Becker 7 Flashcards
1
Q
How are property Dividends Recorded?
A
Recorded at FMV and Retained earnings is decreased
2
Q
How is a liquidating Dividend accounted for?
A
Eliminate RE and any excess. The excess will be a Dr APIC.
3
Q
How does a stock dividend affect Retained Earnings?
A
If small Stock dividend (less than 25% then use FMV)
If large dividend (25%+ then use Par Value)
Each of these respective amounts is reduced from RE and added to Capital stock and APIC. (since it is a reclass there is no affect to SE)
4
Q
How do you calculate Outstanding shares?
A
Issued shares - Treasury stock + reissued treasury stock
