remium on issue of shares is a revenue expenditure
Q: "If management wishes to capitalize part of the earnings, it may issue a" share dividend.…
A: Dividend are the share or part of profits that is being distributed or divided to the shareholders…
Q: h profit or loss, gers Company shares
A: It includes share capital, share premium and retained earnings
Q: are units of equity or ownership in a company. * O Stocks O Bonds
A: Company requires funding for their investment which can be obtained from broadly two sources.…
Q: Restricted retained earnings by making an entry equal to the cost of treasury shares purchased.
A: Shareholder Equity- The amount invested by shareholders in a specific organization is referred to as…
Q: Account for the issuance of capital stock.
A: Hey there ! since the requirement part is missing, it is assumed to be a recording of journal entry.
Q: When an investor uses the equity method to account for investments in common stock, the investor’s…
A: Identify the appropriate answer for the given statement from the given choices. When an investor…
Q: What is the accounting treatment of the direct issue costs of shares of stocks? Debit to the…
A:
Q: Retained earnings must be appropriated if there are treasury shares due to: A. contractual…
A: Appropriation of retained earnings is created by the company for a specific purpose voluntarily. It…
Q: Which of the following is NOT correct regarding trading securities * a. Unrealized holding gains…
A: Securities are defined as those instruments which are used for investment purposes. These can be…
Q: When a company issues a stock dividend, which of the following would be affected? Group of answer…
A: It is a dividend paid to shareholders in the form of stock rather than cash. Although it might…
Q: For fi nancial assets classifi ed as trading securities, how are unrealized gains and losses refl…
A: Trading securities are debt or equity assets that management expects to aggressively sell for gain…
Q: When common stock is issued at an amount greater than par value, the difference between the par…
A: When common stock is issued for more than its par value, the difference between par value and…
Q: Which of the following are recognized as liability? I. Cash dividends payable II. Share dividends…
A: Scrip divided is the divided payable in form of cash or shares. It gives two options to share…
Q: Explain the following terms • Authorized Share Capital • Issued Share Capital Bonus Shares
A: Authorized Share capital Authorized capital is the maximum number of shares a public limited company…
Q: Which one or more of the following would you not include within the heading Equity and Reserves in a…
A: Equity and reserves that are shown under statement of financial position means all amount…
Q: Lifo and weighted average methods are related to?
A: Answer: A. Inventory valuation
Q: The two basic sources of stockholders’ equity are assets and equity. preferred and common. retained…
A: Stockholder’s equity:It represents the amount of investment made by the owner in the business.
Q: Distinguish between oversubscription and undersubscription of shares issued by a company.
A: Issuance of stock:It refers to the number of shares that are sold to the stockholders from number…
Q: In computing basic earnings per share (EPS), the amount of preference dividends on noncumulative…
A: Income per share (EPS) could be a key activity wont to decide the regular investor's a part of the…
Q: The purchase of treasury share does not affect Group of answer choices total assets. the amount of…
A: The treasury stock includes the shares that are repurchased from the shareholders of the business.
Q: ng and Reporting Topic: Issuance of Share Capital
A: Ordinary shares provide share in the ownership of the company The profit comes through capital…
Q: __________ securities are investments in preferred or common stock that represent ownership in a…
A: Definition of sources of finance: Companies can raise capital in two ways. 1 ) Debt 2 ) By issuing…
Q: Share Capital and Retained Earnings are Equity accounts. Select one: True False
A: Owner equity means the amount that belong to the owner of the business. Any profit will increase…
Q: ent Liabilities s Payable mon Shares ined Earnings
A: Sales refer to the concept when a business exchanges its goods and services with a customer in…
Q: It is calculated, taking into account the outstanding equity shares of the company A. Conversion…
A: Issue of shares is an important source of finance for the business. Several type of shares can be…
Q: The cost of dividend payable on redeemable preference shares should be included in______. Select…
A: Redeemable preference shares are those preference shares that will be repaid or redeemed after some…
Q: The entry to record the reissuance of treasury shares above their original acquisition cost includes…
A: Treasury shares are those shares which are already issued shares of the company and which are bought…
Q: Dividends declared on redeemable preference shares are recognized * O By a debit to retained…
A: Dividend means the amount given to shareholder of the company as profit distribution by…
Q: he effect of a share dividend is to transfer assets to stockholders assets to contributed capital…
A: We know that dividend is the distribution of profits of the entity in the form of new shares to the…
Q: Which of the following affects the total Shareholders’ Equity? Appropriation of retained earnings…
A: Appropriation of retained earnings: The appropriation of retained earnings means to allocate the…
Q: When treasury shares are reissued as dividends, what amount shall be charged to accumulated profits?
