1) Introduction: Classes of shares: • Shares provide partial ownership or a “share” of a corporation. There are two primary classes of shares – Equity Shares and Preference Shares. • Equity shares are the class of shares which carry voting rights and equity share holders are the true owners of the company as in the event of dissolution, equity shareholders get last preference in clearing the amounts invested and there is no guarantee of profits / dividend on an annual basis. • Preference shares are the class of shares which do not carry voting rights and in the event of dissolution, preference shareholders get first preference in clearing the amounts invested and there is usually guarantee of profits / dividend on an annual basis.Convertible Preference shares are preference shares that carry the option to be converted into equity shares after certain duration. Which classes of shares are outstanding

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Answer 1

Question

Chapter 13, Problem P13.42BPGB

To determine

1)

Introduction:

Classes of shares:

• Shares provide partial ownership or a “share” of a corporation. There are two primary classes of shares – Equity Shares and Preference Shares.

• Equity shares are the class of shares which carry voting rights and equity share holders are the true owners of the company as in the event of dissolution, equity shareholders get last preference in clearing the amounts invested and there is no guarantee of profits / dividend on an annual basis.

• Preference shares are the class of shares which do not carry voting rights and in the event of dissolution, preference shareholders get first preference in clearing the amounts invested and there is usually guarantee of profits / dividend on an annual basis.Convertible Preference shares are preference shares that carry the option to be converted into equity shares after certain duration.

Which classes of shares are outstanding

To determine

2)

Introduction:

Calculation of Par value of Shares

• Shares provide partial ownership or a “share” of a corporation. There are two primary classes of shares – Equity Shares and Preference Shares.

• Preference shares are the class of shares which do not carry voting rights and in the event of dissolution, preference shareholders get first preference in clearing the amounts invested and there is usually guarantee of profits / dividend on an annual basis.Convertible Preference shares are preference shares that carry the option to be converted into equity shares after certain duration.

• Par value of shares refers to the face value or book value of the shares issued. The difference between issue price and par value is the discount or premium on shares.

$Par Value of Shares = Paid in Capital / Number of Shares outstanding$

To Calculate:

Par Value of Preferred Shares

To determine

3)

Introduction:

Journal Entries

Journal entries are the first step in recording financial transactions and preparation of financial statements.

These represent the impact of the financial transaction and demonstrate the effect on the accounts impacted in the form of debits and credits.

Assets and expenses have debit balances and Liabilities and Incomes have credit balances and according to the business transaction, the accounts are appropriately debited will be credited by credited to reflect the effect of business transactions and events.

To Prepare:

Summary Journal entries to record issuance of all stock.

To determine

4)

Introduction:

Journal Entries

Journal entries are the first step in recording financial transactions and preparation of financial statements.

These represent the impact of the financial transaction and demonstrate the effect on the accounts impacted in the form of debits and credits.

Assets and expenses have debit balances and Liabilities and Incomes have credit balances and according to the business transaction, the accounts are appropriately debited will be credited by credited to reflect the effect of business transactions and events.

To Prepare:

Journal Entries for Issuance and payment of Dividend

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Answer 2

Question

Chapter 13, Problem P13.42BPGB

To determine

1)

Introduction:

Classes of shares:

• Shares provide partial ownership or a “share” of a corporation. There are two primary classes of shares – Equity Shares and Preference Shares.

• Equity shares are the class of shares which carry voting rights and equity share holders are the true owners of the company as in the event of dissolution, equity shareholders get last preference in clearing the amounts invested and there is no guarantee of profits / dividend on an annual basis.

• Preference shares are the class of shares which do not carry voting rights and in the event of dissolution, preference shareholders get first preference in clearing the amounts invested and there is usually guarantee of profits / dividend on an annual basis.Convertible Preference shares are preference shares that carry the option to be converted into equity shares after certain duration.

Which classes of shares are outstanding

To determine

2)

Introduction:

Calculation of Par value of Shares

• Shares provide partial ownership or a “share” of a corporation. There are two primary classes of shares – Equity Shares and Preference Shares.

• Preference shares are the class of shares which do not carry voting rights and in the event of dissolution, preference shareholders get first preference in clearing the amounts invested and there is usually guarantee of profits / dividend on an annual basis.Convertible Preference shares are preference shares that carry the option to be converted into equity shares after certain duration.

• Par value of shares refers to the face value or book value of the shares issued. The difference between issue price and par value is the discount or premium on shares.

