Companies - Share issue / repurchase

Contributed Equity is normally of what nature in the General Ledger?

• Debit nature

• Credit nature

Shares issued for cash to directors will

• Dr Bank and Cr Retained Earnings

• Dr Bank and Cr Contributed Equity

• Dr Contributed Equity and Cr Bank

• Dr Retained Earnings and Dr Bank

Legal and prospectus fees associated with a share issue will

• Dr Bank and Cr Retained Earnings

• Dr Bank and Cr Contributed Equity

• Dr Contributed Equity and Cr Bank

• Dr Retained Earnings and Dr Bank

Repurchase of shares at a price lower than when they were initially purchased will

• Dr Bank and Cr Retained Earnings

• Dr Contributed Equity and Cr Retained Earnings and Bank

• Dr Contributed Equity and Retained Earnings and Cr Bank

• Dr Bank and Cr Contributed Equity

Repurchase of shares at a price higher than when they were initially purchased will

• Dr Bank and Cr Retained Earnings

• Dr Contributed Equity and Cr Retained Earnings and Bank

• Dr Contributed Equity and Retained Earnings and Cr Bank

• Dr Bank and Cr Contributed Equity

A share issue of 200,000 shares at $1 per share and a brokerage fee of 5% will

• Dr Bank $200,000 and Cr Contributed Equity $200,000

• Dr Bank $190,000 and Cr Contributed Equity $190,000

• Dr Contributed Equity $200,000 and Cr Bank $200,000

• Dr Contributed Equity $190,000 and Cr Bank $190,000

Retained Earnings is normally of what nature in the General Ledger?

• Debit nature

• Credit nature

If there were 300,000 shares issued and the contributed equity was $900,000 the share price would be

• $1.00

• $2.00

• $3.00

• $9.00

Just for fun. People buy me to eat, but never eat me. What am I? A . . . .

Reasons for a share repurchase includes

• to improve earnings per share

• to increase the share price on the stock exchange

• to buy out a dissident minority

• all of the above