Exam 17: Accounting for Stockholders Equity

On January 1,2013,Moulin Company issued 1,200 shares of $60 par callable preferred shares for $180,000.According to the preferred share agreement,Moulin can call these preferred shares on January 1,2015,for $150 per share.On January 1,2015,Moulin calls the shares. a.What is the journal entry to record the issuance of the preferred shares? b.What is the journal entry when Moulin calls the preferred shares?

Fitzgerald Corporation has 55,000 shares authorized,39,000 issued,and 8,000 shares of treasury stock.________ shares are outstanding,and ________ shares are unissued.

Stinson Corporation has 7% participating preferred shares.In 2015 the company pays common shareholders dividends that are 9% of common par value.What,if any,additional dividend will preferred shareholders receive?

On January 1,2014,TNT,Inc.issued 1,500 shares of $50 par value,convertible preferred shares for $150,000.Each preferred share is convertible into one share of $1 par common stock.What is the necessary journal entry to record this transaction?

Pollyanna & Partners reacquired 20,000 shares of its common stock for $10 per share.What is the journal entry needed to record this transaction?

Monet's Minions,Inc.reacquired 10,000 shares of its common stock for $9 per share on August 1.On October 31 they sold 4,000 shares for $6 per share.Assuming a zero balance in the Additional Paid-in Capital From Treasury Stock Transactions account,what is the necessary journal entry for the October transaction?

TLR Productions' net income is $8,765,the market value is $98,765,and the book value of stockholders' equity is $54,321.TLR's P/E Ratio is ________ and the P/B Ratio is ________.

IFRS requires a company to disclose information that enables users to assess its objectives,policies,and processes for managing capital.

Woods,Inc.issues common stock in exchange for legal services received.The common stock has a fair value of $3,000 and a par value of $500.What is the journal entry required to record this transaction?

Bach Company has issued both common and preferred stock.The preferred stock is convertible into common stock.The following information is provided for Bach Company Stockholders' equity: What is the necessary journal entry if 5,000 shares of preferred are converted under each independent scenario: a.Preferred shares are convertible into common stock on a share-for-share basis. b.Each share of convertible stock is convertible into 1.5 shares of common stock.

When treasury stock is sold above or below cost-why isn't this reported on the income statement as a gain or loss?

Convertible preferred shares are often accounted for as a liability under both GAAP and IFRS.

Explain the benefit to reporting other comprehensive income separately from net income.

The Magic Flute Company provides the following information from the Stockholders' Equity section of the balance sheet: Magic Flute had the following transactions related to treasury shares: Prepare the necessary journal entries to record all treasury stock transactions.