Exam 15: Contributed Capital

Wally, Inc. issued 500 shares of $10 par preferred stock at $83 a share. Each share had a warrant attached that allowed the holder to purchase one share of $5 par common stock for $15. Soon after the preferred stock was issued, the preferred stock was selling ex-rights for $64 a share, and the warrants were selling for $16 each. The entry to record the issuance of the preferred stock would include a

Exhibit 15-1 Hanson Co. issued 10,000 shares of its $5 par common stock for $15 a share. In addition, it incurred legal and accounting fees, stock certificate costs, and other related expenses totaling $18,500. -Refer to Exhibit 15-1. Assume the sale occurred after the initial issuance at incorporation. The entry to record the sale and related expenses would include a

Shares of capital stock issued to and held by shareholders as of a specific date are

Define the following terms: Treasury Stock Authorized capital stock Subscribed capital stock Outstanding capital stock Issued capital stock

The ratio that shows how many dollars of net income were earned for every dollar invested by the owner is return on equity.

Given the following information for Jumping Johns Bounce Company: Required: Compute the total amount of contributed capital for Jumping John's Bounce Company.

Under the cost method of accounting for treasury stock transactions, when the proceeds from a sale are greater than the cost, the excess over cost is treated as an)

A corporation whose stock is traded on a stock exchange is called an)

Which of the following represents shares of stock that will be issued upon completion of an installment purchase contract?

U.S. GAAP and IFRS utilize similar accounting for shareholders' equity but there are some differences. Required: Explain the differences between U.S. GAAP and IFRS in their accounting for shareholders' equity.

How is Paid-in Capital from Share Options classified in the financial statements?

Under the fair value method, if an executive does not exercise a stock option and it is allowed to lapse, the account - Paid-in Capital Share Options - is debited. What account is credited?

Which one of the following statements is not true?

Which of the following types of corporations is owned or operated by a government unit?

For a compensatory share option plan, any compensation cost related to the plan must be recognized over the service period. The underlying financial accounting concept that supports this approach is

Exhibit 15-5 On January 1, 2016, Roberts Company adopts a compensatory share option plan and grants 40 executives 1,000 shares each at $30 a share. The fair value per option is $7 on the grant date. The company estimates that its annual employee turnover rate during the service period of three years will be 4%. -Refer to Exhibit 15-5. The journal entry to record compensation expense for 2016 will be Round your final answer to the nearest whole dollar.)

Exhibit 15-8 On January 1, 2016, Margarita Company granted share appreciation rights SARs) to the president, which permitted her to receive cash or stock for the difference between the quoted market price and $50 for 2,000 shares of the company's stock on the exercise date. The service period ends on December 31, 2018, and the rights must be exercised by December 31, 2021. Assume that on December 31, 2019, the president exercises all of her rights and receives cash. Using an options pricing model, the estimated fair values of the SARs were as follows: -Refer to Exhibit 15-8. What is the compensation expense related to the SARs for the year ending December 31, 2019?

Contributed capital does not include subscribed stock because it has not been issued yet.

Under the fair value method, the grant date is the date:

What characteristics may be specified in the contract for preferred stock?