Ch 10 Stockholders Equity

Another common term for stockholders' equity is:

shareholders' equity

T-balls, Inc. bought 1,000 shares of its own stock for $11 per share. Later it reissued all 1,000 shares for $10 per share. The effect of reissuing the treasury stock includes a(n):

decrease in additional paid-in capital of $1,000. increase in total assets of $10,000.

The total number of shares that a company may sell is referred to as ____________ shares.

authorized

True or false: The total net income earned by a corporation on behalf of its shareholders and not paid out as dividends is called retained earnings.

true

Shareholders' equity consists of which of the following items?

Amounts invested by shareholdersAmounts earned by the corporation

Refurbish, Inc. bought 1,000 shares of its own stock for $8,000. Later it resold the shares for $10,000. The effect of the sale of treasury stock on the accounting equation includes a(n)

$10,000 increase in stockholders' equity.

In year 1, Goal Corp. purchases 1,000 shares of treasury stock for $10 per share. In year 2, Goal reissues 500 shares of the treasury stock for $13 per share. In year 3, Goal reissues 200 shares of its treasury stock for $8 per share. The journal entry to record the reissuance of treasury stock in year 3 will include which of the following entries?

Debit additional paid-in capital $400.

Shareholders' equity is another common term fo__________ equity

owners

Bagel, Inc. issued 50,000 shares of the 100,000 authorized. It has since repurchased 5,000 of its shares. The number of shares outstanding equals ______ shares.

45000

represents a corporation's own stock that it has reacquired.

Treasury stock