When treasury shares are purchased for more than the par value of the shares and the cost method is used to account for treasury shares, what account(s) should be debited? Group of answer choices share premium for the purchase price. Treasury shares for the purchase price. Treasury shares for the par value and retained earnings for the excess of the purchase price over the par value. Treasury shares for the par value and share premium for the excess of the purchase price over the par value.

When treasury shares are purchased for more than the par value of the shares and the cost method is used to account for treasury shares, what account(s) should be debited? Group of answer choices share premium for the purchase price. Treasury shares for the purchase price. Treasury shares for the par value and retained earnings for the excess of the purchase price over the par value. Treasury shares for the par value and share premium for the excess of the purchase price over the par value.

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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PART A: Common stock has seniority relative to preferred stock. True False PART B: Issuance or flotation costs are the costs investors pay to brokers when they purchase common stock. True False
If all prefers dividned payments that have been missed must be payed before any common stock dividned can be paid, the preffered stock is called ____________ prefferd stock. A. Cumulative B. Participating C. nonparticipating D. Voting E. Duel class
Contributed capital does not include a. Preference shares b. Share premium on preference shares c. Capital accumulated by retention of earnings d. Ordinary shares
Treasury shares reduce the number of shares ________. Group of answer choices issued authorized outstanding available
Explain Resale of Shares.
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Which of the following is true? Select one: a. None of the options. O b. Treasury shares must be sold for more than its cost O c. Treasury shares receive cash dividends O d. Treasury shares are unissued shares of the corporation
The par value of a stock reflects the most recent market price. is immaterial in the majority of cases. O is selected by the SEC. O is indicative of the worth of the stock.
1. Explain the variance sources of financing. 2. What is meant by security financing? 3. What is debt financing? 4. Critically examine the advantages and disadvantages of equity shares. 5. Discuss the features of equity shares. 6. What are the merits of the differed shares? 7. Explain the merits and demerits of preferences shares. 8. List out the types of debentures.
Equity share are known as: Select one: a. None of the options O b. Variable income securities O c. Ordinary share O d. Preference share O e. Ordinary share and variable income securities مشم. . . 92% L (8)
The Share Premium-Ordinary account represents the amount of legal capital. is reported as part of equity on the statement of financial position. is credited when a no-par share does not have a stated value. normally has a debit balance. OOO
How should the excess of the issue price over the par value of the preference shares subscribed be recorded? Select the correct response: as Share Premium when the subscription is collected as a Revenue when the subscription price is collected as Retained Earnings when the subscription is received as Share Premium when the subscription is received