Landry Inc. has 10,000 shares of commonstock, $1 par outstanding. On September30, 2020, Landry declaresa stock split effected in the form of a100% stock dividend when the fair valueof its common stock is $30 pershare. Distribution of the dividend will beon October 15, 2020.a. Prepare the journal entry for thedeclaration of the stock dividend onSeptember 30, 2020.b. Prepare the journal entry for thedistribution of the stock dividend onOctober 15, 2020

A stock dividend is a corporate action in which a company distributes additional shares of its own…

Answered: a. Prepare the journal entry for the…

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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1. Spark has paid the following dividends during 2021-2022: Date 9 April 2021 1 October 2021 8 April 2022 7 October 2022 The price of Spark shares at the start of 2021, 2022, and 2023 are Date 5 January 2021 5 January 2022 4 January 2023 (a) What is the HPR for 2021? What is the HPR for 2022? Dividend 12.5c 12.5c 12.5c 12.5c Price 4.80 4.49 5.34
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Comparative Statements of Shareholders' Equity for Locke Intertechnology Corporation were reported as follows for the fiscal years ending December 31, 2019, 2020, and 2021. Balance at January 1, 2019 sale of preferred shares sale of common shares, 7/1 Cash dividend, preferred Cash dividend, common Net income Balance at December 31, 2019 Retirement of common shares, 4/11 Cash dividend, preferred Cash dividend, common 3-for-2 split effected in the form of a common stock dividend, 8/12 Net income Balance at December 31, 2020 18% common stock dividend, 5/1 sale of common shares, 9/1 Cash dividend, preferred Cash dividend, common Net income Balance at December 31, 2021 Year 2019 2020 2021 LOCKE INTERTECHNOLOGY CORPORATION statements of shareholders' Equity For the Years Ended Dec. 31, 2019, 2020, and 2021 ($ in millions) Numerator / Denominator = Earnings per share 1 1 1 = Preferred stock, $10 par 12 12 12 $12 Common stock, $1 par 80 $ 11 91 (4) 43.5 130.5 13.05 3 $146.55 Additional Paid-in…
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Match the following stockholders' equity concepts to the appropriate term (a-h). Question 12 options: Cash distribution of a company’s earnings to stockholders The date when dividends are actually distributed to stockholders Shares of common stock that were issued and then reacquired by a company Account used when shares are issued for an amount greater than par value The day of the event that creates a liability to company Equity account reflecting shares “owed” to stockholders Owners of this class of stock are entitled to receive dividends first The date that is used to determine the owners of stock who will receive the current dividend 1. cash dividend 2. date of record 3. Stock Dividends Distributable 4. date of declaration 5. treasury stock 6. preferred stock 7. date of payment 8. Paid-In Capital in Excess of Par
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XYZ stock price and dividend history are as follows: Dividend Paid at Year-End $5 Year 2018 2019 2020 2021 Beginning-of- Year Price $ 130 144 120 125 An investor buys six shares of XYZ at the beginning of 2018, buys another three shares at the beginning of 2019, sells one share at the beginning of 2020, and sells all eight remaining shares at the beginning of 2021. Required: a. What are the arithmetic and geometric average time-weighted rates of return for the investor? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Arithmetic time-weighted average returns Geometric time-weighted average returns 5 5 5 Date b-1. Prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2018, to January 1, 2021. (Negative amounts should be indicated by a minus sign.) Cash Flow % %

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a. Prepare the journal entry for the declaration of the stock dividend on 30, 2020. September b. Prepare the journal entry for the distribution of the stock dividend on October 15, 2020