The purchase of treasury shares Choices; Decreased authorized share capital Decreased outstanding shares Decreased issued shares Has no effect on outstanding shares
Q: Kim Corporation holds 10,000 shares of its P10 par common stock as treasury stock, which was…
A: Treasury stock: Shares which are bought back by the company from the open market but not retired…
Q: 07 the CPI was 154. At the beginning of 2008 the CPI was 169. What is the rate of inflation over…
A: Given CPI in 2007 = 154 CPI in 2008 = 169 The following formula wil be used to calculate rate of…
Q: How much may each value of the following creditors of Ardolio Inc. hope to receive? Compboy 7773…
A: Here discuss the details of the priority payment which are incurred at the time of liquidation and…
Q: 1.Suppose a construction company has an inventory of 1 million board ft of lumber purchased as…
A: Inventory means the amount of stock which is held for used in production or for resale purpose.…
Q: During a fiscal year, the balance of a parent company's Investment in Subsidiary ledger account for…
A: An equity measure is a method of accounting in which an investment is initially recognized at cost…
Q: Part 3 A number of transactions are described below in terms of the balance sheet accounts debited…
A: The question is based on the concept of Financial Accounting.
Q: Leasing has at least five possible competitive advantages over conventional financing of the cost of…
A: lease is a contractual agreement where by one party who is the owner of an asset grant the other…
Q: Instruction: Write "T" if the statement is correct and "F" if incorrect. 1. When a new partner is…
A: 1) True, when a new partner is admitted then the old partnership deed is automatically and a new…
Q: The Income statement, balance sheets, and additional Information for Virtual Gaming Systems are…
A: Cash flow statement is the summary showing cash receipts and payments using indirect or direct…
Q: Vhich of the following allow a tax filer to legally reduce the amount of tax owed? Select all that…
A: Question 4: Legal Exemptions/deductions/Credits available to the tax payer are: a) The Standard…
Q: Wright Company's cash account shows a $31,500 debit balance and its bank statement shows $29,800 on…
A: The bank reconciliation statement is prepared to equate the balances of cash book and pass with…
Q: I own a bike that I value at $1,000. I list it for sale on Craigslist. Barney sees the bike and…
A: Expectation Damages: It is the damage compensation paid by one of the party in an agreement or…
Q: Martin Manufacturer Ltd started its operations on 1 January 2021, and the planned production for…
A: The income statement represents the net income or net loss of the company that is calculated by…
Q: On December 10, Daniel Co. split its stock 3-for-1 when the market value was P65 per share. Prior to…
A: Note: When the company declares the share split, then the no. of shares increases in the split…
Q: is able to determine the data n ssic and 16 minutes to cut 1 un per day. It will take 14 minute tal…
A: Let, x be the number of Classic rubber shoes and y be the number of Freestyle rubber shoes.
Q: U.S. firms and households wishing to invest in stocks in a German company are ___ in the foreign…
A: This is a multiple choice question. The answer to this question along with appropriate reason has…
Q: issuing at P15 per share one-half of the 950,000 ordinary On January 1, 2021. "enn Conmpany began…
A: Shareholder equity (SE) refers to a firm's net value or the entire monetary amount that would be…
Q: Suppose a construction company has an inventory of 1 million board ft of lumber purchased as…
A: Historical Cost: According to accounting principles, a historical cost is a method of valuing assets…
Q: , 2018, ABC Company borrowed P1,000,000 on a 10% five-year note payable. On December 31, 2018, the…
A: Basic Accounting Concepts, Note Payable
Q: ompany acquired a trademark for P10 million from Bangkok Trading on January 2, 2022. The trademark…
A: Trademarks are acquired at some cost but these are to be amortized in the accounting over the life…
Q: balance in his capital account may
A: Partnership is a relationship between the two or more persons who are sharing profit of the business…
Q: A corporation has a taxable income of $2,564,306. At this income level, the federal income rate is…
A: Introduction: Income tax deductions of various types can be utilized to lower taxable income. Tax…
Q: a. His sari-sari store has cash deposited in a bank account amounting to P50,000 b. His sari-sari…
A: Statement of Financial position includes: Assets accounts Liabilities accounts Shareholders equity…
Q: Johnson Company has two sources of funds: long-term debt and equity capital. Johnson Company has…
A: Formula: Return on investment (ROI) = Net income / Average assets Residual income = Net income -…
Q: Which of the following methods consider the time value of money? A. payback and accounting rate of…
A: Time Value of Money The time value of money is the concept that money you have now is worth more…
Q: athered the following data for use in developing the budgeted income statement for March: Estimated…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Before considering any deductions because of these casualties, Tony's AGI is $80,000. What…
A: Calculation of deductions that Tony may take are as follows:
Q: Question 42 When the Fed purchases government securities, it Question 42 options: a)…
A: Government securities are government borrowing financings that are used to fund everyday activities…
Q: Kegler Bowling buys scorekeeping equipment with an invoice cost of $175,000. The electrical work…
A: Lets understand the basics. As per IAS 16 "Property, plant and equipment", PPE should initially…
Q: Extreme UV Inc. has accumulated development costs that meet the criteria for capitalization at…
A: Under revaluation of intangible assets difference shall be shown in other comprehensive income.…
Q: . Given the information, determine the annual cost of hiring the outside accountant.
