Exam 3: Equities

Golf Is for Nerds Inc.sells 20,000 no-par value common shares for $8.00 each on a subscription basis.Terms of the sale require the purchaser to pay $3.00 per share when the contract is signed and the balance in three months' time. Required: Prepare the journal entries at (a)the date of signing the contract; (b)the date that the remaining payment is made; (c)the date the shares are transferred.

Which of the following statements is correct?

Explain what a "property dividend" is and why it is not common.Under what circumstances would a property dividend be advisable?

Key Corp has a October 31 year-end.On October 2,2017,the board of directors declared a cash dividend of $1.50 per common share,payable on November 24,2017.The date of record for this dividend is November 17,and the ex-dividend date is November 15,2017.Additional information relating to the shares follows: Required: a.Determine the dollar amount of dividends to be paid as a result of the dividend declaration on October 2,2017. b.Record all the journal entries related to this dividend in 2017.

Assume that a company issued 10,000 shares for $30 and a par value of $1/share.What entry would be required to record the repurchase and cancellation of 1,000 shares at $28/share?

What is the economic significance of "par value" for accounting purposes?

Which statement about a "treasury shares" is correct?

Which statement about cash dividends is correct?

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.

What are three potential outcomes for defaults on share subscriptions?

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

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

What does "priority" mean?

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

Here is an extract of a trial balance for Zoe and Zia Inc.Indicate which accounts would be under the "contributed capital" section of the balance sheet.

Which statement about contributed surplus is correct?

IAS 1,Presentation of Financial Statements,stipulates that a complete set of financial statements includes a statement of changes in equity for the period.The statement of changes in equity provides information about the changes that took place during the period in all equity accounts.List the four equity accounts.

Which statement about a "reverse stock split" is correct?

What kind of transaction is "appropriated reserves"?

What is the "ex-dividend" date for the Toronto Stock Exchange?