shares at the time of repurchase. Which of the following correctly describes the effect of the share repurchase and retirement? Group of answer choices a. Additional paid-in capital is decreased. b. Retained earnings is increased. c. 2020 net income is decreased. d. 2020 net income is increased.
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1. In 2018, Brown, Inc., issued $1 par common stock for $28 per share. No other common stock transactions occurred until August 31, 2020, when Brown repurchased some of its issued shares on the open market $23 per share. Brown retired the shares at the time of repurchase. Which of the following correctly describes the effect of the share repurchase and retirement? Group of answer choices
a. Additional paid-in capital is decreased.
b.
c. 2020 net income is decreased.
d. 2020 net income is increased.
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- In 2019, Gerry , Inc. issued $1 par common stock for $35 per share. No other common stock transactions occurred until July 31, 2021, 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? A. 2021 net income is decreased. B. Additional paid-in capital is decreased. C. 2021 net income is increased. D. Retained earnings is increased.NEED ASAP. Solve correctly and show your computations. In 2020, ABC Corporation issued 50,000 shares of P10 par value for P100 per share. In 2021, the entity reacquired 2,000 shares at P150 per share and immediately canceled these 2,000 shares. In connection with the retirement of shares, what amount should be debited to Share Premium, and Retained Earnings, respectively?6. ABC Corp holds 1,000 shares of XYZ Corp.'s shares since 2019. The following are data available at Dec 1, 2020: Cost per share P3.00 Transaction cost per share (upon acquisition) P1 Most recent transaction price per share P2 Transaction cost per share (current) P.50 If ABC classified these shares as investment in stocks-FVOCI, how much is the adjustment for the change in fair value? FVPL 2,000 FVOCI 1,000 FVOCI 1,500 FVOCI 2,000
- 3. STRANGE Inc. has the following transactions relating to investments during 2021: January 8 Acquired 10,000 shares of ANCIENT ONE Inc. for P 1,000,000 paying additional P 20,000 for brokerage and another P 5,000 for commission. February 29 Received dividends from ANCIENT ONE Inc. declared January 3, 2020 to the stockholder of record January 31, 2020, P 20,000. On December 31, 2021 and 2022, the market value per share of the ANCIENT ONE stock is Php 95 and Php 120, respectively. Required: Prepare journal entries for each of the transactions enumerated above for 2021 and 2022, assuming: a. Investment in equity securities - FVPL b. Investment in equity securities - FVOCIIn 2014, Fogg, Inc., issued $10 par value common stock for $25 per share. No other common stock transactions occurred until March 31, 2016, when Fogg acquired some of the issued shares for $20 per share and retired them. Which of the following statements correctly states an effect of this acquisition and retirement? a. 2016 net income is decreased. b. Additional paid-in capital is decreased. c. 2016 net income is increased. d. Retained earnings is increased.For the next (2) two questions: DEF, Inc. had the following portfolio of financial assets as of December 31, 2021 before any year-end fair value adjustments: Investment Ben Corp. stocks (20,000 shares) Chris, Inc. stocks (40,000 shares) Balance P605,000 1,100,000 The shares of Ben Corp. were acquired on February 20, 2021 with an intention of generating short- term profits from the share price's fluctuations. The company paid P30.25 per share, which includes P1.25 per share broker's fees and commissions. A P2 per share cash dividends were received on March 30. These dividends were declared by Ben Corp. on January 20, 2021 to stockholders as of record date March 1, 2021. The shares of Ben Corp. are trading at P30/share at year-end. The company paid P27.50 per share, including P0.50 per share broker's fees and commissions on the acquisition of Chris, Inc.'s stocks on March 1, 2021 for trading purposes. A P3 per share dividends were received from the said shares on May 3, 2021. The…
- Presented below is information related to the purchases of common stock by Culver Company during 2025. Investment in Arroyo Company stock Investment in Lee Corporation stock Investment in Woods Inc. stock Total (a) (b) Cost (at purchase date) (a) $95,000 247,000 (b) 183,000 (Assume a zero balance for any Fair Value Adjustment account at the beginning of 2025.) No. Account Titles and Explanation $525,000 Fair Value (at December 31) $74,000 293,000 194,000 $561,000 What entry would Culver make at December 31, 2025, to record the investment in Arroyo Company stock if it chooses to report this security using the fair value option? (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) What entry would Culver make at December 31, 2025, to record the investments in the Lee and Woods corporations, assuming that…During 2020, Roblez Corporation had the following transactions and events. 1. Declared a cash dividend. 2. Issued par value common stock for cash at par value. 3. Completed a 2-for-1 stock split in which $10 par value stock was changed to $5 par value stock. 4. Declared a small stock dividend when the market price was higher than par value. 5. Made a prior period adjustment for overstatement of net income. 6. Issued the shares of common stock required by the stock dividend declaration in item no. 4 above. 7. Paid the cash dividend in item no. 1 above. 8. Issued par value common stock for cash above par value. Indicate the effect(s) of each of the foregoing items on the subdivisions of stockholders’ equity. Paid-in Capital Item Capital Stock Additional Retained Earnings 1. No Effect No Effect Decrease 2. IncreaseDecreaseNo Effect IncreaseDecreaseNo Effect IncreaseDecreaseNo Effect 3.…Sheridan Company purchased its own par value stock on January 1, 2020 for $19700 and debited the treasury stock account for the purchase price. The stock was subsequently sold for $10900. The $8800 difference between the cost and sales price should be recorded as a deduction from a. additional paid-in capital without regard as to whether or not there have been previous net "gains" from sales of the same class of stock included therein. b. retained earnings. c. net income. d. additional paid-in capital to the extent that previous net "gains" from sales of the same class of stock are included therein; otherwise, from retained earnings.
- Hardstone Inc. had excess cash and invested it in the stock of Softrock, Inc. On August 5, 2021 Hardstone bought 7,000 shares of Softrock at $12 per share. On September 30, 2021, Softrock paid a cash dividend of $1 per share. On December 31, 2021, the stock had decreased in value to $10 per share. Which of the following would be included in the journal entry for December 31, 2021? No entry required Debit to Trading Securities: $14,000 Debit to Unrealized Loss on Investments: $14,000 Credit to Cash: $7,000 Credit to Dividend Revenue: $7,000. During 2022, ABC Corp. acquired 500 shares of XYZ stock at P30 per share. ABC accounted for the stock as FVOCI financial assets. The market price per share of ABC's stock as of December 31, 2022 and 2023, is P22.50 and P39.50, respectively. How much-unrealized gain or loss on long-term investments should ABC report on its December 31, 2022, statement of comprehensive income? Use negative sign for the unrealized loss How much unrealized gain or loss on long-term investments should ABC report on its December 31, 2022, stockholder’s equity? Use negative sign for the unrealized loss How much-unrealized gain or loss on long-term investments should ABC report on its December 31, 2023, statement of comprehensive income? Use negative sign for the unrealized loss How much-unrealized gain or loss on long-term investments should ABC report on its December 31, 2023, stockholder’s equity? Use negative sign for the unrealized lossOn December 31, 2020, the Treasury Share account of Jumbo Corporation showed a balance of $490,000. These shares were previously reacquired from ordinary shareholders. On December 31, 2020, Ordinary Share Capital showed a balance of $22,050,000 at $75 par value. On the same date, there were 238,000 outstanding ordinary shares. All subscriptions were fully paid and share certificates were issued. How much was the cost per share of treasury shares upon reacquisition? Round off you answer to two decimal places.