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
A company with 100,000 authorized shares of $4 par common stock issued 50,000 shares at $9. Subsequently, the company declared a 2% stock dividend on a date when the market price was $10 a share. The effect of the declaration and issuance of the stock dividend is to a.decrease retained earnings, increase common stock, and decrease paid-in capital b.increase retained earnings, decrease common stock, and increase paid-in capital c.increase retained earnings, decrease common stock, and decrease paid-in capital d.decrease retained earnings, increase common stock, and increase paid-in capital
ON JANUARY 1, VERMONT CORPORATION HAD 39,600 SHARES OF $10 PAR VALUE COMMON STOCK ISSUED AND OUTSTANDING. ALL 39,600 SHARES HAD BEEN ISSUED IN A PRIOR PERIOD AT $21 PER SHARE. ON FEBRUARY 1, VERMONT PURCHASED 1,020 SHARES OF TREASURY STOCK FOR $28 PER SHARE AND LATER SOLD THE TREASURY SHARES FOR $19 PER SHARE ON MARCH 1. THE JOURNAL ENTRY TO RECORD THE PURCHASE OF THE TREASURY SHARES ON FEBRUARY 1 WOULD INCLUDE A: A. CREDIT TO A GAIN ACCOUNT FOR $7,140 B. CREDIT TO TREASURY STOCK FOR $28,560 C. DEBIT TO TREASURY STOCK FOR $28,560 D. DEBIT TO A LOSS ACCOUNT FOR $7,140 NEED ENTRY IN TABLE FORMAT WHICH STATEMENT BELOW REGARDING A SHARE REPURCHASE IS TRUE? A. THE COMPANY REPURCHASING SHARES IS NOT ENTITLED TO VOTE. B. REPURCHASING SHARES SHRINK A COMPANY'S ASSETS AND EQUITY. C. A SHARE REPURCHASE GROWS A COMPANY'S ASSETS AND EQUITY. D. REPURCHASING SHARES INCREASES RETAINED EARNINGS.
(a) A company has 100,000 shares of $1 par value common stock outstanding with a current market price of $100 per share. If the corporation issues a 2-for-1 stock split, what will be the approximate market price of the stock after the stock split? (b) What does the balance of Retained Earnings at the end of the year represent?
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…
A corporation purchases 9,515 shares of its own $10 par common stock for $18 per share, recording it at cost. What will be the effect on total stockholders' equity? a.decrease by $171,270 b.increase by $171,270 c.decrease by $76,120 d.increase by $76,120
Atkins Company has 20,000 shares of $5 par value common stock outstanding prior to declaring a 10% common stock dividend. The market value of the common stock on the declaration date was $11. Which of the following statements correctly describes the effect of the common stock dividend? A- Total stockholders' equity decreased by $10,000 B- Retained earnings decreased by $22,000 C- Retained earnings decreased by $10,000 D- Total stockholders' equity decreased by $22,000
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
Assume that a company paid $6 per share to re-purchase 1,100 of its $3 par value common stock. The purchase of this treasury stock: Group of answer choices increased total equity by $6,600 increased total equity by $3,300 decreased total equity by $3,300 decreased total equity by $6,600
The YZA Corporation has 100,000 ordinary shares authorized, par value P10. As of the end of reporting period, 60,000 of the shares are outstanding. Required: Compute the earnings per share assuming the company has a profit of: A. P10,000 B. P70,000 C. P90,000 D. P150,000 E. P180,000

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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