PDA

View Full Version : Question on Common stock


Monica1966
Jul 19, 2011, 06:04 AM
I have a question on transaction for common stock

If I have 10,000 shares of $10 par value common stock,Authorized and outstanding.Company wants to call in the $10 par value stock and replace each share with two shares of new $5 par value common stock issue. This transaction will increase

1. the number of shares outstanding
2. the total stockholders equity
3. retained earings
4. stock dividends distributable

I read over all my text and the only one I come up with that would be right is a. the number of shares outstanding
Could anyone tell me if I am doing this right
Thanks

Just Looking
Jul 19, 2011, 06:37 AM
I agree with your choice.

Monica1966
Jul 19, 2011, 07:42 AM
Would you have a websight to recommend to me for consolidation statements. To help me understand it more.. I know you have to combined everything as 1 business,But I seem to get them all confused and messed up.
The different methods that can be used pooling of interestand purchase method are confusing to me..
Thanks for your help

Just Looking
Jul 19, 2011, 08:29 AM
I'm not finding a great site, but here are a couple to look at.

http://gbr.pepperdine.edu/2010/08/the-battle-over-merger-accounting/ This one will give you a comparison of the two methods which I think is what might be confusing you.


Pooling Method (http://www.cord.edu/faculty/bfoss/Pooled.htm)

Business Combination: Purchase Method Fundamentals | Accounting-financial-tax.com offers bookkeeping journal entry basic accounting financial accounting management accounting tax accounting cash management accounting cost accounting financial ratio b (http://accounting-financial-tax.com/2010/03/business-combination-purchase-method-fundamentals/)