How should the excess of subscription price over the value of ordinary shares subscribed be recorded as additional paid-in capital when the share capital is issued as additional paid-in capital when the subscription is received as additional paid-in capital when the subscription is collected as retained earnings when the subscription is received

How should the excess of subscription price over the value of ordinary shares subscribed be recorded as additional paid-in capital when the share capital is issued as additional paid-in capital when the subscription is received as additional paid-in capital when the subscription is collected as retained earnings when the subscription is received

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter19: Corporations: Distributions Not In Complete Liquidation

Section: Chapter Questions

Problem 17DQ

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Sale of treasury shares at less than cost shall be charged to * a. Loss on sale of treasury shares to be reported as other expense b. Retained earnings and then additional paid in capital from treasury share transactions c. Additional paid in capital from treasury share transactions and then retained earnings d. Share premium from original issuance, additional paid in capital from treasury share transactions and then retained earnings
Explain the difference between the proportional methodand the incremental method of allocating the proceeds oflump-sum sales of capital stock.
Subscription receivable and other receivables from sale of shares which are collectible currently shall be presented as Choices; current assets deduction from the related subscribed share capital long-term investment other assets
Subscriptions receivable from sale of shares which are not collectible currently shall be presented asRequired to answer. Single choice. a. current assets b. deduction from the related subscribed share capital in the shareholder's equity section c. long-term investment d. other asset.
The excess of retirement cost over the original issuance price is Debited to Share Premium - Treasury Shares Debited to Retained Earnings Debited to Share Capital Both a and b respectively Which of the following is an appropriate presentation of treasury stock?" As a marketable security As a deduction at cost from total stockholders' equity As a deduction at cost from total contingent liabilities As a deduction at par from total stockholders' equity
Under the cost method, the journal entry to record the repurchase of a treasury share for more than the share's par value will include a debit to O Share Premium-Treasury Shares for the excess of the cost over par value O Accumulated Profits for the excess of the cost over par value O Treasury Shares for the cost of treasury share Share Premium-Treasury Shares for the cost of treasury share
By default, issuance costs of shares is debited to Share Capital Retained Earnings Issuance Cost Share Premium
In applying the treasury shares (i.e., cash in/cash out) method to determine the dilutive effect of shares, options and warrants, the proceeds assumed to be received upon exercise of the options and warrants Select one: a. are used to calculate the number of common shares repurchased at the average market price, when calculating diluted earnings per share. b. are added, net of tax, to the numerator of the calculation for diluted earnings per share. c. are disregarded in the calculation of earnings per share if the exercise price of the options and warrants is less than the ending market price of common shares. d. are deducted from the income available to common share holders. e. None of the above.
Which is a correct statement below? A. Equity is the residual interest in the liabilities of the entity after deducting all of its assets.B. Subscriptions receivable shall preferably be reflected as a deduction from the related subscribed share capital.C. Share premium is also known as capital stock.D. A deficit is a credit balance in retained earnings.
Do you add or subtract total retained earnings with paid in capital when accounting stock?
Which of the following affects the total Shareholders’ Equity? Appropriation of retained earnings Declaration of a scrip dividend Declaration of share split Retirement of treasury shares
When treasury shares are reissued as dividends, what amount shall becharged to accumulated profits? A. Cost of the treasury sharesB. Par value of the treasury sharesC. Fair value of the treasury shares on the date of declarationD. Fair value of the treasury shares on the date of issuance