$Par Value of Shares = Paid in Capital / Number of Shares outstanding$

To Calculate:

Par Value of Preferred Shares

To determine

3)

Introduction:

Journal Entries

Journal entries are the first step in recording financial transactions and preparation of financial statements.

These represent the impact of the financial transaction and demonstrate the effect on the accounts impacted in the form of debits and credits.

Assets and expenses have debit balances and Liabilities and Incomes have credit balances and according to the business transaction, the accounts are appropriately debited will be credited by credited to reflect the effect of business transactions and events.

To Prepare:

Summary Journal entries to record issuance of all stock.

To determine

4)

Introduction:

Journal Entries

Journal entries are the first step in recording financial transactions and preparation of financial statements.

These represent the impact of the financial transaction and demonstrate the effect on the accounts impacted in the form of debits and credits.

Assets and expenses have debit balances and Liabilities and Incomes have credit balances and according to the business transaction, the accounts are appropriately debited will be credited by credited to reflect the effect of business transactions and events.

To Prepare:

Journal Entries for Issuance and payment of Dividend

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 13, Problem P13.42BPGB

To determine

1)

Introduction:

Classes of shares:

• Shares provide partial ownership or a “share” of a corporation. There are two primary classes of shares – Equity Shares and Preference Shares.

• Equity shares are the class of shares which carry voting rights and equity share holders are the true owners of the company as in the event of dissolution, equity shareholders get last preference in clearing the amounts invested and there is no guarantee of profits / dividend on an annual basis.

• Preference shares are the class of shares which do not carry voting rights and in the event of dissolution, preference shareholders get first preference in clearing the amounts invested and there is usually guarantee of profits / dividend on an annual basis.Convertible Preference shares are preference shares that carry the option to be converted into equity shares after certain duration.

Which classes of shares are outstanding

To determine

2)

Introduction:

Calculation of Par value of Shares

• Shares provide partial ownership or a “share” of a corporation. There are two primary classes of shares – Equity Shares and Preference Shares.

• Preference shares are the class of shares which do not carry voting rights and in the event of dissolution, preference shareholders get first preference in clearing the amounts invested and there is usually guarantee of profits / dividend on an annual basis.Convertible Preference shares are preference shares that carry the option to be converted into equity shares after certain duration.

• Par value of shares refers to the face value or book value of the shares issued. The difference between issue price and par value is the discount or premium on shares.

$Par Value of Shares = Paid in Capital / Number of Shares outstanding$

To Calculate:

Par Value of Preferred Shares

To determine

3)

Introduction:

Journal Entries

Journal entries are the first step in recording financial transactions and preparation of financial statements.

These represent the impact of the financial transaction and demonstrate the effect on the accounts impacted in the form of debits and credits.

Assets and expenses have debit balances and Liabilities and Incomes have credit balances and according to the business transaction, the accounts are appropriately debited will be credited by credited to reflect the effect of business transactions and events.

To Prepare:

Summary Journal entries to record issuance of all stock.

To determine

4)

Introduction:

Journal Entries

Journal entries are the first step in recording financial transactions and preparation of financial statements.

These represent the impact of the financial transaction and demonstrate the effect on the accounts impacted in the form of debits and credits.

Assets and expenses have debit balances and Liabilities and Incomes have credit balances and according to the business transaction, the accounts are appropriately debited will be credited by credited to reflect the effect of business transactions and events.

To Prepare:

Journal Entries for Issuance and payment of Dividend

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 13, Problem P13.42BPGB

To determine

1)

Introduction:

Classes of shares:

• Shares provide partial ownership or a “share” of a corporation. There are two primary classes of shares – Equity Shares and Preference Shares.

• Equity shares are the class of shares which carry voting rights and equity share holders are the true owners of the company as in the event of dissolution, equity shareholders get last preference in clearing the amounts invested and there is no guarantee of profits / dividend on an annual basis.

• Preference shares are the class of shares which do not carry voting rights and in the event of dissolution, preference shareholders get first preference in clearing the amounts invested and there is usually guarantee of profits / dividend on an annual basis.Convertible Preference shares are preference shares that carry the option to be converted into equity shares after certain duration.

Which classes of shares are outstanding

To determine

2)

Introduction:

Calculation of Par value of Shares

• Shares provide partial ownership or a “share” of a corporation. There are two primary classes of shares – Equity Shares and Preference Shares.

• Preference shares are the class of shares which do not carry voting rights and in the event of dissolution, preference shareholders get first preference in clearing the amounts invested and there is usually guarantee of profits / dividend on an annual basis.Convertible Preference shares are preference shares that carry the option to be converted into equity shares after certain duration.

