Which statement is true concerningretirement of treasury shares. *Retired shares can be reissued at a futuredateShares are retired when reacquiredRetired shares are those that have beenreacquired and cancelledRetired shares remain in the books ofaccounts of an entityThe original issuance price is equal to:Par value onlyRelated Share Premium onlyPar value less Related Share PremiumPar value plus Related Share Premium

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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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Calculate the total payout?
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
In keeping with a modernization of corporate statutes in its home state, UMC Corporation decided in 2018 to discontinue accounting for reacquired shares as treasury stock. Instead, shares repurchased will be viewed as having been retired, reassuming the status of unissued shares. As part of the change, treasury shares held were reclassified as retired stock. At December 31, 2017, UMC’s balance sheet reported the following shareholders’ equity: ($ in millions) Common stock, $1 par $ 300 Paid-in capital—excess of par 1,200 Retained earnings 1,156 Treasury stock (6.0 million shares at cost) (125 ) Total shareholders’ equity $ 2,531 Required:Identify the type of accounting change this decision represents and prepare the journal entry to effect the reclassification of treasury shares as retired shares.
16 - Which of the following accounts is not included in the capital reserves account group? a) 522 Property, Plant and Equipment Revaluation Increases Account B) 521 Stock Cancellation Decisions Account NS) 523 Subsidiaries Revaluation Increases Account D) 549 Special Funds Account TO) 520 Stock Issue Premium Account
An offering of a new issue of shares to existing shareholders who may purchase new shares in proportion to their current ownership position is known as a: Select one: a. Rights issue b. Initial Public Offering (IPO) c. Dividend Reinvestment Plan (DRP) d. Private Placement
Brosnan Co. issues preferred shares where the shareholder has the right to force Brosnan to redeem the shares. Brosnan reports using IFRS. What type of complex financial instrument has Brosnan issued? Question 20 options: a) Convertible preferred shares. b) Retractable preferred shares. c) Mandatorily redeemable preferred shares. d) Perpetual debt.
The following are the balance sheets of Entity A and Entity B as of June 30, 2021: Entity A Current Assets 500 Noncurrent Assets 1,300 Capital Stock - 100 Shares 300 Retained Earnings 800 Current Liabilities 300 Non Current Liabilities 400 Entity B Current Assets 700 Noncurrent Assets 3,000 Capital Stock - 60 shares 600 Retained Earnings 1,400 Current Liabilities 600 Non Current Liabilities 1,100 On July 1, 2021, A acquired all issued shares of B giving in exchange 2.50 A shares for each ordinary shares of B in order for B to obtain public listing. The fair value of each ordinary share of B at July 1, is 40., while the quoted market price of A's ordinary shares is 16. The fair values of A's identifiable net assets at acquisition date are the same of their carrying amounts, except for noncurrent assets whose fair value was 1,500. On the other hand, the fair value of the net assets of B are approximately their carrying amounts. Stockholder's equity in the consolidated balance sheet at…
17. Under IFRS, what is recorded as compensation expense for all employee share-purchase plans? Par value of shares Amount paid by employees Amount of discount Amount transferred to share premium
Stock acquisition (fair value is different from book value) The following financial statement information is for an investor company and an investee company on January 1, 2022. On January 1, 2022, the investor company's common stock had a traded market value of $28 per share, and the investee company's common stock had a traded market value of $21 per share. Book Values Fair Values Investor Investee Investor Investee Receivables & inventories $192,000 $96,000 $180,000 $86,400 384,000 192,000 420,000 240,000 432,000 192,000 480,000 249,600 160,000 153,600 $1,008,000 $480,000 $1,240,000 $729,600 $288,000 $153,600 $320,000 $164,000 40,000 32,000 536,000 275,200 144,000 19,200 $1,008,000 $480,000 $720,000 $326,400 $920,000 $565,600 Land Property & equipment Trademarks & patents Total assets Liabilities Common stock ($1 par) Additional paid-in capital Retained earnings Total liabilities & equity Net assets Assume that the investor company issued 30,000 new shares of the investor company's…
Checl below effected changes in Borner's outstanding shares. Prior to the transactions, Borner's shareholders' equity included the following: Shareholders' Equity Common stock, 100 million shares at $1 par Paid-in capital Retained earnings ($ in millions) $100 300 210 excess of par Required: Assuming that Borner Communications retires shares it reacquires (restores their status to that of authorized but unissued shares), record the appropriate journal entry for each of the following transactions: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (I.e., 10,000,000 should be entered as 10).) 1. On January 7, 2021, Borner reacquired 2 million shares at $5 per share. 2. On August 23, 2021, Borner reacquired 4 million shares at $3.50 per share. 3. On July 25, 2022, Borner sold 3 million common shares at $6 per share. 獲, View transaction Iist View Journal entry worksheet No Date General Journal…
If a company repurchases its own stock, the journal entry to record this transaction will cause 'Total Stockholders' Equity to increase on the Balance Sheet. True False

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Which statement is true concerning retirement of treasury shares. * Retired shares can be reissued at a future date O Shares are retired when reacquired Retired shares are those that have been reacquired and cancelled Retired shares remain in the books of accounts of an entity