Property or services received in exchange for capital stock should be recorded at the par or stated value of the shares issued. True or False

Q: rue or False. When common stock is issued in exchange for land, the land should be recorded in the…

A: Issue of Shares for consideration other than cash - In these transactions, some asset or business is…

Q: When a company decides to issue capital on the stock market what is the process called? (a) An…

A: A) An Initial Public Offering means a company issuing capital to public for the first time on stock…

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: The sale of stock and the sale of bonds are reported as financing activities. Are payments of…

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…

Q: Describe the accounting entry for a stock dividend, if any.Describe the accounting entry for a stock…

A: Stock dividend declaration has two type. Declaration of stock dividend more than 30% represents…

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: For fi nancial assets classifi ed as trading securities, how are unrealized gains and lossesrefl…

A: Trading securities are debt or equity assets that management expects to aggressively sell for gain…

Q: If an entity has issued cumulative redeemable preference shares to the market, discuss what effects…

A: Preference shares are those shares on which a fixed rate of dividend is paid by the company. At the…

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: Debt securities acquired by a corporation which are accounted for by recognizing unrealized holding…

A: Solution: Debt securities acquired by a corporation which are accounted for by recognizing…

Q: Differentiate treasury shares with redeemable shares. (With explanation and example)

A: Many companies have more than one type of  shareholder and it's possible to issue different share…

Q: Which of the following would result from watered shares? overstated capital understated assets…

A: solution : Which of the following would result from watered shares? Correct answer is overstated…

Q: Explain the difference between authorized, issued, and outstanding shares.

A: Stockholders’ Equity: Stockholders’ Equity is the total amount of capital given to a company by its…

Q: What is the monetary amount called that is printed on a stock certificate and listed in the charter?…

A: Stock certificate: It implies to a legal document that represents the legal ownership of the number…

Q: Stockholders are eligible for a dividend if they own the stock on the date ofa. declaration.b.…

A: correct option is B. Record Stockholders are eligible for a dividend if they own the stock on the…

Q: when shares are issued at a premium the value of the share premium should be :

A: Answer:   Option c.

Q: Stock appreciation right would normally be settled through

A: Stock appreciation right is the payment made to the workers of a company in respect of appreciation…

Q: remium on issue of shares is a revenue expenditure

A: Premium on issue of shares is not a revenue expenditure.

Q: f the employee has the choice as to whether the settlement is in cash or by issuance of equity…

A: A Compound Financial Instrument is an instrument that has the characteristic of both an equity and…

Q: deemable preference shares will be shown under: a. Equity in the statement of financial position b.…

A: Solution: Redeemable preference shares will be shown under " Equity in the statement of financial…

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: f stock is issued for an asset other than cash the asset should be recorded on the books of the…

A: SOLUTION- CURRENT MARKET VALUE OF ASSET  GIVES PARTIES INTERESTED IN MAKING A TRANSACTION THE…

Q: Can a stockholder exercise his/her appraisal right

A: An appraisal right is the constitutional right of a company's stockholder to have a…

Q: Which of the following items would not appear in the section of the statement of financial position…

A: A capital reserve is different from the reserve capital. The reserves are the amount set aside by a…

Q: Common Stock investments using the fair value method are: A. reported at fair value on the balance…

A: Common Stock investments using the fair value method are reported at fair value as on the balance…

Q: Distinguish the differences between stock splits and stock dividends.

A: Dividends are the profits of the company which is distributed among the shareholders of the company.…

Q: Should preference shares be disclosed as equity or as debt?

A: Stocks: Stocks are shares in ownership in other companies. It represents the capital raised by a…