• Par value of shares refers to the face value or book value of the shares issued. The difference between issue price and par value is the discount or premium on shares.

$Par Value of Shares = Paid in Capital / Number of Shares outstanding$

To Calculate:

Par Value of Preferred Shares

To determine

3)

Introduction:

Journal Entries

Journal entries are the first step in recording financial transactions and preparation of financial statements.

These represent the impact of the financial transaction and demonstrate the effect on the accounts impacted in the form of debits and credits.

Assets and expenses have debit balances and Liabilities and Incomes have credit balances and according to the business transaction, the accounts are appropriately debited will be credited by credited to reflect the effect of business transactions and events.

To Prepare:

Summary Journal entries to record issuance of all stock.

To determine

4)

Introduction:

Journal Entries

Journal entries are the first step in recording financial transactions and preparation of financial statements.

These represent the impact of the financial transaction and demonstrate the effect on the accounts impacted in the form of debits and credits.

Assets and expenses have debit balances and Liabilities and Incomes have credit balances and according to the business transaction, the accounts are appropriately debited will be credited by credited to reflect the effect of business transactions and events.

To Prepare:

Journal Entries for Issuance and payment of Dividend

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 13, Problem P13.42BPGB

To determine

1)

Introduction:

Classes of shares:

• Shares provide partial ownership or a “share” of a corporation. There are two primary classes of shares – Equity Shares and Preference Shares.

• Equity shares are the class of shares which carry voting rights and equity share holders are the true owners of the company as in the event of dissolution, equity shareholders get last preference in clearing the amounts invested and there is no guarantee of profits / dividend on an annual basis.

• Preference shares are the class of shares which do not carry voting rights and in the event of dissolution, preference shareholders get first preference in clearing the amounts invested and there is usually guarantee of profits / dividend on an annual basis.Convertible Preference shares are preference shares that carry the option to be converted into equity shares after certain duration.

Which classes of shares are outstanding

To determine

2)

Introduction:

Calculation of Par value of Shares

• Shares provide partial ownership or a “share” of a corporation. There are two primary classes of shares – Equity Shares and Preference Shares.

• Preference shares are the class of shares which do not carry voting rights and in the event of dissolution, preference shareholders get first preference in clearing the amounts invested and there is usually guarantee of profits / dividend on an annual basis.Convertible Preference shares are preference shares that carry the option to be converted into equity shares after certain duration.

• Par value of shares refers to the face value or book value of the shares issued. The difference between issue price and par value is the discount or premium on shares.

$Par Value of Shares = Paid in Capital / Number of Shares outstanding$

To Calculate:

Par Value of Preferred Shares

To determine

3)

Introduction:

Journal Entries

Journal entries are the first step in recording financial transactions and preparation of financial statements.

These represent the impact of the financial transaction and demonstrate the effect on the accounts impacted in the form of debits and credits.

Assets and expenses have debit balances and Liabilities and Incomes have credit balances and according to the business transaction, the accounts are appropriately debited will be credited by credited to reflect the effect of business transactions and events.

To Prepare:

Summary Journal entries to record issuance of all stock.

To determine

4)

Introduction:

Journal Entries

Journal entries are the first step in recording financial transactions and preparation of financial statements.

These represent the impact of the financial transaction and demonstrate the effect on the accounts impacted in the form of debits and credits.

Assets and expenses have debit balances and Liabilities and Incomes have credit balances and according to the business transaction, the accounts are appropriately debited will be credited by credited to reflect the effect of business transactions and events.

To Prepare:

Journal Entries for Issuance and payment of Dividend

Answer 6

Chapter 13, Problem P13.42BPGB

To determine

1)

Introduction:

Classes of shares:

• Shares provide partial ownership or a “share” of a corporation. There are two primary classes of shares – Equity Shares and Preference Shares.

• Equity shares are the class of shares which carry voting rights and equity share holders are the true owners of the company as in the event of dissolution, equity shareholders get last preference in clearing the amounts invested and there is no guarantee of profits / dividend on an annual basis.

• Preference shares are the class of shares which do not carry voting rights and in the event of dissolution, preference shareholders get first preference in clearing the amounts invested and there is usually guarantee of profits / dividend on an annual basis.Convertible Preference shares are preference shares that carry the option to be converted into equity shares after certain duration.

