21) Below note the Shareholders' Equity account of Goodman Company at the beginning of March 5: Common Stock--$10 par value, 800,000 shares authorized, 80,000 shares issued and outstanding Paid-in Capital in Excess of Par value, common stock Retained Earnings $ 800,000 $ 300,000 $ 400,000 $ 1,500,000 Total Stockholders' Equity On March 5, the directors declared a 20% stock dividend distributable on March 28 to the shareholders of record on March 15. The stock's market value is $30 per share on March 5 before the stock dividend. Which of the following statements is accurate regarding the Journal Entry on March 5? A) The number of additional common shares is 16,000 and Paid-in Capital in excessive of par, Common Stock is credited $160,000 B) The number of additional common shares is 16,000 and Retained Earnings is debited $480,000 C) The number of additional common shares is 80,000 and Retained Earnings is debited $480,000 D) The number of additional common shares is 80,000 and Retained Earnings is debited $240,000

21) Below note the Shareholders' Equity account of Goodman Company at the beginning of March 5: Common Stock--$10 par value, 800,000 shares authorized, 80,000 shares issued and outstanding Paid-in Capital in Excess of Par value, common stock Retained Earnings $ 800,000 $ 300,000 $ 400,000 $ 1,500,000 Total Stockholders' Equity On March 5, the directors declared a 20% stock dividend distributable on March 28 to the shareholders of record on March 15. The stock's market value is $30 per share on March 5 before the stock dividend. Which of the following statements is accurate regarding the Journal Entry on March 5? A) The number of additional common shares is 16,000 and Paid-in Capital in excessive of par, Common Stock is credited $160,000 B) The number of additional common shares is 16,000 and Retained Earnings is debited $480,000 C) The number of additional common shares is 80,000 and Retained Earnings is debited $480,000 D) The number of additional common shares is 80,000 and Retained Earnings is debited $240,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On June 30, Sharper Corporation’s stockholders' equity section of its balance sheet appears as follows before any stock dividend or split. Sharper declares and immediately distributes a 50% stock dividend. Common stock—$10 par value, 74,000 shares issued and outstanding $ 740,000Paid-in capital in excess of par value, common stock 320,000Retained earnings 720,000Total stockholders’ equity $ 1,780,000 Assume that instead of distributing a stock dividend, Sharper did a 3-for-1 stock split. (1) Prepare the updated stockholders' equity section after the split. (2) Compute the number of shares outstanding after the split. Complete this question by entering your answers in the tabs below. Required 1Required 2Prepare the updated stockholders' equity section after the split. SHARPER CORPORATIONStockholders’ Equity Section of the Balance SheetJune 30Total stockholders’ equity $0
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