4. An owner of 2,500 shares of Simmons Company common stock receives a stockdividend of 50 shares.a. What is the effect of the stock dividend on the stockholder's proportionateinterest (equity) in the corporation?b. How does the total equity of 2,550 shares compare with the total equity of 2,500shares before the stock dividend?5. a. Where should a declared but unpaid cash dividend be reported on the balancesheet?b. Where should a declared but unisshed stock dividend be reported on the balancesheet?

Company means a form of business where the share holder invest money in business in form of shares…

Answered: 4. An owner of 2,500 shares of Simmons…

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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Similar questions

The charter of a corporation provides for the issuance of 106,898 shares of common stock. Assume that 42,395 shares were originally issued and 4,642 were subsequently reacquired. What is the amount of cash dividends to be paid if a $2-per-share dividend is declared? a.$42,395 b.$106,898 c.$4,642 d.$75,506
.
From page 10-1 of the VLN, what is the difference between issued shares and outstanding shares? A. Authorized shares. B. Unissued share. C. Treasury shares. D. There is no difference between issued shares and outstanding shares.
Question 3.) A corporation issues 2,500 shares of common stock for P45,000. The stock has stated value of P10 per share. The journal entry to record the stock issuance would include a credit to Additional Paid in Capital of? A. P45,000 B. P25.000 C. P20,000 D. P5,000
A corporation purchases 9,515 shares of its own $10 par common stock for $18 per share, recording it at cost. What will be the effect on total stockholders' equity? a.decrease by $171,270 b.increase by $171,270 c.decrease by $76,120 d.increase by $76,120
The charter of a corporation provides for the issuance of 94,560 shares of common stock. Assume that 42,608 shares were originally issued and 3,393 were subsequently reacquired. What is the amount of cash dividends to be paid if a $2-per-share dividend is declared? a.$42,608 b.$94,560 c.$3,393 d.$78,430
The charter of a corporation provides for the issuance of 108,244 shares of common stock. Assume that 44,779 shares were originally issued and 4,084 were subsequently reacquired. What is the amount of cash dividends to be paid if a $2-per-share dividend is declared? a. $4,084 b. $44,779 c. $108,244 d. $81,390
Super Co is a corporation with common stock. They have an investor who paid $1,000 for 500 of their $1 par stock. How would this be reflected in the equity section of the balance sheet? O Increase of Common Stock for $1,000 Increase of Common Stock for $500 and Additional Paid in Capital for $500 O O Increase of Common Stock for $500 Increase of Additional Paid in Capital for $1,000 O
A corporation declares $32 million in net income, $4 million in preferred stock dividends, and $8 million in common stock dividends. By how much will shareholders' equity increase on the balance sheet?
Required: 1. How many common shares are outstanding on each cash dividend date? January 5 April 5 July 5 October 5 Outstanding common shares
7) What account should you debit when you declare a 2: 1 stock split on 100,000 common shares outstanding, par value is $2/share and selling price is $100/sh?
h

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