Gwyneth Gloria 86% found this document useful (7 votes) 20K views 8 pages Intermediate Accounting Volume 2 answer key © © All Rights Reserved Did you find this document useful?Is this content inappropriate?Report this Document 86% found this document useful (7 votes) 20K views8 pages Chapter 20 - 23Uploaded byGwyneth Gloria Description:Intermediate Accounting Volume 2 answer key Full description Jump to Page You are on page 1of 8 Search inside document You're Reading a Free Preview
Buy the Full Version Reward Your CuriosityEverything you want to read. Anytime. Anywhere. Any device. No Commitment. Cancel anytime.  1. When shares with par value are sold, the proceeds shall be credited to thea.Share capital accountb.Share premiumc.Retained earningsd.Share capital account to the extent of the par of the shares issued with any excess being reflectedin share premium 2. When shares without par value are sold, the excess proceeds over stated value shall be credited to Get answer to your question and much more 3. If shares are issued for noncash consideration, the shares issued shall be measured by4. If shares are issued to extinguish a financial liability, what is the initial measurement of the shares issued? Get answer to your question and much more 5. When shares are issued for services received, the measure is equal to Get answer to your question and much more a.Fair value of the servicesb.Par value of the shares issuedc.Book value of the shares issuedd.Fair value of the shares issued 6. Treasury shares shall be recorded at cost irrespective of whether these are acquired below or above par value.The cost of treasury shares acquired for noncash consideration is usually measured by7. The total cost of treasury shares shall be reported as Get answer to your question and much more Get answer to your question and much more 8. If treasury shares are reissued for noncash considearation, the proceeds shall be measured by Get answer to your question and much more 9. Which of the following statements is incorrect concerning treasury shares?a.Treasury shares shall be recorded at cost irrespective of whether acquired below or above par value.b.The total cost of treasury shares shall be deducted from equity.c.Treasury shares may be recognized as financial assetd.Gain or loss on sale of treasury shares shall not be included in profit or loss.10. “Loss” from sale of treasury shares shall be charged to 11. Gains and losses on retirement of treasury shares shall not be included in profit or loss. If the retirement Get answer to your question and much more results in a gain, such gain shall be credited to12. Loss on retirement of treasury shares shall be debited to Get answer to your question and much more Get answer to your question and much more When no10. When no-par value stock does not have a stated value, the entire proceeds from the issuance of the stock becomes legal capital.
When shares without par value are sold the excess proceeds overstated value shall be credited to?When shares without par value are sold, the proceeds should be credited to the share capital account. If the no-par stock has a stated value, the excess proceeds over stated value may alternatively be credited to share premium. 12.
Where does paid in capital in excess of par go on a balance sheet?Additional paid-in capital refers to only the amount in excess of a stock's par value. Paid-in capital is reported in the shareholders' equity section of the balance sheet.
What is the accounting treatment for the excess of issue price over par value of shares issued?The excess received over the par value is reported in the Additional Paid-in Capital from Common Stock account.
How should the excess of the issue price over the par value of the ordinary share subscribed be recorded?How should the excess of the subscription price over the par value of common stock subscribed be recorded? as APIC when the subscription is received as APIC when the subscription is collected as retained earnings when the subscription is received as APIC when the capital stock is issued 12.)
What is paid in capital in excess of par?What is Capital in Excess of Par? Capital in excess of par is the amount paid by investors to a company for its stock, in excess of the par value of the stock. Par value is the legal capital per share, and is usually printed on the face of the stock certificate.
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