Need help with this accounting questions Delta Corporation issued 25,000 shares of $5 par value commonstock at a market price of $15. As a result of this accounting event,the amount of stockholders' equity would:a) increase by $125,000b) increase by $250,000c) increase by $375,000d) be unaffected

Step 1: Definition of Stockholders' EquityStockholders' equity represents the residual interest in…

Answered: Delta Corporation issued 25,000 shares…

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 5MCQ

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Given the following year-end information, compute Greenwood Corporations basic and diluted earnings per share. Net income, 15,000 The income tax rate, 30% 4,000 shares of common stock were outstanding the entire year. shares of 10%, 50 par (and issuance price) convertible preferred stock were outstanding the entire year. Dividends of 2,500 were declared on this stock during the year. Each share of preferred stock is convertible into 5 shares of common stock.
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).
A company issues 10,000 shares of its own $10 par value common stock to the public for $19 per share. Later, 1, 000 of these shares are bought for $21 per share as treasury stock. Which of the Losses on the resale of these shares would impact reported net income for the year although gains would not The par value method and the cost method have the same total impact on stockholders equity Because this is a stock transaction, retained earnings cannot be affected by a re - issuance of these shares
Company Z has 2.4 million shares of common stock authorized with a par value of $1 and a market price of $58. There are 1.2 million outstanding shares and 0.3 millión shares held in treasury stock Required: a. Prepare the journal entry if the company declares and distributes a 10% stock dividend. b. Show the effect of the 10% stock dividend on assets, liabilities, and stockholders' equity. c. Prepare the journal entry if the company declares and distributes a 100% stock dividend. d. Show the effect of the 100% stock dividend on assets, liabilities, and stockholders' equity. Complete this question by entering your answers in the table below. Required A Required B Required C Required D Prepare the journal entry if the company declares and distributes a 10% stock dividend. (If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field. Enter your answers in dollars and not in millions.) View transaction list Journal entry worksheet Record…
National Supply's shareholders' equity included the following accounts at December 31, 2023: Shareholders' Equity Common stock, 5 million shares at $1 par Paid-in capital-excess of par Retained earnings Required: $ 5,000,000 25,000,000 74,500,000 1. National Supply reacquired shares of its common stock in two separate transactions and later sold shares. Prepare the entries for each of the transactions under each of two separate assumptions: the shares are (a) retired and (b) accounted for as treasury stock. February 15, 2024 Reacquired 160,000 shares at $8 per share. February 17, 2025 Reacquired 160,000 shares at $5.50 per share. November 9, 2026 Sold 95,000 shares at $7 per share (assume FIFO cost). 2. Prepare the shareholders' equity section of National Supply's balance sheet at December 31, 2026, assuming the shares are (a) retired and (b) accounted for as treasury stock. Net income was $13 million in 2024, $14 million in 2025, and $15 million in 2026. No dividends were paid during…
The owners' equity accounts for Vulcano International are shown here: Common stock ($1 par value) Capital surplus Retained earnings Total owners' equity a. Assume the company's stock currently sells for $47 per share and a stock dividend of 8 percent is declared. How many new shares will be distributed? Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32. New shares issued $ 80,000 200,000 660,000 $ 940,000 Show the new balance for each equity account. Note: Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32. Common stock Capital surplus Retained earnings Total owners' equity
On July 1, Davidson Corporation had the following capital structure: Common stock ( $4 par value) Additional paid-in capital Retained earnings. Treasury stock $ 678,000 970,000 730,000 Required: Complete the table below for each of the two following independent cases: Note: Round "Par value per share" amounts to 2 decimal places. Case 1: The board of directors declared and issued a 60 percent stock dividend when the stock was selling at $6 per share. Case 2: The board of directors announced a 6-for-5 stock split. The market price prior to the split was $6 per share. Items Common stock account Par value per share Shares outstanding Additional paid-in capital Retained earnings. Total stockholders' equity Before Dividend and Split $ $ $ 0 4.00 970,000 730,000 After Stock Dividend
Assume that a company paid $6 per share to purchase 1,100 shares of its $3 par common stock as treasury stock. The purchase of treasury stock A. increased total equity by $3,300. B. decreased total equity by $3,300. C. decreased total equity by $6,600. D. increased total equity by $6,600.
14)If Mande Corp issues 7,000 shares of $30 par value common stock for $240,000, the account a)Common Stock will be debited for $210,000. b)Cash will be debited for $210,000. c)Paid-in Capital in Excess of Par Value will be credited for $180,000. d)Paid-in Capital in Excess of Par Value will be credited for $30,000.
(19) Miller Corporation issued 7,000 shares of its $5 par value common stock in payments for attorney services billed at $70,000. Miller Corporation's stock has been actively trading at $10 per share. The journal entry for this transaction would include a credit to: A. Legal expenses for $70,000 B. Common stock for $70,000 C. Paid - in Capital in Excess of Par-Common for $70,000. D. Paid - in Capital in Excess of Par-Common for $35,000.
On July 1, Davidson Corporation had the following capital structure: Common stock ($3 par value) Additional paid-in capital Retained earnings Treasury stock $ 642,000 1,080,000 770,000 Required: Complete the table below for each of the two following independent cases: Note: Round "Par value per share" amounts to 2 decimal places. Case 1: The board of directors declared and issued a 40 percent stock dividend when the stock was selling at $5 per share. Case 2: The board of directors announced a 6-for-5 stock split. The market price prior to the split was $5 per share. Items Common stock account Par value per share Shares outstanding Additional paid-in capital Retained earnings Total stockholders' equity Before Dividend and Split $ $ $ 0 3.00 1,080,000 770,000 After Stock Dividend
On July 1, Davidson Corporation had the following capital structure: Common stock ( $3 par value) Additional paid-in capital Retained earnings Treasury stock Required: $ 600,000 1,030,000 780,000 Complete the table below for each of the two following independent cases: Note: Round "Par value per share" amounts to 2 decimal places. Case 1: The board of directors declared and issued a 40 percent stock dividend when the stock was selling at $5 per share. Case 2: The board of directors announced a 6-for-5 stock split. The market price prior to the split was $5 per share. > Answer is complete but not entirely correct. Items Before Dividend After Stock Dividend After Stock Split and Split Common stock account $ 600,000 $ 600,000 $ Par value per share $ 3.00 $ 3.00 $ 0.50 x Shares outstanding 0 ☑ 0 ☑ Additional paid-in capital Retained earnings Total stockholders' equity $ SASS $ 1,030,000 $ 1,030,000 $ 1,030,000 $ 780,000 $ 780,000 $ 780,000 0 $ 0 $ 0 ☑

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Delta Corporation issued 25,000 shares of $5 par value common stock at a market price of $15. As a result of this accounting event, the amount of stockholders' equity would: a) increase by $125,000 b) increase by $250,000 c) increase by $375,000 d) be unaffected