I need this question answer general Accounting ABC Corporation decides to repurchase 2,500 shares of its$5 par value common stock at $8 per share. The companyhad originally issued these shares at $10 per share. What isthe impact of this treasury stock purchase on totalstockholders' equity?a. decrease by $12,500b. decrease by $20,000c. decrease by $25,000d. decrease by $15,000

Calculation of Treasury Stock CostTreasury Stock Cost = No. of shares Repurchased x Repurchase Price…

Answered: ABC Corporation decides to repurchase…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 12MCQ

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Alert Companys shareholders equity prior to any of the following events is as follows: The company is considering the following alternative items: 1. An 8% stock dividend on the common stock when it is selling for 30 per share. 2. A 30% stock dividend on the common stock when it is selling for 32 per share. 3. A special stock dividend to common shareholders consisting of 1 share of preferred stock for every 100 shares of common stock. The preferred stock and common stock are selling for 123 and 31 per share, respectively. 4. A 2-for-1 stock split on the common stock, reducing the par value to 5 per share (assume the same date for declaration and issuance). The market price is 30 per share on the common stock. 5. A property dividend to common shareholders consisting of 100 bonds issued by West Company. These bonds are carried on the Alert Company books as an available-for sale investment at a fair value of 48,000 (which is also its cost); it has a current value of 54,000. 6. A cash dividend, consisting of a normal dividend and a liquidating dividend, on both the preferred and the common stock. The 10% preferred dividend includes a 2% liquidating dividend, and the 2.30 per share common dividend includes a 0.30 per share liquidating dividend (separate liquidating dividend contra accounts should be used). Required: For each of the preceding alternative items: 1. Record (a) the journal entry at the date of declaration and (b) the journal entry at the date of issuance. 2. Compute the balances in the shareholders equity accounts immediately after the issuance (any gains or losses are to be reflected in the retained earnings balance; ignore income taxes).
ABC Corp. issued new shares with a par value of P1,000, issue price of P1,200 and net proceeds of 1,050. Shareholders expect dividends of P80 per share for the first year and a growth rate of 4%. What would be the cost of retained earnings if it was used as a financing source instead of ordinary shares? *a. 11.924%b. 10.667%c. 11.619%d. 12.000%
Hi, If a company has 32,000 common stock shares outstanding $10 par value, then purchases 2,300 shares of treasury stock at $25 per share. How would this be jouralized? Also, after those transaction the same company declared a $0.10 per share cash dividend on the common stock outstanding. How would this be jouralized?
1. The owners' equity accounts for Investo Unlimited are shown here: Common stock ($.75 par value) Capital surplus Retained earnings Total owners' equity $50,000 $215,000 $642,700 $907,700 a. b. How many new shares will be distributed if the company's stock currently sells for $50 per share and a 15 percent stock dividend is declared? Show how the equity accounts would change. How would the accounts change if the company declared a 35 percent stock dividend?
3. Emerald Co. has 50,000 shares at $12 par common stock outstanding. If the compan) decides to buy 20% of its shares for $15 per share, the total stockholders' equity will. a. increase by $600,000 b. increase by $750,000 c. decrease by $150,000 d. decrease by $120,000 of nd and ts fnc equity st tumo
the owners’ equity accounts for Quadrangle International are shown here: Common stock ($1 par value) 30,000 Capital surplus 285,000Retained earnings 649180 Total owners’ equity 964180 a. If Quadrangle stock currently sells for $30 per share and a 10 percent stock dividend is declared, how many new shares will be distributed? Show how the equity accounts would change. b. If Quadrangle declared a 25 percent stock dividend, how would the accounts change?
CBA Inc. has 400,000 shares outstanding with a $5 par value. The shares were issued for $12. The stock is currently selling for $34. CBA has $5.000.000 in retained earnings and has declared a stock dividend that will increase the number of outstanding shares by 6%. What will be the "capital in excess of par account after the stock dividend? Mumple Choice O O $7.685.000 $2.685.000 $3,496,000 $2.385,000
On May 1, Z Company repurchased (bought back) 12,000 shares of its own $2 par common stock as treasury stock at a cost of $10 per share. On September 1, Z Company resold 5,000 shares of its treasury stock when the market prices was $15 per share. What is the ending balance in Treasury Stock? What is the ending balance in in the Paid-In Treasury Stock?
The owners’ equity accounts for Freya International are shown here: Common stock ($.60 par value) $ 30,000 Capital surplus 310,000 Retained earnings 688,120 Total owners’ equity $ 1,028,120 a-1 If Freya stock currently sells for $20 per share and a 20 percent stock dividend is declared, how many new shares will be distributed? (Do not round intermediate calculations.) New shares issued a-2 Show how the equity accounts would change. (Do not round intermediate calculations.) Common stock $ Capital surplus Retained earnings Total owners’ equity $ b-1 If instead Freya declared a 25 percent stock dividend, how many new shares will be distributed? (Do not round intermediate calculations.) New shares issued b-2 Show how the equity accounts would change. (Do not round intermediate calculations.)…
The owner equity accounts for Masterson International are shown here Common stock (of $1 par value)- $45,000 Capital surplus- -$157,000 Retained earnings- $603,000 Total owners’ equity- $805,000 If the company’s stock currently sells for $42 per share and a 10 percent stock dividend is declared, how many new shares will be distributed? Show how the equity accounts would change.
Please Solve With Explanation and Do not give image format
The owners’ equity accounts for Vulcano International are shown here: Common stock ($.50 par value) $ 20,000 Capital surplus 210,000 Retained earnings 587,300 Total owners’ equity $ 817,300 a-1. If the company declares a 4-for-1 stock split, how many shares are outstanding now? (Do not round intermediate calculations.) a-2. What is the new par value per share? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) b-1. If the company declares a 1-for-5 reverse stock split, how many shares are outstanding now? (Do not round intermediate calculations.) b-2. What is the new par value per share? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

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