A: Treasury Stock also known as treasury shares are the outstanding equity shares of a company…
Q: Which of the following is true of a stock dividend?A. It is a liability.B. The decision to issue a…
A: Dividend is the part or share of profit that is being distributed to the shareholders. It can be in…
Q: What is the accounting for treasury share transactions? a. Treasury shares are accounted for as…
A: Answer) The correct answer in the given question is: (c) On re-issuance of treasury shares, a gain…
Q: against the related share premium b. Charged to an expense account c. Written off directly against…
A: (a) Charged against the related share premium
Q: Stockholders’ equity consists of which of the following?A. bonds payableB. retained earnings and…
A: Balance sheet is one of the important financial statement of the business. Three main elements of…
Q: Stockholders' equity is comprised of O common stock and retained earnings. O net income and retained…
A: The Question has covered the concept of Stock Holder's Equity. Stock Holder's Equity is the number…
Q: Explain the following accounting terms used in the preparation and presentation of published…
A: 1. Reserves : When a company earns profit at the end of the financial year a certain portion of…
Q: What is advantges and dis advantge of shares repurchacse to the company
A: A share repurchase is also known as buyback. Here the concerned company buys back its own shares…
Q: Subscription receivable and other receivables from sale of shares which are collectible currently…
A: Given statement Subscription receivable and other receivables from sale of shares which are…
Q: The costs of legal, promotional, and accounting services necessary to effect the sale of shares are…
A: Share issue cost: Cost such as legal fee, promotional charge, and accounting services incurred for…
Q: A major difference between IFRS and GAAP relates to the Revaluation surplus account. Retained…
A: There are various difference among the GAAP and IFRS: GAAP is Rules based whereas IFRS is…
Q: How would a share split affect the amount of total share capital, total shareholder's equity and…
A: Stock split results in division of outstanding shares. Hence, the total number of shares outstanding…
Q: Appropriation for accumulated profits, if reflected in separate account, shall be shown as a.…
A: Solution: Appropriation for accumulated profits, if reflected in separate account, shall be shown as…
Q: Equity gains are normally ________ to the _________ account. credited; Share Premium debited;…
A: Equity Gain: The Equity gain means it is the Equity share has a par value of $ 100 and it is…
Q: Record the issuance of shares when sold for cash and for noncash consideration
A: When the shares are issued for cash then common stock account is credited and cash account is…
Q: Dividends in arrears on preference shares are reported in the financial statements as a (an) a.…
A: dividend are paid by the company to its shareholders.both the shareholder whether it is common stock…
Q: Which of the following affects the total Shareholders’ Equity? a. Declaration of a scrip…
A: a Declaration of a scrip dividend :- this dividend is paid to shareholders at later date , company…
Q: . Unrealized gains and losses on investments in trading securities are reported a. as a current…
A: Trading securities are securities that can be sold immediately in the open market. These securities…
Q: Treasury stock should be reported in the financial statements of a corporation as a(n) Oa.…
A: Treasury stocks are the stocks repurchased by the company.
Q: Property or services received in exchange for capital stock should be recorded at the par or stated…
A: Capital stock of the company can be issued for cash or in exchange of assets or services. When…
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- A major difference between IFRS and GAAP relates to the Revaluation surplus account. Retained earnings account. Share capital account. Share premium account.when shares are issued at a premium the value of the share premium should be : a- taken to the profit and loss account b- shown under current liabilities in the balance sheet c- shown under capital & reserves in the balance sheet d- taken to the trading accountAppropriation for accumulated profits, if reflected in separate account, shall be shown as a. Component of equity as part of reserves b. Component of equity as part of share premium c. Component of total assets as noncurrent assets d. Component of total liabilities as current liability
- When the selling price of treasury shares is greater than its cost, the company credits the difference to a.Gain on Sale of Treasury Shares. b.Share Premium–Treasury. c.Treasury Shares. d.Share Premium–Ordinary.Share dividends distributed shall be reported as a note to financial statement a reduction in total shareholders' equity an addition to share capital outstanding a current liabilitySUBSCRIPTION OF SHARES
- Financial Accounting and Reporting Topic: Issuance of Share CapitalHow do icalculate the retained earnings and dividened payable?How would the share dividends distributable account balance be presented on the statement of financial position? * a. as part of current liabilities b. as addition to share capital c. as addition to retained earnings d. as addition to additional paid in capital