. What amount should be recognized as share premium at year-end? 5. What is the total shareholders’ equity at year-end?

Q: On February 22, Stewart Corporation acquired 6,000 shares of the 210,000 outstanding shares of…

A: Common stock investing is an important way for individuals and organizations to invest in a company…

Q: On January 23, 16,000 shares of Tolle Company are acquired at a price of $24 per share plus a $160…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: On September 14, 10,000 shares of Grey Company are acquired at a price of $100 per share plus a $500…

A: Journal is the basic recording book in accounting. It is the primary book of entry for recording…

Q: Incentive Corporation was authorized to issue 12,000 shares of common stock, each with a $1…

A:

Q: Spangler Corporation's charter allows it to issue 25,000 shares of $100 par preferred stock and…

A: Stockholder's Equity - Stockholder's Equity includes Common Stock, Preferred Stock, Paid in Capital,…

Q: At the beginning of the current year, Di Na Muli, Inc. was authorized to issue 100,000 shares with a…

A: Here's the breakdown of Di Na Muli, Inc.'s share capital transactions and calculations for…

Q: During the year, BFAR Corp. completed the following transactions related to its treasury shares:…

A: Share premium includes the amount which is computed if the shares are purchased or sold at the…

Q: At the beginning of the current year, Relay Company was organized and authorized to issue 100,000…

A: Shareholders equity is the amount that the owner has invested in the business including retained…

Q: ABC Company issued 50,000 shares for P100 per share. Par value of the shares is P10. During the…

A: Treasury stock: Shares that are bought back by the company from the open market but not retired from…

Q: XYZ Corporation is authorized to issue 150,000 ordinary shares with par of P150. On June 1 eight…

A: Statement of Profit and Loss Account The purpose of preparing the statement of profit and loss to…

Q: On January 1, Vermont Corporation had 39,800 shares of $11 par value common stock issued and…

A: The journal entries are prepared to keep the record of day to day transactions of the business on…

Q: On February 22, Stewart Corporation acquired 2,400 shares of the 85,000 outstanding shares of…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: The charter of Vista West Corporation specifies that it is authorized to issue 204, 000 shares of…

A: When the shares are bought back or repurchased from the existing shareholders from the market they…

Q: At the beginning of the current year, Di Na Muli, Inc. was authorized to issue 100,000 shares with a…

A: It is the amount received in excess of par value per share. It is one of the key component of the…

Q: The corporate charter of Metlock, Corporation allows the issuance of a maximum of 100,000 shares of…

A: Authorized shares are the maximum number of shares a company is authorized to issue. Issued shares…

Q: St. Marie Company is authorized to issue 1,000,000 shares of $5 par value preferred stock, and…

A: Journal entries: Date Account journal Debit $ Credit $ Jan 31 Cash 1,632,000     Common stock…

Q: Assume that on February 12, First Union Co. purchases for cash 6,000 shares of Gilbert Co. stock at…

A: Total deividend received = No. of shares x Dividend per share = 6,000 shares x $0.42 per share =…

Q: St. Marie Company is authorized to issue 1,000,000 shares of $5 par value preferred stock, and…

A: The journal entries are prepared to keep the record of day to day transactions of the business on…

Q: United Resources Company obtained a charter from the state in January of this year. The charter…

A: Balance Sheet :— It is one of the financial statements that shows list of final balances of assets,…

Q: On January 1, Sweeney Corporation had 40,000 shares of $10 par value common stock issued and…

A: We have the following information: On January 1, Sweeney Corporation had 40,000 shares of $10 par…

Q: At the beginning of the current year, Relay Company was organized with authorized capital of 100,000…

A: Share premium is received at the time of issue of shares. When shares are issued at a price more…

Q: Celestial Inc. issued 8,000 shares of its P10 par ordinary shares to a CPA for 600 hrs. of…

A: The company's main source of funding is its share capital. There are two sorts of shares. Ordinary…

Q: Kettle Inc. was organized on January 2, Year 1, with 6,000,000 authorized and outstanding shares of…

A: The treasury stock includes the own shares of the company. The treasury stock has the debit balance.…

Q: Required: Prepare the journal entries to record above transactions.

A: Journal Entry Here to prepare the journal entry to prepare the subscription of shares issued and the…

Q: On February 22, Stewart Corporation acquired 3,300 shares of the 115,000 outstanding shares of…

A: Equity share capital refers to the capital raised by a company by offering shares. The investors who…

Q: On January 1, Vermont Corporation had 43,000 shares of $9 par value common stock issued and…

A: The journal entries are prepared to keep the record of day to day transactions of the business on…

Q: Global Marine obtained a charter from the state in January that authorized 1,000,000 shares of…

A: The stockholders' equity section of a balance sheet represents the amount of capital given to a…

Q: Paydirt Limestone, Incorporated was organized several years ago and was authorized to issue…

A: Date Accounts title and Explanation Debit ($) Credit ($) 1-Mar Treasury stock (2,000 x $2) $4,000…

Q: BFAR Corp. was authorized to issue 200,000 ordinary shares with P50 par value. The company had the…

A: Number of outstanding shares are those shares which are issued and held by the investors. Shares…

Q: On March 5, Jerald Corporation purchased 7,000 shares of its own common stock for $56,000. On July…

A: An audit trail that may be examined during internal or external audits is created when treasury…

Q: On January 23, 15,000 shares of Tolle Company are acquired at a price of $25 per share plus a $145…

A: Given that: Number of shares acquired = 15000 Price per share = $25 per share Brokerage Commission =…

Q: At the beginning of the current year, BFAR Corp. was authorized to issue 100,000 shares with P50 par…

A: The retained earnings increases with revenue and decreases with losses during the period. The…

Q: Upon submitting its corporate charter to the state, Lazer was granted permission to issue 6,000…

A: Stock Split is the increasing the number of shares outstanding by decreasing the par value of…

Q: On February 14, Marine Company reacquired 7,500 shares of its common stock at $30 per share. On…

A: Treasury stock is the reacquired shares by the company. The company has the right to reissue these…

Q: n January 1, Vermont Corporation had 41,000 shares of $12 par value common stock issued and…

A: Journal entry: This is the first step to record accounts. It is written in the same order in which…

Q: nary shares with a par value of P10 per share. During the current year, the entity had the following…

A: Solution: Share premium is the amount which is in excess of par value of ordinary shares. It also…

Q: On June 8, Pharoah Ltd. was incorporated and issued 33,600 common shares for $336,000 On August 19,…

A: In business and accounting, a journal entry serves as documentation of a financial transaction. Each…

Q: On January 1, Vermont Corporation had 49,400 shares of $11 par value common stock issued and…

A: On february 1,vermont purchased treasury stock for $ 24 and on march 1 it sold treasury stock for…

Q: per share. 12. What amount should Bravo report for Ordinary Share Premium as at December 31 this…

A: Share capital refers to that capital that is raised by the issue of shares. The amount which is…

Q: United Resources Company obtained a charter from the state in January of this year. The charter…

A: Balance Sheet :— It is one of the financial statement that shows list of final balances of assets,…

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.