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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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.
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
Required: 1. How many common shares are outstanding on each cash dividend date? January 5 April 5 July 5 October 5 Outstanding common shares
h
Which of the following statements is true?a. The outstanding number of shares is the maximum number of shares that can beissued by a corporation.b. The shares that are in the hands of the stockholders are said to be outstanding.c. It is very unlikely that corporations will have more than one class of stock outstanding.d. Preferred stock is stock that has been retired.
Required information [The following information applies to the questions displayed below.] Raphael Corporation's common stock is currently selling on a stock exchange at $186 per share, and its current balance sheet shows the following stockholders' equity section: Preferred stock-5% cumulative, $_ par value, 1,000 shares $85,000 authorized, issued, and outstanding Common stock-$_ authorized, issued, and outstanding par value, 4,000 shares 200,000 330,000 Retained earnings 615,000 $ Total stockholders' equity
The charter of a corporation provides for the issuance of 118,000 shares of common stock. Assume that 44,000 shares were originally issued and 3,100 were subsequently reacquired. What is the amount of cash dividends to be paid if a $1-per-share dividend is declared? a.$44,000 b.$118,000 c.$40,900 d.$3,100

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