Analyze each transaction from issuances of stock by showing its effect on the accounting equation- specifically, identify the accounts and amounts for each transaction.

Which of the following stockholders' equity accounts follows the same debit and credit rules as liabilities? a.dividends accounts only b.revenue, common stock, and retained earnings accounts c.expense and dividends accounts d.expense accounts only

10. Where must earnings per share be disclosed in the financial statements to satisfy generally accepted accounting principles? a. On the face of the statement of retained earnings (or, statement of stockholders' equity.) b. In the footnotes to the financial statements. c. On the face of the income statement. d. On the face of the balance sheet.

Presented below are the captions of Faulk Company’s balance sheet. a.    Current assets. b.    Investments. c.    Property, plant, and equipment. d.    Intangible assets. e.    Other assets. f.    Current liabilities. g.    Noncurrent liabilities. h.    Capital stock. i.    Additional paid-in capital. j.    Retained earnings. Instructions Indicate by letter where each of the following items would be classified. 1.    Preferred stock. 2.    Goodwill. 3.    Salaries and wages payable. 4.    Accounts payable. 5.    Buildings. 6.    Equity investments (to be sold within one year). 7.    Current maturity of long-term debt. 8.    Premium on bonds payable. 9.    Allowance for doubtful accounts. 10.    Accounts receivable. 11.    Cash surrender value of life insurance. 12.    Notes payable (due next year). 13.    Supplies. 14.    Common stock. 15.    Land. 16.    Bond sinking fund. 17.    Inventory. 18.    Prepaid insurance. 19.    Bonds payable. 20.    Income taxes payable.

Question Content Area Which of the following entries journalizes the issuance of common stock? a.debit Fees Earned; credit Common Stock b.debit Common Stock; credit Accounts Receivable c.debit Cash; credit Common Stock d.debit Dividends; credit Cash

How does the stockholders' equity section in the balance sheet differ from the statement of stockholders' equity? Select one: a. The stockholders' equity section is more detailed than the statement of stockholders' equity b. The stockholders' equity section shows balances at a point in time; whereas, the statement of stockholders' equity shows activity over a period of time c. There are no differences between them d. The stockholders' equity section shows activity over a period of time; whereas, the statement of stockholders' equity is at a point time

Required Indicate the effect of each of the following transactions on (1) the current ratio, (2) working capital, (3) stockholders' equity, (4) book value per share of common stock, and (5) retained earnings. Assume that the current ratio is greater than 1:1 (Indicate the effect of each transaction by selecting "+" for increase, "-"for decrease, and leave the cell blank if there is no effect.). a. Collected account receivable. b. Wrote off account receivable. c. Converted a short-term note payable to a long-term note payable. d. Purchased inventory on account. e. Declared cash dividend f. Sold merchandise on account at a profit. g. Issued stock dividend h. Paid account payable. i. Sold building at a loss. Retained Value Earnings Current Working Stockholders Book Ratio Capital Equity

The entry to record common stock issued at its par value includes a:    A. credit to Cash  B. debit to Retained Earnings  C. credit to the Common Stock account  D. debit to Paid-in Capital in Excess of Par Value-Common