Chapter 11

Question 1

Large % stock dividend: 25% or more

Answer 1

Retained income (# shares x par value) dr
Common stock cr

Remember to take the declared dividend (Outstanding+what has been bought) = to get # of shares

Question 2

Small % stock dividend: less than 25%

Answer 2

Retained income (# shares x market value) dr
Common stock (# shares x par value) cr
Additional paid-in capital cr

Question 3

Treasury Stock is calculated how?

Answer 3

issued-outstanding

Question 4

J/E for repurchasing stock as first entry

Answer 4

Treasury dr
Cash cr

Question 5

J/E for selling shares previously purchased

Answer 5

Cash dr (new amount x new per share)
Addition paid in (dr or cr)
Treasury Stock (new shares x
beginning amount per share)

Question 6

J/E for repurchasing stock AFTER first entry

Answer 6

Treasury Dr (new shares x
beginning amount per share)
Additional Paid in Capital (dr or cr)
Cash (new amount x new per share)

Question 7

Treasury Stock

Answer 7

company has repurchased and holds in its treasury, reducing outstanding shares without retiring them