FINANCIAL+MANAG.ACCT.
9th Edition
ISBN: 9781260728774
Author: Wild
Publisher: RENT MCG
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Question
Chapter 11, Problem 18QS
To determine
Concept Introduction:
Stockholders’ equity: Stockholders' equity includes the assets that remain with a company after all liabilities have been paid. To determine the value of
The impact of various transactions on stockholder’s equity.
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Identify whether stockholders’ equity would increase (I), decrease (D), or have no effect (NE) as a resultof each separate transaction New shares of common stock are issued for cash.
As of the date of the financial statements, the number of common shares issued will exceed the number of shares outstanding as a result of the:
o. purchase of treasury stocks.
b. declaration of a large stock dividend.
c. declaration of a "Stock split" or fractionation of shares.
d. immediate purchase and withdrawal of common shares.
Indicate whether each of the following transactions increases (+), decreases (−), or has no effect (NE) on total assets, total liabilities, and total stockholders’ equity. The first transaction is completed as an example.
Transaction
TotalAssets
TotalLiabilities
TotalStockholders’ Equity
Issue common stock
+
NE
+
Issue preferred stock
Purchase treasury stock
Resell treasury stock
Chapter 11 Solutions
FINANCIAL+MANAG.ACCT.
Ch. 11 - Prob. 1QSCh. 11 - Prob. 2QSCh. 11 - Prob. 3QSCh. 11 - Prob. 4QSCh. 11 - Prob. 5QSCh. 11 - Prob. 6QSCh. 11 - Prob. 7QSCh. 11 - Prob. 8QSCh. 11 - Prob. 9QSCh. 11 - Prob. 10QS
Ch. 11 - Prob. 11QSCh. 11 - Prob. 12QSCh. 11 - Prob. 13QSCh. 11 - Prob. 14QSCh. 11 - Prob. 15QSCh. 11 - Prob. 16QSCh. 11 - Prob. 17QSCh. 11 - Prob. 18QSCh. 11 - Prob. 19QSCh. 11 - Prob. 20QSCh. 11 - Prob. 21QSCh. 11 - Prob. 22QSCh. 11 - QS 11-15 Basic earnings per share A1
Epic company...Ch. 11 - Prob. 24QSCh. 11 - Prob. 25QSCh. 11 - Prob. 1ECh. 11 - Prob. 2ECh. 11 - Prob. 3ECh. 11 - Prob. 4ECh. 11 - Prob. 5ECh. 11 - Prob. 6ECh. 11 - Prob. 7ECh. 11 - Prob. 8ECh. 11 - Prob. 9ECh. 11 - Prob. 10ECh. 11 - Prob. 11ECh. 11 - Prob. 12ECh. 11 - Prob. 13ECh. 11 - Prob. 14ECh. 11 - Prob. 15ECh. 11 - Prob. 16ECh. 11 - Prob. 17ECh. 11 - Prob. 18ECh. 11 - Prob. 19ECh. 11 - Prob. 20ECh. 11 - Prob. 21ECh. 11 - Prob. 22ECh. 11 - Prob. 23ECh. 11 - Prob. 24ECh. 11 - Prob. 1PSACh. 11 - Prob. 2PSACh. 11 - Prob. 3PSACh. 11 - Prob. 4PSACh. 11 - Prob. 1PSBCh. 11 - Prob. 2PSBCh. 11 - Prob. 3PSBCh. 11 - Prob. 4PSBCh. 11 - Prob. 5PSBCh. 11 - Prob. 11SPCh. 11 - Prob. 1.1AACh. 11 - Prob. 1.2AACh. 11 - Prob. 1.3AACh. 11 - Prob. 1.4AACh. 11 - Prob. 1.5AACh. 11 - Prob. 2.1AACh. 11 - Prob. 2.2AACh. 11 - Prob. 2.3AACh. 11 - Prob. 2.4AACh. 11 - Prob. 3.1AACh. 11 - Prob. 3.2AACh. 11 - Prob. 1DQCh. 11 - Prob. 2DQCh. 11 - Prob. 3DQCh. 11 - Prob. 4DQCh. 11 - Prob. 5DQCh. 11 - List the general rights of common stockholders.Ch. 11 - Prob. 7DQCh. 11 - Prob. 8DQCh. 11 - Prob. 9DQCh. 11 - Prob. 10DQCh. 11 - Prob. 11DQCh. 11 - Prob. 12DQCh. 11 - Prob. 1BTNCh. 11 - Prob. 2BTNCh. 11 - Prob. 3BTNCh. 11 - Prob. 5BTN
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Similar questions
- The date the board of directors votes to declare and pay a cash dividend is called the: A. date of stockholders meeting B. date of payment C. date of declaration D. date of liquidationarrow_forwardThe total amount of cash and other assets received by a corporation from the stockholders in exchange for the shares is ________. A. always equal to par value B. referred to as retained earnings C. always below its stated value D. referred to as paid-in capitalarrow_forwardWhich of the following is true of a stock dividend? A. It is a liability. B. The decision to issue a stock dividend resides with shareholders. C. It does not affect total equity but transfers amounts between equity components. D. It creates a cash reserve for shareholders.arrow_forward
