Intermediate Accounting, 10 Ed
10th Edition
ISBN: 9781260310177
Author: Mark W. Nelson, Wayne B. Thomas J. David Spiceland
Publisher: McGraw-Hill Education
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Question
Chapter 18, Problem 18.9BE
To determine
To determine: The amount by which the paid-in capital increases if it sells 1 million treasury shares at $29 per share (Use FIFO method to determine treasury cost).
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p6
According to M&M Proposition 2, the cost of a firm’s common stock is directly related to
the rating of its common stock in the market.
the number of shares outstanding.
its asset turnover ratio.
its debt-equity ratio.
1. The PowerPoint
Corporation has two classes
of share capital outstanding:
9% (dividend rate), P20 par,
Preference and P70 par,
Ordinary. During the fiscal
year ending December 31,
2012, the company had the
equity transactions in
chronological order as
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Dividends were paid at the
end of the fiscal year on the
ordinary share at P1.20 per
share and on the preference
at the preference rate. Profit
for the year was P850,000.
No. of shares
Price per share
Issue of preference share
10,000
P28
Issue of ordinary share
35,000
70
Reacquisition and retirement of preference
2,000
30
Purchase of treasury ordinary share
5,000
80
Share split
2-for-1
Reissue of treasury ordinary share.
5,000
52
Balances of the accounts in the shareholders' equity section of the December 31, 2011 statement of financial
position were:
Preference Share Capital, 50,000 shares
P1,000,000
Ordinary Share Capital, 100,000 shares
7,000,000
Share Premium - Preference
400,000
Share Premium-Ordinary…
Discussion Board #12
What are the primary reasons for a stock split and for treasury stocks?
Chapter 18 Solutions
Intermediate Accounting, 10 Ed
Ch. 18 - Identify and briefly describe the two primary...Ch. 18 - Prob. 18.2QCh. 18 - Prob. 18.3QCh. 18 - Prob. 18.4QCh. 18 - Prob. 18.5QCh. 18 - Prob. 18.6QCh. 18 - Prob. 18.7QCh. 18 - What is meant by a shareholders preemptive right?Ch. 18 - Terminology varies in the way companies...Ch. 18 - Most preferred shares are cumulative. Explain what...
Ch. 18 - The par value of shares historically indicated the...Ch. 18 - Prob. 18.12QCh. 18 - How do we report components of comprehensive...Ch. 18 - The balance sheet reports the balances of...Ch. 18 - At times, companies issue their shares for...Ch. 18 - Prob. 18.16QCh. 18 - The costs of legal, promotional, and accounting...Ch. 18 - When a corporation acquires its own shares, those...Ch. 18 - Discuss the conceptual basis for accounting for a...Ch. 18 - The prescribed accounting treatment for stock...Ch. 18 - Brandon Components declares a 2-for-1 stock split....Ch. 18 - What is a reverse stock split? What would be the...Ch. 18 - Suppose you own 80 shares of Facebook common stock...Ch. 18 - Prob. 18.24QCh. 18 - Comprehensive income LO181 Schaeffer Corporation...Ch. 18 - Stock issued LO184 Penne Pharmaceuticals sold 8...Ch. 18 - Prob. 18.3BECh. 18 - Prob. 18.4BECh. 18 - Prob. 18.5BECh. 18 - Retirement of shares LO185 Agee Storage issued 35...Ch. 18 - Treasury stock LO185 The Jennings Group...Ch. 18 - Prob. 18.8BECh. 18 - Prob. 18.9BECh. 18 - Property dividend LO187 Adams Moving and Storage,...Ch. 18 - Stock dividend LO188 On June 13, the board of...Ch. 18 - Prob. 18.14BECh. 18 - Stock split LO188 Refer to the situation...Ch. 18 - Prob. 18.16BECh. 18 - Prob. 18.2ECh. 18 - Earnings or OCI? LO182 Indicate by letter whether...Ch. 18 - Stock issued for cash; Wright Medical Group LO184...Ch. 18 - Issuance of shares; noncash consideration LO184...Ch. 18 - Prob. 18.6ECh. 18 - Share issue costs; issuance LO184 ICOT Industries...Ch. 18 - Prob. 18.14ECh. 18 - Prob. 18.16ECh. 18 - Prob. 18.20ECh. 18 - Prob. 18.22ECh. 18 - Prob. 18.25ECh. 18 - Various stock transactions; correction of journal...Ch. 18 - Prob. 18.1DMPCh. 18 - Prob. 18.6DMPCh. 18 - Prob. 18.8DMP
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