Concept Introduction:
Shares: The amount of capital divided into small portions which are sold to the investors is called shares.
Requirement 1:
How many classes of stock McDonald has issued?
Concept Introduction:
Par Value: The original value of shares prescribed on the share certificate is called a par value of the share.
Authorized Shares: The number of shares authorized by the Securities and Exchange Commission to a company is called Authorized shares.
Issued Shares: The number of shares sold by a company from the authorized shares is termed as issued shares.
Requirement 2:
Identify the par values, number of authorized shares, and number of issued shares of the classes of stock.
Concept Introduction:
- Avoiding takeover of the company.
- To give compensation to their employees in terms of shares.
- To show strong status for their shares in the market.
Requirement 3:
What is the total amount of cash paid in 2016 to purchase treasury stock?
Concept Introduction:
Cash Dividends: The amount of cash paid to the shareholders of a company as reward for their investments is termed as cash dividends.
Requirement 4:
What amount did McDonald's pay out in common stock cash dividends for 2016?
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Chapter 13 Solutions
FUNDAMENTAL ACCOUNTING PRINCIPLES
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