Podcast
Questions and Answers
What is the new par value of Dillon Corporation's shares after a 2 for 1 split?
What is the new par value of Dillon Corporation's shares after a 2 for 1 split?
- $10 per share
- $40 per share
- $20 per share
- $2 per share (correct)
What is the equity total of Huang Corporation after distributing a 10% share dividend?
What is the equity total of Huang Corporation after distributing a 10% share dividend?
- ¥1,078,000
- ¥1,020,000
- ¥980,000 (correct)
- ¥1,100,000
How many ordinary shares does Dillon Corporation issue after the 2 for 1 split if it had 50,000 shares before the split?
How many ordinary shares does Dillon Corporation issue after the 2 for 1 split if it had 50,000 shares before the split?
- 100,000 shares (correct)
- 50,000 shares
- 200,000 shares
- 25,000 shares
What happens to the share premium account of Huang Corporation after the share dividend is distributed?
What happens to the share premium account of Huang Corporation after the share dividend is distributed?
What is the total number of shares after Dillon Corporation's 2 for 1 split?
What is the total number of shares after Dillon Corporation's 2 for 1 split?
What is the Share Capital–Ordinary reported by Kerwin Packaging Corporation as of December 31, 2014?
What is the Share Capital–Ordinary reported by Kerwin Packaging Corporation as of December 31, 2014?
How many treasury shares does BOX Corporation have based on the information provided?
How many treasury shares does BOX Corporation have based on the information provided?
What is the total number of ordinary shares authorized for BOX Corporation?
What is the total number of ordinary shares authorized for BOX Corporation?
What amount is carried as Share Premium-Ordinary for Kerwin Packaging Corporation?
What amount is carried as Share Premium-Ordinary for Kerwin Packaging Corporation?
What is the outstanding number of shares for BOX Corporation?
What is the outstanding number of shares for BOX Corporation?
What is the par value of the ordinary shares issued by Kerwin Packaging Corporation?
What is the par value of the ordinary shares issued by Kerwin Packaging Corporation?
How much cash did Kerwin Packaging Corporation receive from issuing ordinary shares?
How much cash did Kerwin Packaging Corporation receive from issuing ordinary shares?
How much are the preference shares issued by Kerwin Packaging Corporation at par?
How much are the preference shares issued by Kerwin Packaging Corporation at par?
What amount will be credited to Share Capital–Ordinary when Vickers Company issues 5,000 ordinary shares with a $5 par value for $175,000?
What amount will be credited to Share Capital–Ordinary when Vickers Company issues 5,000 ordinary shares with a $5 par value for $175,000?
How much will be credited to Share Premium–Ordinary when Vickers Company issues the shares?
How much will be credited to Share Premium–Ordinary when Vickers Company issues the shares?
When Dailey Company issues 3,000 shares with a $1 par value to acquire land worth $82,000, how much will be debited to the Land account?
When Dailey Company issues 3,000 shares with a $1 par value to acquire land worth $82,000, how much will be debited to the Land account?
What will be the total amount debited to Cash for the share issue by Vickers Company?
What will be the total amount debited to Cash for the share issue by Vickers Company?
What will be credited to Share Capital–Ordinary when Dailey Company issues 3,000 shares with a $1 par value?
What will be credited to Share Capital–Ordinary when Dailey Company issues 3,000 shares with a $1 par value?
If Share Premium–Ordinary is $79,000 after Dailey Company's share issuance, what amount would have been credited to it?
If Share Premium–Ordinary is $79,000 after Dailey Company's share issuance, what amount would have been credited to it?
What is the par value of the ordinary shares issued by Vickers Company?
What is the par value of the ordinary shares issued by Vickers Company?
What total value will Share Premium–Ordinary reflect for Vickers Company after issuing shares?
What total value will Share Premium–Ordinary reflect for Vickers Company after issuing shares?
How much does Share Premium–Ordinary increase when Voltaire Corporation issues 5,000 ordinary shares for CHF20 each?
How much does Share Premium–Ordinary increase when Voltaire Corporation issues 5,000 ordinary shares for CHF20 each?
What is the total increase in Share Capital–Ordinary when Voltaire Corporation issues the shares?
What is the total increase in Share Capital–Ordinary when Voltaire Corporation issues the shares?
What amount is credited to Share Premium–Ordinary when Jahnke Corporation issues shares for €11 each?
What amount is credited to Share Premium–Ordinary when Jahnke Corporation issues shares for €11 each?
If Jahnke Corporation issues 8,000 shares of €2 par value at €11 each, what is the amount debited to Cash?
If Jahnke Corporation issues 8,000 shares of €2 par value at €11 each, what is the amount debited to Cash?
What is the journal entry for the total cash received by Voltaire Corporation from its share issuance?
What is the journal entry for the total cash received by Voltaire Corporation from its share issuance?
What happens to Retained Earnings in the transaction where Jahnke Corporation issues shares?
What happens to Retained Earnings in the transaction where Jahnke Corporation issues shares?
Which account is credited for the difference between the issue price and par value when shares are issued?
Which account is credited for the difference between the issue price and par value when shares are issued?
What is the effect of issuing shares on total equity for Voltaire Corporation?
What is the effect of issuing shares on total equity for Voltaire Corporation?
What is the effect of issuing par value ordinary shares for cash at par value on share capital?
What is the effect of issuing par value ordinary shares for cash at par value on share capital?
How do cash dividends impact retained earnings?
How do cash dividends impact retained earnings?
What is the effect of paying a cash dividend on share premium?
