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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A company with 95,000 authorized shares of $7 par common stock issued 42,000 shares at $16. Subsequently, the company declared a 2% stock dividend on a date when the market price was $34 per share. What is the amount transferred from the retained earnings account to paid-in capital accounts as a result of the stock dividend?
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
Kohler Corporation reports the following components of stockholders' equity at December 31 of the prior year. Common stock-$10 par value, 100,000 shares authorized, 50,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity During the current year, the following transactions affected its stockholders' equity accounts. January 2 Purchased 5,000 shares of its own stock at $20 cash per share. January 5 Directors declared a $4 per share cash dividend payable on February 28 to the February 5 stockholders of record. February 28 Paid the dividend declared on January 5. July 6 Sold 2,500 of its treasury shares at $24 cash per share. August 22 Sold 2,500 of its treasury shares at $16 cash per share. September 5 Directors declared a $4 per share cash dividend payable on October 28 to the September 25 stockholders of record. October 28 Paid the dividend declared on September 5. December 31 Closed the $428,000 credit…
Global Corporation had 60,000 shares of $20 par value common stock outstanding on July 1. Later that day the board of directors declared a 10% stock dividend when the market value of each share was $30. The entry to record the dividend declaration is: Multiple Choice Debit Retained Earnings $180,000; credit Cash $180,000. Debit Retained Earnings $180,000; credit Common Stock Dividend Distributable $120,000; credit Paid-In Capital in Excess of Par Value, Common Stock $60,000. Debit Retained Earnings $120,000; credit Common Stock Dividend Distributable $120,000. No entry is made until the stock is issued. Debit Retained Earnings $180,000; credit Common Stock Dividend Distributable $180,0000.
The stockholders' equity section of Jun Company's balance sheet as of April 1 follows. On April 2, Jun declares and distributes a 10% stock dividend. The stock's per share market value on April 2 is $20 (prior to the dividend). Common stock-$5 par value, 375,000 shares authorized, 200,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity Prepare the stockholders' equity section immediately after the stock dividend is distributed. Total paid-in capital JUN COMPANY Stockholders' Equity April 2 (after stock dividend) Total stockholders' equity $ $ 1,000,000 600,000 833,000 $ 2,433,000 0
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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, 120,000 shares authorized, 88,000 shares issued and outstanding $ 880,000 Paid-in capital in excess of par value, common stock 390,000 Retained earnings 755,000 Total stockholders’ equity $ 2,025,000 Required: (1) Prepare the updated stockholders' equity section after the distribution is made.(2) Compute the number of shares outstanding after the distribution is made.
The stockholders’ equity section of Day Corporation’s balance sheet at January 1 follows: Common stock, $10 par value, 200,000 shares authorized,27,000 shares $270,000 issued, 8,000 shares are in the treasury Additional paid-in capital In excess of par value $315,000 From treasury stock 18,000 333,000 Retained earnings 298,000 901,000 Less: Treasury stock (8,000 shares) at cost 208,000 Total Stockholders' Equity $693,000 The following transactions affecting stockholders’ equity occurred during the year: Jan. 8 Issued 10,000 shares of previously unissued common stock for $27 cash per share. Mar. 12 Sold all of the treasury shares for $30 cash per share. June 30 Declared a six percent stock dividend on all outstanding shares of common stock. The market value of the stock was $40 per share. July 10 Issued the stock dividend declared on June 30. Oct. 7 Acquired 1,500 shares of common stock as treasury stock at $32 cash per share.…
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The stockholders' equity section of Ivanhoe Corporation at December 31 is as follows: Paid-in capital Preferred stock, cumulative, 17,500 shares authorized, 13,500 shares issued and outstanding Common stock, $3 par, 760,000 shares authorized, 515,000 shares issued Paid-in capital in excess of par - common Total paid-in capital Retained earnings IVANHOE CORPORATION Balance Sheet (partial) Total paid-in capital and retained earnings Less: Treasury stock (19,500 common shares) Total stockholders' equity (a) From a review of the stockholders' equity section, as chief accountant, answer the following questions. How many shares of common stock are outstanding? Common stock outstanding $1,350,000 1,545,000 206,000 3,101,000 1,873,000 4,974,000 107,250 $4,866,750 shares
Subjects:
On July 1, Jones Corporation had the following capital structure: Common Stock, par $1; 8,000,000 authorized shares, 165,000 issued and outstanding $ 165,000 Additional Paid-in Capital 109,000 Retained Earnings 189,000 Treasury Stock None Required:Complete the following table based on two independent cases involving stock transactions: (Round "per share" answers to 2 decimal places.) Case 1: The board of directors declared and issued a 100 percent stock dividend when the stock price was $6 per share. Case 2: The board of directors voted a 2-for-1 stock split. The stock price prior to the split was $6 per share.