Exam 1

• Dr. Cash
• Cr. Common Stock
• Cr. PIC

• Dr. Treasury Stock (buy-back price)
• Cr. Cash

• Cash > Cost
• Dr. Cash
• Cr. Treasury Stock
• Cr. PIC (TS)

• Cash < Cost
• Dr. Cash
• Dr. PIC (TS) or RE (if PIC(TS) is $0)
• Cr. Treasury Stock

• If original issue price > buy back
• Dr. PIC (original) 
• Dr. Commons Stock (par)
• Cr. Treasury Stock (cost)
• Cr. PIC (Retirements) plug

• If original issue price < buy back
• Dr. PIC Retirement or RE (if PIC (ret.)is $0
• Dr. PIC (original)
• Dr. Common stock (par)
• Cr. Treasury Stock (Cost)

• Dr. RE or Div
• Cr. Div Payable

• Dr. Div Payable
• Cr. Cash

• Dr. Property
• Dr./Cr. Loss or Gain
• Dr. R/E
• Cr. Div Payable

• Dr Div Pay
• Cr. Cash

• Dr. RE or Div
• Cr. C/S ditributable @par
• Cr. APIC
• *small <25% use MV
•  large > 25@ use par value

• Dr. C/S Distribuable
• Cr. Common Stock

• Object- no cash vs affortable Market share
• J/E- Dr RE, Cr C/S, APIC vs no entry footnote
• Total Stockholders equity- no change
• Contributed Capital- increase vs no change
• Par Value Per Share- no change vs reduce
• Shares O/S- increases
• Total Assets- no changes
• EPS decreases
• APIC increase vs no change

• Non-Cummulative- current year only
• Non- Participationg- ceiling on amounts paid
• Cumulative- money from arrears
• Participation= extra amounts during good times

• Eliminate B/P and related accounts; Credit C/S for par and APIC
• no gain o Loses plug APIC as necessary

• Dr. Pref Stock
• Dr. APIC-Pref Stock
• Cr Com Stock
• Cr APIC-Com Stock
• no gain or losses plug APIC

Allocate cash received to Bonds and Stock Warrants using Wtd Ave of their FMV

• Issueance:
• Dr. Cash
• Dr/Cr Dis/Pre on B/P
• Cr. PIC-SW