS and ASPE respecting specific recognition and measurement standards for items of equity in the following table:

What does "priority" mean?

Dunst Company had the following shareholders' equity account balances on December 31,2017: During 2018,the following transactions occurred: i.May 1: Dunst resold 1,600 of the treasury shares at $52 per share. ii.Dec.30: The board of directors declared cash dividends of $2 per share. iii.Dec.31: Net income for the year ended December 31,2018 was $150,000. Dunst uses the single transaction method for treasury shares. Required: a.Record the journal entries for the transactions in 2018 and make all the necessary year-end entries relating to shareholders' equity accounts. b.Prepare the presentation of the shareholders' equity section of Dunst's balance sheet as at December 31,2018.

Which statement is correct?