When do common stock shares issued exceed the number of shares outstanding?
At the date of the financial statements, common stock shares issued would exceed common stock shares outstanding as a result of the a. declaration of a stock split. b. declaration of a stock dividend.
How much stock can be distributed in a year?
The amount distributed in any one year can never exceed the net income reported for that year. In January 2010, Finley Corporation, a newly formed company, issued 10,000 shares of its $10 par common stock for $15 per share. On July 1, 2010, Finley Corporation reacquired 1,000 shares of its outstanding stock for $12 per share.
What are the two types of stockholders'equity?
d. both income retained by the corporation and contributions by stockholders. d. both income retained by the corporation and contributions by stockholders. Stockholders' equity is generally classified into two major categories: a. contributed capital and appropriated capital.
What is a primary source of stockholders’ equity?
c. a claim against a portion of the total assets of a company. d. only the amount of earnings that have been retained in the business. c. a claim against a portion of the total assets of a company. A primary source of stockholders' equity is a. income retained by the corporation.
When a corporation issues its capital stock in payment for services the best appropriate basis for recording the transaction is the?
50 Cards in this SetThe resedual interest in a corporation belong to the?Common shareholdersWhen a corporation issues its capitol stock in payment of services, the least appropriate basis for recording the transaction is the?par value of the shares issued48 more rows
When a corporation issues its capital stock in payment for services the least appropriate basis for recording?
either the proportional method or the incremental method. 30. When a corporation issues its capital stock in payment for services, the least appropriate basis for recording the transaction is thea. market value of the services received.
When a corporation issues a stock dividend the amount of?
A stock dividend is the issuance by a corporation of its common stock to shareholders without any consideration. If a corporation issues less than 25 percent of the total amount of the number of previously outstanding shares to shareholders, the transaction is accounted for as a stock dividend.
When a corporation purchases shares of its own stock it is called?
Preferred stock. Corporations purchase and hold their own stock, known as treasury stock, for several reasons. Identify which of the following is not a reason that a corporation would buy treasury stock. To reduce the market value of the common shares outstanding. On May 25, Tyler, Inc.
What is the accounting treatment for the excess of issue price over par value of shares issued?
The excess received over the par value is reported in the Additional Paid-in Capital from Common Stock account.
Which of the following rights is most commonly enhanced in an issue of preference share?
Enables a preference shareholder to accumulate dividends equal to the par value of the shares. Which of the following shareholder rights is most commonly enhanced in an issue of preference share? a. The right to vote for the board of directors.
Why do corporations issue stock dividends?
A corporation might issue a stock dividend instead of paying a cash dividend for the following reasons: To increase the number of shares of stock outstanding. To reduce the market price per share of stock. To transfer some of the corporation's retained earnings to paid-in capital.
Why do corporations generally issue stock dividends?
Corporations generally issue stock dividends in order to increase marketability of the stock.
Why stock dividend is issued?
A stock dividend, a method used by companies to distribute wealth to shareholders, is a dividend payment made in the form of shares rather than cash. Stock dividends are primarily issued in lieu of cash dividends when the company is low on liquid cash on hand.
What does a business typically receive when it issues stock to owners?
When a business issues common stock, what does it give to its owners? stock certificates.
Why would a corporation purchase its own stock?
The main reason companies buy back their own stock is to create value for their shareholders. In this case, value means a rising share price. Here's how it works: Whenever there's demand for a company's shares, the price of the stock rises.
When common stock is issued for services or non-cash assets cost should be?
(L.O. 2) When common stock is issued for services or non-cash assets, cost should be: a. only the fair market value of the consideration given up.
What is legal capital?
In a corporate form of business organization, legal capital is best defined as. a. the amount of capital the state of incorporation allows the company to accumulate over its existence.
What does "c" mean in a dividend?
c. means that the shareholder can accumulate preferred stock until it is equal to the par value of common stock at which time it can be converted into common stock.