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School

New Jersey Institute Of Technology *

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Course

8803

Subject

Finance

Date

May 24, 2024

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png

Pages

1

Uploaded by SargentComputer6048

Question 23 2/2ptsil Question 24 2/2pts Consider the following situation then evaluate statements 1,2, and 3 as True or False. How does the purchase of treasury stock affect asset and equity accounts? Assume In October 2020 the board of directors of Blanker's Holdings declared an annual that the purchase is made with cash. dividend of $100,000. The dividend was paid in January 2021. Blanker's Holding fiscal year is the same as the calendar year. Statement 1. Blanker's Retained Earnings was * Assets decrease and equity decreases immediately reduced by $100,000 when the dividend was declared in October. Statement 2. In Blanker's October Income Statement a $100,000 dividend expense was recognized. Statement 3. Because the dividends were not paid out until January 2021, Blanker's FY2020 Statement of Cash Flows will not include the October 2020 dividend. Only Statement 1 is True Only Statement 2 is True Question 25 242EE Only Statement 3 is True (True/False). The declaration of a stock dividend does not impact retained earnings. All three Statements are True Correct! All three Statements are False Statements 1 and 3 are True but Statement 2 is False Statements 2 and 3 are True but Statement 1 is False Question 26 2/2pts Statements 1 and 2 are True, But Statement 3 is False Consider both S - 1. Financial mustibei 3 dif a company owns more than 20% of another company. Statement 2. If a firm ¢ lid: financial the portion of company (or companies) not owned by the firm must be reported separately in the Stockholder's Equity section of the consolidated statements. * Only Statement 2 is True Downloaded by Shubh kh (shubhkhose.sk@gmail.com) Downloaded by Shubh kh (shubhkhose.sk@gmail.com)
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