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16 Cards in this Set
- Front
- Back
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RE-ISSUANCE OF THE TREASURY STOCK has no affect on ________, EXCEPT if reacquisition cost is > than original issue price
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R/E
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Book value per C/S=
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Common shareholders' Equity
____________________________ Common shares outstanding |
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Common shareholders' Equity=
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Total S/Holders Eq (Assets -Liab)
- Preferred stocks outst. ( at greater call or par) - Cumullative preferred divid in Arrears _________________________ Common shareholders' Equity |
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The reacquisition of outstanding shares at a price less than their book value per share causes the book value per share of the remaining outstanding shares to _____________
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INCREASE
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_____________ is an increase in equity ( net assets) in excess of par or stated value arising from transactions involving the enterprise's own stock.
It is part of ______________, but not part of _______________ |
APIC
S/H's EQUITY, but not R/Earnings |
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JE for Reacquisition of C/S using COST method
JE for Reacquisition of C/S using PAR VALUE method |
DR TREASURY SHARES
--------- CR CASH DR TREASURY SHARES @ par value DR APIC for # share acqured X (original price - par value) DR R/E plug _________ CR CASH |
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Under the partnership agreement, each partner has an _______ initial capital balance accounted for under the ________ method.
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EQUAL
GOOD WILL |
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Statement of R/E
How to calc. R/E? |
CY Net Income
+ Beg R/E - Divid Declared +/- ideA _________________ R/E A ccounting pritincipal change |
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If the WARRANTS are detachable, the proceeds from the bonds issue must be allocated between the bonds and the warrants (under STOCKHOLODER'S EQUITY) on the basis of ____________
Stock warrants outstanding is reported under S/H's Equity and will be tranferred into _______ when warrants are _______ . |
FAIR MARKET VALUES
J/E DR Cash - Face x MRate CR Stock warrants outstanding (bonds outstanding x # of warrants per bond x Market price per warrant) CR Bond payable - FV DISCOUNT DR/ PREMIUM CR - plug APIC when warrants are exercised. |
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The excess of the subscription price over the stated value of the NO PAR common stock should be recorded as APIC when the subscription is ____________
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RECORDED
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Stock dividends are accounted for by reclassifying a portion of ______as contributed capital. They do not reduce assets or increase liabilities. Therfore, total stockholders Equity is ___________--
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R/E % stock divid @ FMV
NOT CHANGED |
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Restructuring of the Debt using Cash and C/S
Calc. Gain on restructuring Calc. change in S/H Equity |
$$$$ of debt
- Cash paid - C/S at FMV ____________ Gain on restructuring Gain + C/S at FMV __________________________________ Change in S/H Equity of the debtor |
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LIQUIDATING DIVIDENDS are a return __________ rather than a return _____ investment
The liquidating dividend is that portion of the cash dividend that ___________ the balance in R/E |
OF THE INVESTMENT
ON THE EXCEEDS |
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J/E to record the declaration of the stock dividend
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R/E ( shares outst. x $ per share on that date x % dividend) DR
COMMON STOCK DIVIDEND ( shares outst. x $ par value x % dividend) CR APIC ( difference) CR |
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R/E is reduced and Dividend liability is recorded on the date of dividend ___________
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DECLARATION
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The entry under the par value method _________ APIC
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REDUCES
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