Which classes of shares are outstanding

Answer 7

Chapter 13, Problem P13.42BPGB

To determine

1)

Introduction:

Classes of shares:

• Shares provide partial ownership or a “share” of a corporation. There are two primary classes of shares – Equity Shares and Preference Shares.

• Equity shares are the class of shares which carry voting rights and equity share holders are the true owners of the company as in the event of dissolution, equity shareholders get last preference in clearing the amounts invested and there is no guarantee of profits / dividend on an annual basis.

• Preference shares are the class of shares which do not carry voting rights and in the event of dissolution, preference shareholders get first preference in clearing the amounts invested and there is usually guarantee of profits / dividend on an annual basis.Convertible Preference shares are preference shares that carry the option to be converted into equity shares after certain duration.

Which classes of shares are outstanding

Answer 8

To determine

2)

Introduction:

Calculation of Par value of Shares

• Shares provide partial ownership or a “share” of a corporation. There are two primary classes of shares – Equity Shares and Preference Shares.

• Preference shares are the class of shares which do not carry voting rights and in the event of dissolution, preference shareholders get first preference in clearing the amounts invested and there is usually guarantee of profits / dividend on an annual basis.Convertible Preference shares are preference shares that carry the option to be converted into equity shares after certain duration.

• Par value of shares refers to the face value or book value of the shares issued. The difference between issue price and par value is the discount or premium on shares.

$Par Value of Shares = Paid in Capital / Number of Shares outstanding$

To Calculate:

Par Value of Preferred Shares

Answer 9

To determine

2)

Introduction:

Calculation of Par value of Shares

• Shares provide partial ownership or a “share” of a corporation. There are two primary classes of shares – Equity Shares and Preference Shares.

• Preference shares are the class of shares which do not carry voting rights and in the event of dissolution, preference shareholders get first preference in clearing the amounts invested and there is usually guarantee of profits / dividend on an annual basis.Convertible Preference shares are preference shares that carry the option to be converted into equity shares after certain duration.

• Par value of shares refers to the face value or book value of the shares issued. The difference between issue price and par value is the discount or premium on shares.

$Par Value of Shares = Paid in Capital / Number of Shares outstanding$

To Calculate:

Par Value of Preferred Shares

Answer 10

To determine

3)

Introduction:

Journal Entries

Journal entries are the first step in recording financial transactions and preparation of financial statements.

These represent the impact of the financial transaction and demonstrate the effect on the accounts impacted in the form of debits and credits.

Assets and expenses have debit balances and Liabilities and Incomes have credit balances and according to the business transaction, the accounts are appropriately debited will be credited by credited to reflect the effect of business transactions and events.

To Prepare:

Summary Journal entries to record issuance of all stock.

Answer 11

To determine

3)

Introduction:

Journal Entries

Journal entries are the first step in recording financial transactions and preparation of financial statements.

These represent the impact of the financial transaction and demonstrate the effect on the accounts impacted in the form of debits and credits.

Assets and expenses have debit balances and Liabilities and Incomes have credit balances and according to the business transaction, the accounts are appropriately debited will be credited by credited to reflect the effect of business transactions and events.

To Prepare:

Summary Journal entries to record issuance of all stock.

Answer 12

To determine

4)

Introduction:

Journal Entries

Journal entries are the first step in recording financial transactions and preparation of financial statements.

These represent the impact of the financial transaction and demonstrate the effect on the accounts impacted in the form of debits and credits.

Assets and expenses have debit balances and Liabilities and Incomes have credit balances and according to the business transaction, the accounts are appropriately debited will be credited by credited to reflect the effect of business transactions and events.

To Prepare:

Journal Entries for Issuance and payment of Dividend

Answer 13

To determine

4)

Introduction:

Journal Entries

Journal entries are the first step in recording financial transactions and preparation of financial statements.

These represent the impact of the financial transaction and demonstrate the effect on the accounts impacted in the form of debits and credits.

Assets and expenses have debit balances and Liabilities and Incomes have credit balances and according to the business transaction, the accounts are appropriately debited will be credited by credited to reflect the effect of business transactions and events.

To Prepare:

Journal Entries for Issuance and payment of Dividend

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

Ch. 13 - Prob. 1QC Ch. 13 - Prob. 2QC Ch. 13 - Prob. 3QC Ch. 13 - Prob. 4QC Ch. 13 - Prob. 5QC Ch. 13 - Prob. 6QC Ch. 13 - Prob. 7QC Ch. 13 - Prob. 8QC Ch. 13 - Prob. 9QC Ch. 13 - Prob. 10QC

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Chapter 13 Solutions