INTERMEDIATE ACCOUNTING <CUSTOM LL>
10th Edition
ISBN: 9781260887068
Author: SPICELAND
Publisher: MCG CUSTOM
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Textbook Question
Chapter 18, Problem 18.11Q
The par value of shares historically indicated the real value of shares and all shares were issued at that price. The concept has changed with time. Describe the meaning of par value as it has evolved to today
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QUESTION 1
Which best describes par value for stock?
A.
An arbitrary amount set by the company for each share of stock
B.
The current market value of the stock
C.
The amount expected to be paid out as a dividend on a share of stock
D.
The value at which stock shares were issued
What is par value?
Select one:
a. The price at which a company's stock is sold
b. The dollar amount credited to capital stock when issued
c. The lowest price at which a company's stock may be issued
d. The highest price at which a company's stock may be issued
The par value of a stock *
O is legally significant.
O reflects the most recent market price.
is selected by the SEC.
is indicative of the worth of the stock.
Chapter 18 Solutions
INTERMEDIATE ACCOUNTING <CUSTOM LL>
Ch. 18 - Identify and briefly describe the two primary...Ch. 18 - Prob. 18.2QCh. 18 - Prob. 18.3QCh. 18 - Prob. 18.4QCh. 18 - Prob. 18.5QCh. 18 - Prob. 18.6QCh. 18 - Prob. 18.7QCh. 18 - What is meant by a shareholders preemptive right?Ch. 18 - Terminology varies in the way companies...Ch. 18 - Most preferred shares are cumulative. Explain what...
Ch. 18 - The par value of shares historically indicated the...Ch. 18 - Prob. 18.12QCh. 18 - How do we report components of comprehensive...Ch. 18 - The balance sheet reports the balances of...Ch. 18 - At times, companies issue their shares for...Ch. 18 - Prob. 18.16QCh. 18 - The costs of legal, promotional, and accounting...Ch. 18 - When a corporation acquires its own shares, those...Ch. 18 - Discuss the conceptual basis for accounting for a...Ch. 18 - The prescribed accounting treatment for stock...Ch. 18 - Brandon Components declares a 2-for-1 stock split....Ch. 18 - What is a reverse stock split? What would be the...Ch. 18 - Suppose you own 80 shares of Facebook common stock...Ch. 18 - Prob. 18.24QCh. 18 - Comprehensive income LO181 Schaeffer Corporation...Ch. 18 - Stock issued LO184 Penne Pharmaceuticals sold 8...Ch. 18 - Prob. 18.3BECh. 18 - Prob. 18.4BECh. 18 - Prob. 18.5BECh. 18 - Retirement of shares LO185 Agee Storage issued 35...Ch. 18 - Treasury stock LO185 The Jennings Group...Ch. 18 - Prob. 18.8BECh. 18 - Prob. 18.9BECh. 18 - Property dividend LO187 Adams Moving and Storage,...Ch. 18 - Stock dividend LO188 On June 13, the board of...Ch. 18 - Prob. 18.14BECh. 18 - Stock split LO188 Refer to the situation...Ch. 18 - Prob. 18.16BECh. 18 - Prob. 18.2ECh. 18 - Earnings or OCI? LO182 Indicate by letter whether...Ch. 18 - Stock issued for cash; Wright Medical Group LO184...Ch. 18 - Issuance of shares; noncash consideration LO184...Ch. 18 - Prob. 18.6ECh. 18 - Share issue costs; issuance LO184 ICOT Industries...Ch. 18 - Prob. 18.14ECh. 18 - Prob. 18.16ECh. 18 - Prob. 18.20ECh. 18 - Prob. 18.22ECh. 18 - Prob. 18.25ECh. 18 - Various stock transactions; correction of journal...Ch. 18 - Prob. 18.1DMPCh. 18 - Prob. 18.6DMPCh. 18 - Prob. 18.8DMP
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- If shares have been sold above the nominal value what does this mean and why?arrow_forwardWhat is the importance of finding intrinsic value of shares even though it is traded in the stock Market plz give detail ans i will give you upwardarrow_forwardThe 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.arrow_forward
- A stock's par value refers to the: O A. Issue price of the stock. O B. Value assigned per share by the corporate charter. O C. Market value of the stock on the date of the financial statements. D. Maximum selling price of the stock.arrow_forwardHow do you calculate outstanding shares of stock?arrow_forwardWhat does the additional paid-in capital account represent?a) The difference between the par and the stated value of common stock.b) The price changes that result for stock trading subsequent to its original issue.c) The market price of all common stock issued.d) The amount by which the original sales price of stock exceeds the par value.arrow_forward
- A stock's par value refers to the: O A. Value assigned per share by the corporate charter. O B. Market value of the stock on the date of the financial statements. OC. Maximum selling price of the stock.O D. Issue price of the stock.arrow_forwardWhich of the following is the second priority in the valuation of shares issued for services received? Par Value of shares FV of services Billings on services FV of sharesarrow_forwardWhat information do you need to calculate the weighted average common shares outstanding?arrow_forward
- What is the difference between Par Value of shares and Issue price of shares?arrow_forwardWhich of the following decreases total equity? A. A stock split B. Recording Revenue C. The purchase of Treasury Stock D. Issuance of Convertible preferred stockarrow_forwardWhat happens to the par value, the share’s trading price, and the number of shares outstanding in a 2-for-1 stock split?arrow_forward
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