Question: Textbook question from: Financial reporting, financial statement analysis, and valuation a strategic 9th Edition (Question has been posted previously but is incomplete and missing answers

Textbook question from: Financial reporting, financial statement analysis, and valuation a strategic 9th Edition

(Question has been posted previously but is incomplete and missing answers for k - t)

7.1 Common Equity Transactions. Describe the directional effect (increase,

decrease, or no effect) of each transaction on the components of the book value of common

shareholders equity shown in the chart below.

a. Issuance of $1 par value common stock at an amount greater than par value

b. Donation of land by a governmental unit to a corporation

c. Cash dividend declared

d. Previously declared cash dividend paid

e. Property dividend declared and paid

f. Large stock dividend declared and issued

g. Small stock dividend declared and issued

h. 2-for-1 stock split announced and issued

i. Stock options granted

j. Recognition of compensation expense on stock options

k. Stock options exercised

l. Stock options expired

m. Treasury stock acquired (company uses the cost method)

n. Treasury stock in Transaction m reissued at an amount greater than the original acquisition

price

o. Treasury stock in Transaction m reissued at an amount less than the original acquisition

price

p. Restricted stock issued (grant date)

q. Recognition of compensation expense related to restricted stock

r. Granting of stock appreciation rights to be settled with cash

s. Recognition of compensation expense on stock appreciation rights

t. Reacquisition and retirement of common stock at an amount greater than original issue

price

Item

Common Stock

Additional

Paid-in Capital

Deferred

Compensation

Retained

Earnings (use *

to indicate

income

statement

effect)

Treasury Stock

at Cost

Total Common

Shareholders

Equity

k.

l.

m.

etc.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!