What is the effect of paying a cash dividend on share premium?
How does issuing ordinary shares required by a share dividend declaration affect retained earnings?
How does issuing ordinary shares required by a share dividend declaration affect retained earnings?
What happens to the share premium account when ordinary shares are issued for cash above par value?
What happens to the share premium account when ordinary shares are issued for cash above par value?
What is the effect of purchasing treasury shares on share capital?
What is the effect of purchasing treasury shares on share capital?
What effect does declaring a cash dividend have on the share capital account?
What effect does declaring a cash dividend have on the share capital account?
What is the total equity as reported for the company?
What is the total equity as reported for the company?
What is the net effect on retained earnings when cash dividends are paid?
What is the net effect on retained earnings when cash dividends are paid?
How much was paid to the government for incorporation fees?
How much was paid to the government for incorporation fees?
What was the par value of the ordinary shares authorized for Horner Corporation?
What was the par value of the ordinary shares authorized for Horner Corporation?
How many ordinary shares were issued on January 1?
How many ordinary shares were issued on January 1?
What was the estimated value of the legal services paid in shares on January 30?
What was the estimated value of the legal services paid in shares on January 30?
What was the asking price for the land for which shares were issued on July 2?
What was the asking price for the land for which shares were issued on July 2?
At what price per share was the treasury stock purchased on September 5?
At what price per share was the treasury stock purchased on September 5?
How many treasury shares were sold on December 6?
How many treasury shares were sold on December 6?
Flashcards
Share Premium–Ordinary
Share Premium–Ordinary
The amount received from issuing shares above their par value.
Par Value
Par Value
The face value or stated value assigned to a share by a corporation.
Share Capital–Ordinary
Share Capital–Ordinary
The total value of issued ordinary shares based on their par value.
Issuing Ordinary Shares
Issuing Ordinary Shares
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Calculating Share Premium
Calculating Share Premium
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Journal Entry for Share Issuance
Journal Entry for Share Issuance
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Share Issuance - Impact on Share Capital
Share Issuance - Impact on Share Capital
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Share Issuance - Impact on Share Premium
Share Issuance - Impact on Share Premium
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Share Issuance - Journal Entry (Cash)
Share Issuance - Journal Entry (Cash)
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Share Issuance - Journal Entry (Share Capital)
Share Issuance - Journal Entry (Share Capital)
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Share Issuance - Journal Entry (Share Premium)
Share Issuance - Journal Entry (Share Premium)
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Share Acquisition for Land
Share Acquisition for Land
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Outstanding Ordinary Shares
Outstanding Ordinary Shares
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Treasury Shares
Treasury Shares
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Share Capital-Ordinary (Par Value)
Share Capital-Ordinary (Par Value)
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Share Premium – Ordinary
Share Premium – Ordinary
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Issued Share Calculation
Issued Share Calculation
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Par Value
Par Value
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Share Split Calculation
Share Split Calculation
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2-for-1 split
2-for-1 split
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Stock Split Impact on Par Value
Stock Split Impact on Par Value
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Share Dividend
Share Dividend
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Share Dividend Calculation
Share Dividend Calculation
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Share Dividend - Market Value Impact
Share Dividend - Market Value Impact
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Issued ordinary shares for cash:
Issued ordinary shares for cash:
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Cash dividend payment:
Cash dividend payment:
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Share dividend declaration:
Share dividend declaration:
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Treasury stock purchase:
Treasury stock purchase:
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Share capital (Ordinary):
Share capital (Ordinary):
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Share premium:
Share premium:
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Retained earnings:
Retained earnings:
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Journal entry:
Journal entry:
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Share Capital-Ordinary
Share Capital-Ordinary
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Share Premium-Ordinary
Share Premium-Ordinary
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Retained Earnings
Retained Earnings
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Par Value
Par Value
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Issue Price
Issue Price
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Organization Expense
Organization Expense
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Treasury Shares
Treasury Shares
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Issued Shares
Issued Shares
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Journal Entry
Journal Entry
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Share Transaction
Share Transaction
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Study Notes
Transaction Recording - Share Issuance
- Voltaire Corporation's issuance of 5,000 ordinary shares at CHF20 per share (CHF5 par value) results in a CHF75,000 credit to Share Premium-Ordinary.
- A debit to Cash for CHF100,000 (5,000 shares * CHF20) and a credit to Share Capital-Ordinary for CHF25,000 (5,000 shares * CHF5) reflect this transaction.
- Similar transactions, like Jahnke Corporation issuing shares at €11 per share (€2 par value), show increases in Cash, Share Capital-Ordinary, and Share Premium-Ordinary.
- Vickers Company issuing 5,000 ordinary shares for $175,000 will have Share Capital-Ordinary credited for $175,000 and Share Premium-Ordinary credited for $150,000 (reflecting a $5 par value).
Share Splits and Dividends
- Dailey Company issuing 3,000 shares for land valued at $82,000 will debit Land for $66,000 and credit Share Capital-Ordinary for $3,000..
- A share split doesn't affect retained earnings.
- Cumulative preference shares dividends are paid in arrears.
- Preference share dividends affect retained earnings.
Other Important Facts
- Treasury shares reduce equity.
- Stock dividends decrease retained earnings.
- Cash dividends decrease retained earnings.
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Description
This quiz covers concepts related to share issuance, including transactions from Voltaire Corporation and others. It examines how share capital and premiums are recorded and how share splits affect accounts. Test your knowledge on the financial implications of these transactions.
