F1 A

Question 1

Common stock and preferred stock are reported at?

Answer 1

PAR Value

Question 2

When issuing warrents when do we hit APIC

Answer 2

On the exercise date.

Question 3

What does restricting/appropriating retained earnings do?

Answer 3

It puts retained earnings aside for a special project so that it can restrict earnings available for dividends (appropriating retained earnings has no effect on net income.

Question 4

What value do we give to stocks used to pay for services?

Answer 4

Use the par value of common stock write the service at the market value of the stock and the additional goes to APIC

Dr legal service
Cr Common stock (Par)
Cr APIC

Question 5

Where do gains and losses on foreign currency transactions FV adjustments for investments go?

Answer 5

In OCI (If it were changes in FV it would be in Net Income)

Question 6

When translating a foreign financial statement, where would the gains and losses from remeasurement and translation be reported?

Answer 6

Remeasurements in Net income
Translations in OCI