Exam 15: Contributed Capital

What account should be debited when stock issuance costs are associated with the initial issuance of stock at incorporation?

The Securities and Exchange Commission requires that Subscriptions Receivable be disclosed on the financial statements filed with it as a(n)

Exhibit 15-4 On January 1, 2014, Masters, Inc., grants a compensatory share option plan to 15 of its executives. The plan allows each executive to buy 1,000 shares of its $1 par common stock at $30 a share after a three-year service period. The value of each option is estimated to be $9. The company estimates it will have an annual 3% employee turnover rate during the service period. -Refer to Exhibit 15-4. By how much has contributed capital increased as of the beginning of 2017?

For share appreciation rights (SARs) compensation plans where the employee is expected to receive cash on the exercise date, the account that is credited in the year-end adjusting journal entry to recognize the compensation expense is

A corporation acquired a copyright by issuing 1,000 shares of $5 par common stock. At the time of the exchange, the stock was selling for $40 per share. The copyright had a carrying value of $18,000 to the author. The purchasing corporation should assign to the copyright a value of

When recording the conversion of preferred stock into common stock, if the total contributed capital eliminated in regard to the preferred stock is less than the common stock par value, the difference is debited to

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

Exhibit 15-6 On January 1, 2014, 50 executives were given a performance-based share option plan that would award them with a maximum of 300 shares of $10 par common stock for $20 a share. On the grant date, the fair value of an option was $16.50. The number of options that will vest depends on the size of the annual average increase in sales over the next three years according to the following table: On the grant date, the company estimates the annual average sales increase will be 14%. -Refer to Exhibit 15-6. The estimated total compensation cost will be

List four transactions that comprise a corporation's contributed capital.

Which one of the following equations is accurate?

Miscellaneous fees arising from the issuance of stock are charged to the organization expense account only if this is not the company's first issuance of stock.

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

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

Under a restricted share plan the employees can sell the stock at their discretion.

Which of the following statements is true regarding preferred stock?

When retiring treasury stock, retained earnings could be affected under which of the following methods?

When a company reacquires its own stock, the entry to record the reacquisition could include an entry to Additional Paid-in Capital under which of the following methods?

Which of the following methods should be used to account for the conversion of preferred stock to common stock?

Preferred stockholders share with common stockholders in any "extra" dividends when the preferred stock is

On January 3, 2013, Maris Corporation issued 4,000 shares of $50 par convertible preferred stock at $90 per share. Each share is convertible into four shares of $10 par common stock. Required: a.Prepare the journal entry to record the issuance of the stock on January 3, 2013. b.On March 5, 2015, each share of preferred was converted. Prepare the journal entry to record this conversion. c.Assume that instead of the above circumstances regarding conversion, the company agrees to convert each share of preferred into ten shares of $10 par common stock on March 5, 2015. Prepare the journal entry to record this conversion.