how does it effect the accounting equation?
GirlMath Financials issues 3,200 shares of its $0.02 par value common stock to raise funds for new product development. Assume the issue price is $15 per share.
Determine the financial statement effects of the issuance of common stock.
increase in assets (cash), increase in stockholders equity
is accounting fun?
the only correct answer is yes
StayPressed Inc. issues 3,900 shares of its $0.5 par value common stock to raise funds for new product development. Assume the issue price is $17 per share.
whats the journal entry for this question
Cash ............................................ 66,300
Common Stock ................................. 1,950
Additional Paid-In Capital ................. 64,350
Delulu Designs has 2,900 shares of common stock outstanding. On October 1, the company declares a $0.25 per share dividend to stockholders of record on October 15. The dividend is paid on October 31.
whats the journal entry for the payment of dividends?
Dividends Payable .......................... 725
Cash ................................................... 725
what is the formula for return on equity?
net income/average stockholders equity
Declaring a cash dividend has what effect on total stockholders’ equity?
A decrease in total stockholders’ equity.
what is the name of the next accounting class after Principles of Accounting 1 (2101)?
Managerial Accounting (2102)
IdiotsRus issues 1,000 shares of its $0.01 par value preferred stock for cash at $29 per share.
Record the issuance of the preferred shares.
Dr. Cash ................................................ 29,000
Cr. Preferred Stock ..................................... 10
Cr. Additional Paid-In Capital.................. 28,990
Beginning retained earnings: ?
Net income for the year: $180,000
Dividends for the year: $33,000
Ending retained earnings: $445,000
What is beginning retained earnings for the year?
298,000
What does a high receivables turnover ratio mean?
It means the company is really good at collecting money from customers fast!
What kind of account is treasury stock, and what is the effect on the accounting equation when a company issues treasury stock?
contra equity account; assets increase, and stockholders' equity increases
This U.S. state is known as the “Sunshine State"
Florida
Fiscally Feral Inc. issues 4,000 shares of $1 par value common stock at $49 per share. Later in the year, the company decides to purchase 140 shares at a cost of $52 per share.
Record the transaction if Fiscally Feral Inc. resells the 130 shares of treasury stock at $49 per share.
Cash ...................................... 6,370
Additional Paid-In Capital ........... 390
Treasury Stock .................................... 6,760
UrMom Clothing co began the year with a balance of $409,000 in Retained Earnings. During the year, the company had net income of $95,000 and declared no dividends. Calculate the ending balance of Retained Earnings.
504,000
If a company’s sales revenue and cost of goods sold (COGS) go up faster than its inventory, what happens to inventory turnover?
Inventory turnover will increase.
what effect does purchasing treasury stock have on the income statement?
Purchasing treasury stock has no effect on the income statement because treasury stock is a balance sheet move, not an income statement one.
What does "SI" in SI sessions stand for?
Supplemental Instruction
SendHelp Studios issued 700,000 of its 1 million shares of authorized common stock. At the end of the accounting period, 450,000 shares are outstanding. How many shares of treasury stock does SendHelp Studios have?
Treasury stock=Issued shares−Outstanding shares
700,000−450,000=250,000 shares
Gaslight Gas Company has 1,500 shares of 5%, $50 par value preferred stock that was issued at the beginning of 2023. All other shares are common stock. The company was not able to pay dividends in 2023, but plans to pay total dividends of $9,000 in 2024.
How much of the $9,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders in 2024, assuming the preferred stock is cumulative?
$1,500
The Sports Shack reports net income of $120,000, sales of $1,200,000, and average assets of $960,000. The profit margin is:
10%
What is the effect of a 2-for-1 stock split on total stockholders’ equity?
Stockholders’ equity does not change
what is the CPA in terms of accounting?
Certified Public Accountant (CPA) license
Salty Dog has two classes of stock authorized: 9%, $10 par preferred, and $1 par value common. The following transactions affect stockholders’ equity during 2024, its first year of operations
September 10: Purchases 11,000 shares of its own common stock for $34 per share
December 15: Resells 5,500 shares of treasury stock at $39 per share.
Record both transactions
Treasury Stock .......................... 374,000
Cash ............................................... 374,000
Cash ........................................ 214,500
Treasury Stock .................................... 187,000
Additional Paid-In Capital ...................... 27,500
IRUNTHIS Inc. has two classes of stock authorized: $2 par preferred and $0.05 par value common. As of the beginning of 2025, 480 shares of preferred stock and 5,200 shares of common stock have been issued. The following transactions affect stockholders’ equity during 2025:
February 5: Issue 1,300 shares of common stock .
April 20: Purchase 500 shares of treasury stock.
June 14: Resell 300 shares of treasury stock
September 10: Issue 200 shares of preferred stock
November 25: Declare a cash dividend on both common and preferred stock of $0.90 per share to all stockholders of record on December 10.
(Hint: Dividends are not paid on treasury stock.)
how much dividends will they pay to stockholders
6,282
What does it typically mean when a company has a high price-earnings (P/E) ratio?
A high price-earnings (P/E) ratio usually means that investors expect the company to grow and earn more money in the future, People are willing to pay more for the stock because they believe the company is going to do well later.