Shown below are some equity transactions for Stefanek Ltd., a new company, which reports under IFRS. Instructions
Question:
Shown below are some equity transactions for Stefanek Ltd., a new company, which reports under IFRS.
Instructions
For each, state whether common shares, retained earnings, and cash flow will increase, decrease, or remain unchanged. Quantify the amount of any increases or decreases.
Transcribed Image Text:
Transaction Issued 10,000 common shares at $2.85 per share. Declared a dividend of $0.55 per share. Issued 5,000 common shares in exchange for a piece of equipment. The company's shares were trading at $3.25 per share at the date of the transaction. The equipment had a retail value of $17,000. Paid the dividend of $0.55 that had been declared previously. Declared and distributed a 10% stock dividend. The company's shares were trading at $3.30 per share. Repurchased 2,000 common shares at a price of $3.00 per share. The repurchased shares were cancelled. Completed a 2-for-1 stock split. Common Retained Shares Earnings Cash Flow
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Transaction Common Shares Retained Earnings Cash Flow Issued 10000 common shares at 285 per share In...View the full answer
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Related Book For
Financial Accounting Tools For Business Decision Making
ISBN: 9781119594574
8th Canadian Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine, Christopher D. Burnley
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