Statement of Changes in Equity

Question 1

2 for 1 stock split do not require a journal entry because

Answer 1

they do not change the value in equity

Question 2

2 for 1 stock split

Answer 2

increase the number of shares and decrease the par value per share

Question 3

reissued stocks mean

Answer 3

its sold

Question 4

when stocks are sold or bought back it becomes

Answer 4

treasury stocks

Question 5

Dividends declared problem would affect

Answer 5

the retain earnings account

Question 6

Common and preferred stocks are recorded at the number of shares issued times

Answer 6

stated or par value

Question 7

In a reverse stock split, the number of shares outstanding is

Answer 7

reduced

Question 8

When a stock splits or is reversed there is no change to

Answer 8

equity

Question 9

under the straight line method, interest expense is reported

Answer 9

each period

Question 10

retained earnings is not used to recognize the gain on reissued treasury stock

Answer 10

under the cost method. It will go in the Add’l Paid In Capital