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Chapter 15: Question 16Q (page 810)
List possible sources of additional paid-in capital.
Additional paid-in capital is generated by issuingcommon stock or preferred stock in excess of par value or premiums on stock issued.
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Cole Inc. owns shares of Marlin Corporation stock. At December 31, 2017, the securities were carried in Cole鈥檚 accounting records at their cost of \(875,000, which equals their fair value. On September 21, 2018, when the fair value of the securities was \)1,200,000, Cole declared a property dividend whereby the Marlin securities are to be distributed on October 23, 2018, to stockholders of record on October 8, 2018. Prepare all journal entries necessary on those three dates.
Under IFRS, the amount of capital received in excess of par value would be credited to:
(a) Retained Earnings.
(b) Contributed Capital.
(c) Share Premium.
(d) Par value is not used under IFRS
Distinguish among: cash dividends, property dividends, liquidating dividends, and stock dividends.
Ravonette Corporation issued 300 shares of \(10 par value ordinary shares and 100 shares of \)50 par value preference shares for a lump sum of \(13,500. The ordinary shares have a market price of \)20 per share, and the preference shares have a market price of $90 per share.
Instructions
Prepare the journal entry to record the issuance.
The following note related to stockholders鈥� equity was reported in Wiebold, Inc.鈥檚 annual report.
On February 1, the Board of Directors declared a 3-for-2 stock split, distributed on February 22 to shareholders of record on February 10. Accordingly, all numbers of common shares, except unissued shares and treasury shares, and all per share data have been restated to reflect this stock split. On the basis of amounts declared and paid, the annualized quarterly dividends per share were \(0.80 in the current year and \)0.75 in the prior year. |
Instructions
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