Lesson 15 Shareholders Equity

Question 1

Compensation expense is recognized?

Answer 1

Over the period during which the EE is performing services for the entity in exchange for compensation

Question 2

When stock warrants are issued

Answer 2

Any proceeds allocated to them is. Recorded in additional paid in capital

Question 3

A cash dividend is recorded when?

Answer 3

Declaration date

Question 4

A Stock Dividend is recorded?

Answer 4

Dr Retained Earnings FV of shares issues
Cr Common Stock (Par or stated value
Cr add PIC for excess

Question 5

The acquisition of treasury stock always decreases total?

Answer 5

Shareholders equity since it is recorded with a decrease to cash and debit to treasury stock a contra equity account