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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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.
12. 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.
What does a violation of preference shares' restrictive covenants usually permit preference shareholders to do to correct the violation? O Sell their shares. O Force the retirement of the preference shares at or above its par value. O Force the company into bankruptcy. O Force a company to repurchase the shares at a stated amount below par.
If a company resells treasury stock at a loss, and that amount exceeds any balance in the treasury stock APIC account, the remaining loss is debited to: Group of answer choices Additional Paid in Capital (APIC) -Common Stock Treasury stock cannot be sold at a loss Retained earnings Loss on sale of treasury stock
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?
Which of the following statements is false? A The declaration of a dividend may not result in a current liability. B A dividend payable in shares of the issuing company's stock is not reported as a current liability. C Undeclared dividends in arrears on cumulative preferred stock are not recognized as a liability. D Interest and dividends accrue as a liability as time passes.
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Which of the following statements is incorrect? Issued shares of stocks include those that have been at one time been sold to the public and which have been subsequently retired. If an entity’s capital stock is retired, the Share Capital account is reduced by its par value, the number of shares is reduced by the stock retired and the treasury stock is credited at cost. Treasury shares may be reissued as dividends, in which case the cost of the shares should be charged to Retained Earnings. Though may be used in computing for the Share Capital, stated value is not similar to par value of stock.
How will retained earnings be affected by purchase of treasury shares and subsequent sale of treasury shares at more than acquisition cost? Acquisition of TS Sale of TS a. no effect increase b. Increase no effect c. no effect no effect d. Increase decrease
1. What is the accounting for treasury share transactions? a. On repurchase or re-issuance of previously purchased own shares, no gain or loss is recognized. b. Treasury shares are accounted for as financial assets. c. On re-issuance of treasury shares, a gain or loss is recognized equal to the difference between the previous repurchase price and the re-issuance price. d. On repurchase of treasury shares, a gain or loss is recognized equal to the difference between the amount at which the shares were issued and the repurchase price for the shares. . 2. If a no-par value share is issued... a. The value of each share is automatically ₱5. b. The corporation is automatically in violation of its state charter. c. There is no legal capital. d. The entire proceeds is considered as legal capital. . 3 Which of the following statements relating to bonds is incorrect? a. None of the choices b. A bond’s face value is the amount the issuer must pay…
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 redemption of a shareholder's stock for cash that is treated as a sale or exchange of the shares is subject to an excise tax of one percent levied on stock repurchases of covered corporations. True or False True False

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