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

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A: Here's how this is generally accounted for:Capitalization of Transaction Costs: When a business…

Q: Share dividends distributed shall be reported as O a note to financial statement O a reduction in…

A: A dividend payment that is given in the form of shares rather than cash is referred to as a stock…

Q: Under the cost method, the journal entry to record the repurchase of a treasury share for more than…

A: Shares mean the small portion of ownership that is issued by the company. When the investor's…

Q: The journal entry to record the declaration of a large bonus issue includes: A. A debit to retained…

A: The Declaration of bonus issue is the declaration of the stock dividend which means the issuance of…

Q: Increases in the fair value of unexercised share options after the vesting period shall be…

A: Share options are the rights provided to the employees for purchasing or acquiring shares of the…

Q: Under IFRS, the amount of capital received in excess of par value would be credited to: a.…

A:

Q: Current assets: Cash and marketable securities Accounts receivable. Inventory Total Assets Fixed…

A: Cash flow statement is a statement that records the inflow or outflow of cash in the operations of…

Q: Which of the following statements is not true of the fair-value method of accounting for marketable…

A: Fair value: Fair value is the price at which, both seller and buyer agree to exchange the asset. So,…

Q: When a small, share capital dividend is declared, Retained Earnings is debited for the a. par value…

A: when small share capital dividend is declared, it is recorded at FV of stock as at the declaration…

Q: What is the accounting treatment of the direct issue costs of shares of stocks? Debit to the…

A:

Q: 1. Preparee a simplified balance sheet with three sub-headings in the assets and three subheadings…

A: The balance sheet is one of the important financial statements that have to be prepared by the…

Q: t the date of financial statements, ordinary shares issued would exceed ordinary shares outstanding…

A: Solution Note Dear student as per the Q&A guideline we are required to answer the first question…

Q: Retained earnings must be appropriated if there are treasury shares due to: A. contractual…

A: Appropriation of retained earnings is created by the company for a specific purpose voluntarily. It…

Q: Unrealized holding gains and losses on debt securities classified as available for sale would have…

A: Other Comprehensive Income refers to items of income and expenses that are not recognized as a part…

Q: Which of the following items is not presented under the equity section of the statement of financial…

A: The equity section contains the information that records about resources that owners invested and to…

Q: Debt Investments Dividend Revenue Fair Value Adjustment-Available-for-Sale Fair Value…

A: Journal entries refers to thr process of noting all the daily activities of transactions of a…

Q: ch of the following is not correct relative to an appropriation of Retained Earnings? a. Retaine

A: The amount of profit after paying all the costs incomes taxes and dividends to shareholders is known…

Q: When common stock is issued at an amount greater than par value, the difference between the par…

A: When common stock is issued for more than its par value, the difference between par value and…

Q: Dividend revenue is recognized for trading securities and available for sale securities even if held…

A: Solution Concept Dividend is recognized in income statement for trading securities if they are held…

Q: The ledger of INDENTATION CUT Co. in 20x1 includes the following: Share capital Share premium…

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Q: A share capital entitled to receive dividends in arrears *   Choices; Treasury share capital…

A: Treasury share capital are those shares which have been bought back by the company for cancellation.

Q: An unrealized holding gain or loss on a company’s equity investment at fair value through other…

A: Solution: Unrealized holding gain or loss on a company’s equity investment is just the virtual…

Q: Accounting type Question: Bonus shares cannot be issued out of: A. Profit and Loss a/c B. Capital…

A: Bonus shares are issued by cashing in on the free reserves of the company. The assets of a company…

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A: Cullumber Associates hold common stock of 3 companies which are held as investments. IFRS 9 pertains…

Q: The amount attributable to every share of ordinary share capital outstanding during the period.  a.…

A: The company can raise funds by using different methods. Some of them are, by way of issuing common…

Q: Treasury shares were acquired for cash at a price above par value. The treasury shares were…

A: The treasury stock includes the own shares purchased by company from the shareholders.

Q: When the market value of a company’s portfolio of available-for-sale securities is lower than its…

A: Valuation allowance account - Contra asset to record "temporary" market changes in FV for HFT/AFS…

Q: If a company resells treasury stock at a loss, and that amount exceeds any balance in the treasury…

A: Answer.  Treasury stock is recorded at cost.  If traesury stock is purchased at loos then additional…

Q: I. Contractual appropriation J. Share appreciation right K. Quasi-reorganization L Share dividends…

A: The question is related retun on capital. Capital dividend or liquidating dividends are return on…

Q: Determine if this shall result in recognition of liabilities 7. declaration of share dividends on…

A: The share dividend is a method of capitalizing on retained earnings. Generally, the large share…

Q: 2. The following are the common sources of share premium, except Group of answer choices a. Excess…

A: Share Premium is the amount received that is in excess of the par value of the stock. Sometimes it…

Q: 21. What does IAS 32 provide as regards to the gain from sale of treasury shares? Group of answer…

A: As per IAS 32, when the treasury stock is bought or sold, an entity should not record any gain or…

Q: when shares are issued at a premium the value of the share premium should be :

A: Answer:   Option c.

Q: Stock appreciation right would normally be settled through

A: Stock appreciation right is the payment made to the workers of a company in respect of appreciation…

Q: e between the carrying value of the investment and its related cumulative unrealized gain or…

A: Investment is the amount which is spent by the producer for the purchase of those goods which…

Q: 1. A company declared a cash dividend on its ordinary shares in December 2020 payable in January…

A: Hi student Since there are multiple questions, we will answer only first question.  Dividend is the…

Q: Indicate the effect of each of the following transactions on total  equity by selecting the…

A: Total equity is the amount that represents the shareholding of the business owners. It includes…

Q: How should a "gain" from the sale of treasury stock be reflected when using the cost method of…

A: ANSWER   It will be recorded as a paid-in capital from treasury stock. Although the company made a…