- Treasury stock is listed as a(n) __________ on the balance sheet. (a) current liability (b) current asset (c) deduction from stockholders equity (d) addition to stockholders equityarrow_forwardAuthorized stock represents the: number of shares that are currently held by stockholders. number of shares that have been sold. number of shares that have been repurchased by the corporation. maximum number of shares that can be issued.arrow_forwardIndicate the effects of each of the following transactions on Assets, Liabilities, Share Capital and Retained Earnings. Use + for increase, - for decrease, and 0 for no effect. Share Retained Assets Liabilities Capital Earnings 1. Declaration of cash dividends 2. Payment of cash dividends 3. Declaration of share dividends 4. Issuance of share dividends 5. A share split 6. Cash purchase of treasury stock 7. Sale of treasury stock below costarrow_forward
- Indicate the principal effects of a stock dividend versus a stock split on the issuing corporation. Respond in the spaces as follows: Change and No Change. Stock Dividend Stock Split Number of Shares Outstanding Par Value per Share Total Par Outstanding Retained Earnings Total Stockholders' Equity Composition of Stockholders' Equityarrow_forwardWhen a corporation has outstanding both common and preferred stock Select one: a. Earnings per share is computed without regard to the amount of dividends declared on common stock. b. Basic and diluted earnings per share are reported only if the preferred stock is cumulative c. Earnings per share is reported for each type of stock outstanding d. Earnings per share is computed without regard to the amount of the annual preferred dividends.arrow_forwardIndicate whether each of the following transactions would increase, decrease or have no effect on total assets, total liabilities, total shareholders'equity, and the number of shares: Shareholders" Number of Assets Liabilities Transaction Equity Shares Declared cash dividend. Increase Paid cash dividend declared in part (a). Decrease No Effect Declared stock dividend. Distributed stock dividend declared in part (c). Split stock 2-for-1.arrow_forward
- Which of the following statements best describes the effect of treasury stock transactions on assets and stockholders' equity? O The purchase of treasury stock increases total assets and increases total stockholders' equity. O The sale of treasury stock increases total assets and may decrease both paid-in-capital and retained earnings. O The purchase of treasury stock decreases assets and decreases both retained earnings and total stockholders' equity. O The sale of treasury stock increases total assets and may increase or decrease total stockholders' equity.arrow_forwardWhen a company buys shares of its own stock to be held in treasury, it records a reduction in: C . assets and an increase in shareholders’ equity.arrow_forwardEffect of Cash Dividend and Stock Split Indicate whether the following actions would increase, decrease, or not affect Indigo Inc.'s total assets, liabilities, and stockholders' equity: Stockholders' Assets Liabilities Equity 1. Authorizing and issuing stock certificates in a stock split 2. Declaring a stock dividend 3. Issuing stock certificates for the stock dividend declared in (2) 4. Declaring a cash dividend 5. Paying the cash dividend declared in (4)arrow_forward
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