A: Outsourcing cost is the costs which have to be paid person or the employee to which the said work…
Q: Holden Simpson manages a Dairy Land drive-in. His straight-time pay is $16 per hour, with…
A: Computation of gross pay 40 * $16 + [(51 - 40hrs) * $16 *1.5] $640 + $264 $904 Computation of Net…
Q: ABC Company data: Sales 9s0000 Variable and fixed costs both 468000 Beginning retained earnings…
A: Formula: Ending Retained Earnings = Beginning retained Earnings + net income - Dividends paid
Q: Dee's made two announcements concerning its common stock today. First, the company announced that…
A: Dividend Discount Model is a Stock Valuation Technique in which we discount the future dividends to…
Q: Net Operating Loss. During 2021, Karen, a single taxpayer, reports the following income and expense…
A: The part of your gross income used to calculate how so much tax you owe in a given tax year is…
Q: Rodriguez Company pays $342,225 for real estate with land, land improvements, and a building. Land…
A: The lump sum paid for acquisition of different assets can be allocated to different assets on the…
Q: Create a T-Accounts and General Journal. Note: Office supplies has a P575 balance at the end of the…
A: Journal is a book in which all business financial transactions are recorded when they occur. All…
Q: Direct labor Direct materials 17 per unit $4 11 per unit Overhead Total variable overhead Total…
A: Formula: Product cost per unit = Direct materials + Direct labor + Total variable overhead
Q: IMA Manufacturing has just purchased a difference in conditions (DIC) policy with a $5 million…
A: Deductible amount that policy holder have to pay before the insurance company start up. So first pay…
Q: Which of the following statements is correct concerning an auditor's required communication with…
A: Auditing means the independent checking of company operation by outsider. Auditor is a qualified and…
Q: On November 7, Mura Company borrows $350,000 cash by signing a 90-day, 8%, $350,000 note payable.…
A: Note means an instrument issued by company acknowledging the debt due from company to bond holder.…
Q: Diego Company paid $186,000 cash to acquire a group of items consisting of land appraised at $53,000…
A: Formula: Cost allocated to Land = Total amount paid x Appraisal value of Land / Total Appraisal…
Q: Compute the total profit or loss for the company.
A: Total profit for the company is the profit which has been added together from all the separate…
Q: Safety regulations are superior when an Injurer can escape paying damages by filing bankruptcy. True…
A: Bankruptcy Bankruptcy refers to the legal process where people who become insolvent or are not able…
Q: A company has several branch operations that sell merchandise transferred from the home office. This…
A: The question is related to Branch Accounting. The details are given regarding the same.
