SE

Question 1

bv/common share

Answer 1

common SH equity/common shares outstanding

where numerator= total SH equity

• p/s outstanding at > call or par
• cumulative preferred dividends in arrears

Question 2

TS-cost method

Answer 2

orig issue
dr. cash
cr c/s
cr apic-c/s

buy back above issue
dr ts
cr cash

reissue above cost
dr cash
cr ts
cr apic-ts

Question 3

TS-legal/par method

Answer 3

orig issue 10,000 shares $10 par, sold for $15
dr cash 150,000
cr C/S 100,000 (10,000x10)
cr APIC C/S 50,000 (10,000x5)

buy back 200 shares for $20 (above issue)
dr TS 2,000 (10x200) 10 par
dr APIC-C/S 1,000 *