CyberMax Stockholders' Equity (Before purchase of Treasury Stock) $100.000 Common stock $10 par, 10,000 shares authorized and issues: Retained earnings Total stockholders' equity 25,000 $125,000 On May 1, CyberMax purchases 1,000 of its own shares for $11.50. 1. Prepare the journal entry to record the purchase of the treasury stock. 2. Prepare the stockholders' equity section after the purchase of the treasure stock.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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b. On September 30, Dynasty repurchased and retire 1,000 shares for $9.00 each,
c. What is the balance in the APIC- Retirement account after the September purchase? $
Answer the following related to retired stock.
a. Retiring stock reduces the number of
b. Retired stock is the same as
c. When stocks are purchased and retired common stock and APIC-C/S accounts related to
stocks
and
stock
the shares are
d. If the purchase price exceeds the net amount removed from all capital accounts, the
excess is debited first to
e. If the purchase price exceeds the net amount removed from all capital accounts, the
(not below zero) then to
excess is
f. A company's
the retiring stock.
and
are always reduced by the amount paid for
5. Prepare the following formulas:
a. Basic earnings per share (EPS) =
b. Price Earnings ratio (PE) =
c. Dividend yield =
6. Define Preferred stock preferences:
a. Cumulative dividend
b. Noncumulative dividend
C.
Callable
d. Convertible
e. Nonparticipating dividend
f. Participating dividend
Transcribed Image Text:b. On September 30, Dynasty repurchased and retire 1,000 shares for $9.00 each, c. What is the balance in the APIC- Retirement account after the September purchase? $ Answer the following related to retired stock. a. Retiring stock reduces the number of b. Retired stock is the same as c. When stocks are purchased and retired common stock and APIC-C/S accounts related to stocks and stock the shares are d. If the purchase price exceeds the net amount removed from all capital accounts, the excess is debited first to e. If the purchase price exceeds the net amount removed from all capital accounts, the (not below zero) then to excess is f. A company's the retiring stock. and are always reduced by the amount paid for 5. Prepare the following formulas: a. Basic earnings per share (EPS) = b. Price Earnings ratio (PE) = c. Dividend yield = 6. Define Preferred stock preferences: a. Cumulative dividend b. Noncumulative dividend C. Callable d. Convertible e. Nonparticipating dividend f. Participating dividend
CyberMax
Stockholders' Equity (Before purchase of Treasury Stock)
Common stock $10 par, 10,000 shares authorized and issues:
Retained earnings
Total stockholders' equity
$100.000
25,000
$125,000
On May 1, CyberMax purchases 1,000 of its own shares for $11.50.
1. Prepare the journal entry to record the purchase of the treasury stock.
2. Prepare the stockholders' equity section after the purchase of the treasure stock.
CyberMax
Stockholders' Equity (After purchase of Treasury Stock)
3. Answer the following questions about treasure stock:
Purchase of treasure stock reduces,
a.
and
but does not
reduce
or
4. Dynasty Corporation had stockholders' equity on January 1 as follows: Common Stock,
$5 par value, 1,000,000 shares authorized, 400,000 shares issued; Paid-in Capital in
Excess of Par Value, Common Stock, $800,000; Retained Earnings, $3,600,000.
Prepare journal entries to record the following retirement transactions:
On June 1, Dynasty repurchased and retire 5,000 shares for $4.00 each.
a.
Transcribed Image Text:CyberMax Stockholders' Equity (Before purchase of Treasury Stock) Common stock $10 par, 10,000 shares authorized and issues: Retained earnings Total stockholders' equity $100.000 25,000 $125,000 On May 1, CyberMax purchases 1,000 of its own shares for $11.50. 1. Prepare the journal entry to record the purchase of the treasury stock. 2. Prepare the stockholders' equity section after the purchase of the treasure stock. CyberMax Stockholders' Equity (After purchase of Treasury Stock) 3. Answer the following questions about treasure stock: Purchase of treasure stock reduces, a. and but does not reduce or 4. Dynasty Corporation had stockholders' equity on January 1 as follows: Common Stock, $5 par value, 1,000,000 shares authorized, 400,000 shares issued; Paid-in Capital in Excess of Par Value, Common Stock, $800,000; Retained Earnings, $3,600,000. Prepare journal entries to record the following retirement transactions: On June 1, Dynasty repurchased and retire 5,000 shares for $4.00 each. a.
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