Q: Following information is given for NizCol LLCa small firm situated in Nizwa: All figures are in OMR…
A: The current ratio is the amount of income that measures a company's ability to pay short-term…
Q: Answer time left: 01:45:26 * Please use the mouse to highlight where the specific question text is…
A: Stockholder's Equity - Stockholder's Equity includes the amount contributed by shareholders issued…
Q: Mar. 4 Issued 20,000 shares of $1 par value common stock at $15 per share. May 22 Purchased 1,700…
A: The treasury stock includes the own shares of the company that are repurchased from the…
Q: Calculate for Fred the correct amount of employment remuneration that he should include on his tax…
A: Employment remuneration is the amount of money which has been received by the employee for the work…
Q: A purchases cut-off procedure was rendered by your audit staff in line with your audit of the…
A: FOB (Free on board) means that how long the product is being in transit is free to the receiver. FOB…
Step by step
Solved in 2 steps
- Which statement best describes a possible result of treasury shares transactions? * May increase but not decrease retained earnings May increase net income if the cost method is used May decrease but not increase retained earnings The excess of original issuance price over the retirement cost is * Debited to retained earnings Credited to Share Premium - Retirement Debited to Share Premium - Treasury Shares and then Retained earnings None of the aboveIf a company resells treasury stock at a loss, and that amount exceeds any balance in the treasury stock APIC account, the remaining loss is debited to: Group of answer choices Additional Paid in Capital (APIC) -Common Stock Treasury stock cannot be sold at a loss Retained earnings Loss on sale of treasury stockSale of treasury shares at less than cost shall be charged to * a. Loss on sale of treasury shares to be reported as other expense b. Retained earnings and then additional paid in capital from treasury share transactions c. Additional paid in capital from treasury share transactions and then retained earnings d. Share premium from original issuance, additional paid in capital from treasury share transactions and then retained earnings
- When non-par value shares are reacquired at a cost greater than their average issue price and cancelled, what account(s) should be debited? Select one: a. The share account for the total cost. b. The share account for the average issue price, contributed surplus-repurchases up to its account balance, other contributed surplus relating to this class of shares in proportion to the number of shares repurchased versus outstanding and lastly retained earnings for any remaining amount. c. The share account for the average per share amount, retained earnings for the additional amount, and lastly contributed surplus for any remaining amount. d. The share account for the average per share amount and a loss account for the additional amount. e. none of the above answers are correct.1. What is the accounting for treasury share transactions? a. Treasury shares are accounted for as financial assets. b. On repurchase or re-issuance of previously purchased own shares, no gain or loss is recognized. c. On re-issuance of treasury shares, a gain or loss is recognized equal to the difference between the previous repurchase price and the re-issuance price. d. On repurchase of treasury shares, a gain or loss is recognized equal to the difference between the amount at which the shares were issued and the repurchase price for the shares.When treasury shares are reissued at more than the reacquisition cost, the excess of the reissuance price over the cost is: * Debited to the "Share Premium – Treasury Shares" account Debited to the "Retained Earnings" account Credited to the "Share Premium – Treasury Shares" account O Credited to the "Retained Earnings" account
- Which of the following is False in regards to Share premium account? a. It will be shown under the shareholders equity b. It will be collected when the issue price is more than the par value of shares c. It will be collected when the par value of share is more than the issue price d. It will not be shown under current assets in the balance sheeting1.Which statement is incorrect? * a. On repurchase of treasury shares, no gain or loss is recognized. The purchase price would become the cost of treasury shares. b. On reissuance of treasury shares, the difference between the cost and reissue price of treasury shares is debited or credited to share premium rather than to profit or loss. c. If treasury shares are retired above par, the difference between the cost and the par value is automatically charged to retained earnings. d. Treasury shares can be subjected to share split and can be re-issued as share dividends. e. none of the above 2. Which statement is incorrect? a. Dividends out of retained earnings is limited to the balance of unappropriated retained earnings, except for share dividends. b. Cash dividends are paid on the basis of the number of shares issued less the number of treasury shares. c. Property dividends payable shall be measured based on fair value of the property on the date of declaration, reporting and…1. Which of the following would never affect retained earnings? a. Correction of a prior period errorsb. Payment of long-term indebtednessc. Stock dividendd. Reissue of treasury shares 2. Appropriation for accumulated profits, if reflected in separate account, shall be shown as a. Component of equity as part of share premiumb. Component of total liabilities as current liabilityc. Component of total assets as noncurrent assetsd. Component of equity as part of reserves 3. An appropriation of accumulated profits for possible contingencies should be a. Charged with all losses related to that contingencyb. Transferred to income as losses are realizedc. Shown within shareholders’ equity in the statement of financial positiond. Classified in the liability section of the statement of financial position4. When preference share is cumulative, preferred dividends not declared in a period are a. called dividends in arrearsb. Distribution of earningsc. never paidd. considered a liability 5.…
- Which of the following statement is false in regards to Share premium? a. It will be shown under equity section in the balance sheet b. It will be credited at the time of issue of new shares along with premium c. It cannot be distributed as dividend to the shareholders d. It can be distributed as dividend to the shareholdersThe excess of retirement cost over the original issuance price is Debited to Share Premium - Treasury Shares Debited to Retained Earnings Debited to Share Capital Both a and b respectively Which of the following is an appropriate presentation of treasury stock?" As a marketable security As a deduction at cost from total stockholders' equity As a deduction at cost from total contingent liabilities As a deduction at par from total stockholders' equity1. The original issuance of share capital for a consideration less than its par value is least likely called as options •watered stock •Discount on share capital •Issuance below par or stated value •Reissuance of treasury share below cost 2. At what date should share certificate be issued? Subscription Authorization Full payment Retirement
