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-   -   Question on Common stock (https://www.askmehelpdesk.com/showthread.php?t=588244)

  • Jul 19, 2011, 06:04 AM
    Monica1966
    Question on Common stock
    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
  • Jul 19, 2011, 06:37 AM
    Just Looking

    I agree with your choice.
  • Jul 19, 2011, 07:42 AM
    Monica1966
    Comment on Just Looking's post
    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
  • Jul 19, 2011, 08:29 AM
    Just Looking

    I'm not finding a great site, but here are a couple to look at.

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


    Pooling Method

    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

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