Stock

Question 1

Stock Split

Answer 1

• no journal entries

- no changes to APIC or R/E

Question 2

Stock Compensation

Answer 2

• valued at the FMV of the stock or FMV of the services, whichever is more clearly determinable
• the mkt value of the shares [[[as the date of the contract]]]
• viewed as stock subscription

Question 3

Earnings per share amounts [must] be presented

Answer 3

1) income from continuing operations
2) net income.

Earnings per share date on discontinued operations must be shown either on the face of the income statement or in the footnotes.

Question 4

Stock Dividend - small stock dividend

Answer 4

has no effect on total stockholders’ equity
--- IN AND OUT---
DEBIT --> R/E
CREDIT ------> C/S AT PAR
CREDIT ------> APIC (FMV-PAR)

Question 5

Stock Dividend - LARGE stock dividend

Answer 5

has no effect on total stockholders’ equity

declaration
DEBIT –> R/E
CREDIT —-> C/S DISTRIBUTABLE

distribution
DEBIT–> C/S DISTRIBUTABLE
CREDIT —-> CAPITAL STOCK

Question 6

Cumulative preferred dividends in arrears are not a liability until

Answer 6

… declared

…should be disclosed in a footnote or parenthetically