Statement of stockholders equity a summary of the

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Statement of stockholders' equity A summary of the transactions affecting the accounts in the stockholders' equity section of the balance sheet during a stated period of time. Stock Dividend Distributable—Common account The stockholders' equity (paid-in capital) account that is credited for the par or stated value of the shares distributable when recording the declaration of a stock dividend. Stock dividends Dividends that are payable in additional shares of the declaring corporation's capital stock. Stock split A distribution of 100 percent or more of additional shares of the issuing corporation's stock, accompanied by a corresponding reduction in the par value per share. The purpose of a stock split is to cause a large reduction in the market price per share of the outstanding stock. Treasury stock Shares of capital stock issued and reacquired by the issuing corporation; they have not been formally canceled and are available for reissuance. SELF-TEST The retained earnings balance of a corporation is part of its paid-in capital.
The purchase of treasury stock does not affect stockholders' equity.
Dividends are expenses since they decrease stockholders' equity.
A stock dividend reduces the retained earnings balance and permanently capitalizes the reduced portion of the retained earnings.
A retained earnings appropriation reduces the total stockholders' equity shown on the balance sheet.
Heavy frost damage suffered by a Florida citrus grower's orange trees would probably be reported as an extraordinary item.
MULTIPLE CHOICE Which of the following is not included in paid-in capital?
Bevins Company issued 10,000 shares of USD 20 par value common stock at USD 24 per share. Bevins reacquired 1,000 shares of its own stock at a cost of USD 30 per share. The entry to record the reacquisition is:

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