This is talking about equity, what is the slide talking about? I don't understand. Issue of sharesForfeiture and Reissue of Shares►If a shareholder fails to make the required paymentdue, the amount already paid on the shares is notrefundable, then it is considered as forfeiture ofsharesThe shares forfeited may be reissued▶ The forfeited shares may be reissued at a minimumprice equivalent to the unpaid amount. Any amountreceived in excess of the unpaid amount will becredited to the share capital account

Yes, the slide is talking about issue of equity shares, its forfeiture and reissue.The slide is…

Answered: Issue of shares Forfeiture and Reissue…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter15: Shareholders’ Equity: Capital Contributions And Distributions

Section: Chapter Questions

Problem 10Q

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Similar questions

When a company requests a further payment from shareholders of the unpaid amounts on their shares, it: Select one: A. makes a call on the shares. B. converts the shares into debentures. C. forfeits the shares. D. makes a further allotment of those shares.
Which statement is incorrect regarding equity-settled share-based payment transactions? A. the issuance of shares to employees with say, a two year vesting period is considered to relate to services over the vesting period. B. the issuance of shares or rights to shares requires an increase in a component of equity C. the fair value of a share-based payment transaction is determined at the date of exercise. D. the issuance of fully vested shares, or rights to shares, is presumed to relate to past service, requiring the full amount of the grant-date fair value to be expensed immediately. Provided the specified vesting conditions, if any, are met, share-based payment arrangement is an agreement between the entity and another party that entities the other party to receive A. equity instruments of the entity or another group entity B. none of the choices C. receives goods or services from the supplier of those goods or services in a…
When a company retires its own common shares, the company must a. decrease the common share account balances by the original issue price. b. record a gain or loss depending on the difference between original selling price and repurchase cost. c. get the approval of the government to do so. d. issue a different class of shares to the former shareholders.
If a company chooses to purchase its own shares and then either (1) retires the repurchased shares and issues additional shares, or (2) resells the repurchased shares, can a gain or loss be recognized by the company? Why or why not?
None
Explain thoroughly why it is the answer.
S1 The premium on the shares subscribed shall be recorded at the date of issuance of share certificate. S2 Treasury share are stated at acquisition cost and are treated as deduction from shareholders equity. a. Both statements are true b. Both statements are false c. One statement is true, and the other one is false S1 Treasury shares are not entitled to receive dividend. S2 Treasury shares may either be ordinary or preference. a. Both statements are true b. Both statements are false c. One statement is true, and the other one is false
What is redeemable shares? What is the dfferences between ordinary shares? What is share redemption. What is buy back?
Unless stated otherwise in the prospectus, which of the following accrue to holders of common stock? Check All That Apply The right to vote on members for the Board of Directors. The right to share proportionally in dividends paid. An ownership stake in the company. The right to receive any back dividends that were missed if the company suspends its dividend and then decides to restart paying dividends. First priority on assets following a liquidation and distribution of the firm's assets.
A company declares and distributes a 30% common stock dividend to common stockholders. By how much will the retained earnings balance be affected as a result of this transaction (note: consider any effects associated with closing entries)? Select one: O a. Retained earnings would not be reduced as a result of this transaction O b. Market value of the shares issued Book value of the shares issued Od. Minimum legal requirement O e. Par value of the shares issued Clear my choice
Statement 1: Treasury shares are a company’s own shares that have been reacquired and retired. Statement 2: The cost method records all transactions in treasury shares at their cost and reports the treasury shares as a deduction from ordinary shares. a. Only statement 1 is correct b. Only statement 2 is correct c. Both statements are correct d. Both statements are incorrect.
What is the paragraph means: The payment for the redemption may be made:  Out of proceeds of fresh issue of new shares  Out of company’s distributable profits  Out of capital, following procedures prescribed in the new Companies Ordinance (New Co. Ord.)

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