Distinguish between accounting for retired shares and for treasury shares.

Q: Define Issuance of New Shares.

A: Common stock: These are the ordinary shares that a corporation issues to the investors in order to…

Q: Define stockholders’ equity.

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: Restricted retained earnings by making an entry equal to the cost of treasury shares purchased.

A: Shareholder Equity- The amount invested by shareholders in a specific organization is referred to as…

Q: Briefly describe some of the similarities and differences between GAAP and IFRS with respect to the…

A: Generally Accepted Accounting Principles:   GAAP (Generally Accepted Accounting Principles) is a…

Q: In accounting for mutual ownerships, what is the treasury stock approach?

A:

Q: Bhefly discuss the difference between rights of holders of ordinary shares and preference shares…

A: The dividends are the earnings of the shareholders for their shareholdings in the company.

Q: Which one or more of the following would you not include within the heading Equity and Reserves in a…

A: Equity and reserves that are shown under statement of financial position means all amount…

Q: Distinguish between oversubscription and undersubscription of shares issued by a company.

A: Issuance of stock:It refers to the number of shares that are sold to the stockholders from number…

Q: over subscription of shares will be dealt with

A: Over subscription of shares occurs when more applications are received than number of shares…

Q: How is treasury stock reported on the balance sheet? Howis the “gain or loss” on reissued treasury…

A: Treasury stock is the own stock of the company that has been issued but was subsequently reacquired…

Q: Explain the difference between authorized, issued, and outstanding shares.

A: Stockholders’ Equity: Stockholders’ Equity is the total amount of capital given to a company by its…

Q: Explain how Stock Splits Effected in the Form of Stock Dividends.

A:

Q: Which method is used to distribute dividends to common share holders?

A: Dividend Dividend is the share of profit distributed to the shareholders of the company. When a…

Q: Why Shares repurchased and not retired are referred to as treasury stock?

A: Treasury stock is also known as treasury shares or reacquired stock. It refers to that previous…

Q: reasury stock allows for the exercising of voting rights and collection of declared cash dividends

A: Treasury shares means the share which has been buy back by the company . It will be shown as…

Q: Discuss the conceptual basis for accounting for a share buyback as treasury stock.

A: Treasury Stock: It refers to the shares that are reacquired by the corporation that are already…

Q: How is the accounting for a purchase of a company’s own stock (treasury stock) different from the…

A: A company’s stock is the shares a company holds or the shares on which a company has its ownership…

Q: What is a stock dividend?  How does a common stock dividend distributed to common stockholders…

A: When dividend is issued to stockholders in form of stock instead of cash then it is called as Stock…

Q: How do you record retirement of treasury shares?

A: There are two methods for retiring treasury stock  (1) cost method : in this method the following…

Q: Explain how convertible securities are determined to bepotentially dilutive common shares and how…

A:

Q: remium on issue of shares is a revenue expenditure

A: Premium on issue of shares is not a revenue expenditure.

Q: Explain the accounting for issuance of par value shares and no-par value shares.

A: The base cost at which a class of shares or stocks can be exchanged on the underlying contribution…

Q: xplain the methods of acquiring and accounting for treasury share

A: Treasury shares are shares re acquired or bought back by the company from its shareholders . The…

Q: Differentiate the effect on EPS of the sale of new shares, a stock dividend or stock split, and the…

A: Earning per share is computed by dividing the earnings available to the common/equity stock holders…

Q: What is the accounting for treasury share transactions?    a. Treasury shares are accounted for as…

A: Answer) The correct answer in the given question is: (c) On re-issuance of treasury shares, a gain…

Q: What is (are) the test(s) REQUIRED by the NYSE so that companies are eligible to list their shares?…

A: There are various test required for companies to eligible to list their shares

Q: How to report treasury stock in financial statements

A: Treasury Stock: It refers to the shares that are reacquired by the corporation that are already…

Q: Should preference shares be disclosed as equity or as debt?

A: Stocks: Stocks are shares in ownership in other companies. It represents the capital raised by a…

Q: share capital, subscription of shares, and treasury shares

A: The company issue share capital to fulfil its capital requirement. When the public pays the…

Q: The costs of legal, promotional, and accounting services necessary to effect the sale of shares are…

A: Share issue cost: Cost such as legal fee, promotional charge, and accounting services incurred for…

Q: What is the difference between the fully paid shares and the partially paid shares?

A: Equity: It is the amount shareholder invested in the company. This is the difference between total…

Q: Describe the corporate form and the issuance of shares of stock.

A: Describe a corporation form of business.   A corporation is a form of business where the business is…

Q: How does declaring a stock dividend affect the corporation’s assets, liabilities, and total equity?…

A: Stock dividends:   Stock dividends are dividends paid in the form of additional stock rather than in…

Q: Describe the accounting and reporting for reacquisition of shares.

A: When a company buy back or reacquire its own shares, it is known as treasury stock. It is dependent…

Q: Describe in general the various methods of accounting for an investment in equity shares of another…

A:

Q: Record the issuance of shares when sold for cash and for noncash consideration

A: When the shares are issued for cash then common stock account is credited and cash account is…

Q: Discuss the impact of issuance of share dividends to the existing shareholders. Knowledge)

A: A stockholder is a person who owns stock in a company. Stockholders own a portion of the company. If…

Q: value a share of common stock.

A: Common stock is the ordinary shares issued by the company. It shows the equity that offers the share…

Q: Which of the following is not a method that may be used to account for treasury shares? a. Cost…

A: The treasury shares are the shares which are reacquired by the issuing company from the…

Q: What factors to be considered in choosing either bonds, preference shares or ordinary shares as the…

A: A company can raise capital by various means – by issuing bonds or by issuing preference shares or…

Q: Explain stock dividends and stock splits and how we account for them.

A: Stock dividends: Stock dividends involve the issuance of additional shares of stock to existing…

Q: Property or services received in exchange for capital stock should be recorded at the par or stated…

A: Capital stock of the company can be issued for cash or in exchange of assets or services. When…