FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Of two corporations organized at approximately the same time and engaged in competing businesses,one issued $80 par common stock and the other issued $1 par common stock. Do the par designations provide any indication as to which stock is preferable as an investment? Explain.
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- Super Co is a corporation with common stock. They have an investor who paid $1,000 for 500 of their $1 par stock. How would this be reflected in the equity section of the balance sheet? O Increase of Common Stock for $1,000 Increase of Common Stock for $500 and Additional Paid in Capital for $500 O O Increase of Common Stock for $500 Increase of Additional Paid in Capital for $1,000 Oarrow_forwardHow to find the outstanding comon shares? This statement is correct. The per-share book value is calculated by dividing the company’s total common equity by the number of outstanding shares of common stock. The book value per share of Blue Hamster Manufacturing Inc.’s stock is the accounting value of assets that the company’s common shareholders would receive if the company was liquidated. It is listed as total common equity on the balance sheet (total assets minus total debt) and is calculated by dividing the value of total common equity by the outstanding shares. In this case, $32,813 million / 50 million shares = $656.26 per share.arrow_forwardIf a corporation fails to declare a dividend on cumulative preferred stock in a given year, the dividends in arrears accumulate from period to period. the dividends in arrears are recorded as liabilities. the common shareholders may still receive dividends in the current year. all of these options apply.arrow_forward
- Sturdy Stone Tools, Inc., announced a 100 percent stock dividend. Determine the impact (increase,decrease, no change) of this dividend on the following:1. Total assets.2. Total liabilities.3. Common stock.4. Total stockholders’ equity.5. Market value per share of common stock.arrow_forwardChoose the letter of the correct answer. How much is the total assets, liabilities and shareholder' equity of Tom Corporation? (check the picture attached) a. Asset = P 326,000; Liabilities = P 130,000; Shareholder's equity = P 196,000 b. Asset = P 320,000; Liabilities = P 136,000; Shareholder's equity = P 184,000 c. Asset = P 200,000; Liabilities = P 70,000; Shareholder's equity = P 130,000 d. Asset = P 326,000; Liabilities = P 180,000; Shareholder's equity = P 146,000arrow_forwardRead the transactions carefully and prepare the Journal Entry. Med-care incorporated is a health insurance company. The following account balances appear on the statement of financial position of Doc med-care Incorporated. Ordinary Shares P10 par, P400,000; Share Premium Ordinary, P42, 500; Retained Earnings P299,500. The board of Directors declared a 3 pesos dividend per share. Required: Journalize the entriesto record The declaration of the Dividend The issuance of the dividendarrow_forward
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