Exam 18: Shareholders Equity

Use I = Increase,D = Decrease,or N = No effect,to indicate the effect on total shareholders' equity for each of the listed transactions. ____ Declaration of a property dividend. ____ Net income for the year. ____ Purchase of treasury stock at a cost greater than the original issue price. ____ Purchase of treasury stock at a cost less than the original issue price. ____ Issue common stock. ____ Resale of treasury stock.

Treasury shares are most often reported as:

On January 1,2016,Fascom had the following account balances in its shareholders' equity accounts. During 2016,Fascom Inc.had several transactions relating to common stock. Required: Without preparing journal entries,prepare the shareholders' equity section of Fascom's balance sheet as of December 31,2016.Assume net income is $500,000 for 2016.

Fowler Co.'s balance sheet showed the following at December 31,2016: A cash dividend is declared on December 31,2016,and is payable on January 20,2017,to shareholders of record on January 10,2017. Required: (1. )Prepare all appropriate journal entries,assuming a cash dividend in the amount of $1.00 per share. (2. )Prepare all appropriate journal entries,assuming a cash dividend in the amount of $5.00 per share.

R Co.has outstanding 100 million shares,$1 par common stock,selling for $8 per share.After a 1 for 4 reverse stock split:

Details of each class of stock must be reported:

Use the following to answer questions The following partial information is taken from the comparative balance sheet of Levi Corporation: -What was the average price of the additional treasury shares purchased by Levi during 2016?

The balance sheet reports the balances of shareholders' equity accounts.What additional information is provided by the statement of shareholders' equity?

During the current year JET Industries issued 5 million of its $1 par common shares to its underwriters for $25,000,000 less promotional and accounting services of $500,000 to effect the issue. Required: Prepare the journal entry to record the issuance of the shares.

On June 1,2016,Blue Co.distributed to its common stockholders 200,000 outstanding common shares of its investment in Red,Inc. ,an unrelated party.The book value on Blue's books of Red's $1 par common stock was $2 per share.Immediately after the declaration,the market price of Red's stock was $2.50 per share.In its income statement for the year ended June 30,2016,what amount should Blue report as gain before income taxes on disposal of the stock?

The owners of a corporation are its shareholders.If a corporation has only one class of shares,they typically are labeled common shares.Each of the following are ownership rights held by common shareholders,unless specifically withheld by agreement,except:

Which of the following transactions decreases retained earnings?

The declaration and issuance of a stock dividend on shares of common stock:

The balance sheet of Messi Services included the following shareholders' equity section at December 31,2016: On January 5,2017,Holmes purchased 2 million treasury shares for $9 million.Immediately after the purchase of the shares,the balances in the paid-in capital- excess of par and retained earnings accounts are:

When preferred stock is purchased by the issuing corporation at a price below the original issue price and the stock is retired,the transaction:

Share issue costs refer to the costs of obtaining the legal,promotional,and accounting services necessary to effect the sale of shares.The costs reduce the net cash proceeds from selling the shares and thus paid-in capital-excess of par,and are:

Use I = Increase,D = Decrease,or N = No effect,to indicate the effect on retained earnings for each of the listed transactions. ____ Declaration of a property dividend. ____ Net income for the year. ____ Purchase of treasury stock at a cost greater than the original issue price. ____ Purchase of treasury stock at a cost less than the original issue price. ____ Issue common stock. ____ Resale of treasury stock for less than cost,assuming no previous treasury stock sales. ____ Resale of treasury stock for more than cost.

Olsson Corporation received a check from its underwriters for $72 million.This was for the issue of one million of its $5 par stock that the underwriters expect to sell for $72 per share.Which is the correct entry to record the issue of the stock?

During its first year of operations,Criswell Inc.completed the following transactions relating to shareholders' equity. January 5: Issued 300,000 of its common shares for $8 per share and 3,000 preferred shares at $110. February 12: Issued 50,000 shares of common stock in exchange for equipment with a known cash price of $310,000. The articles of incorporation authorize 5,000,000 shares with a par value of $1 per share of common and 1,000,000 preferred shares with a par value of $100 per share. Required: Record the above transactions in general journal form.

In 2014,Winn,Inc. ,issued $1 par value common stock for $35 per share.No other common stock transactions occurred until July 31,2016,when Winn acquired some of the issued shares for $30 per share and retired them.Which of the following statements correctly states an effect of this acquisition and retirement?