ABC Co has the following owners' equity accounts: Common stock, $1 par, 2,000,000 shares Preferred stock, $100, 4%, 10,000 shares Paid in capital in excess of par, CS Paid in capital in excess of par, PS Retained earnings Record the declaration and issuance of the following dividends: • $0.10/share cash dividend on the common stock $2,000,000 1,000,000 10,000,000 200,000 5,000,000 10% stock dividend on the common stock. Current stock price $13/share 50% stock dividend on the common stock Current stock price = $14/share
ABC Co has the following owners' equity accounts: Common stock, $1 par, 2,000,000 shares Preferred stock, $100, 4%, 10,000 shares Paid in capital in excess of par, CS Paid in capital in excess of par, PS Retained earnings Record the declaration and issuance of the following dividends: • $0.10/share cash dividend on the common stock $2,000,000 1,000,000 10,000,000 200,000 5,000,000 10% stock dividend on the common stock. Current stock price $13/share 50% stock dividend on the common stock Current stock price = $14/share
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter11: Stockholders' Equity
Section: Chapter Questions
Problem 11.1E
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Please dont provide solution in an image format thank you
![ABC Co has the following owners' equity accounts:
Common stock, $1 par, 2,000,000 shares
Preferred stock, $100, 4 %, 10,000 shares
Paid in capital in excess of par, CS
Paid in capital in excess of par, PS
Retained earnings
Record the declaration and issuance of the following dividends:
$0.10/share cash dividend on the common stock
.
$2,000,000
1,000,000
10,000,000
200,000
5,000,000
.
10% stock dividend on the common stock. Current stock price $13/share
50% stock dividend on the common stock Current stock price = $14/share
Assume the preferred stock is cumulative, and that dividends were not paid last year. The firm wishes
to distribute $100,000 in cash dividends. How would the dividends be split between the common and
preferred? (no entry; just the allocation amounts).
Assume the common stock has the following INDEPENDENT splits. After each split, what would be the
new number of shares and the new par value per share?
Split
New # of shares
New par value per share
2:1
5:2
10:1](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa573e566-7cc1-48db-a18d-39337f5c716a%2Fc9ba83da-2ff0-430d-bf23-79db5dbafc15%2Fngnf2bo_processed.jpeg&w=3840&q=75)
Transcribed Image Text:ABC Co has the following owners' equity accounts:
Common stock, $1 par, 2,000,000 shares
Preferred stock, $100, 4 %, 10,000 shares
Paid in capital in excess of par, CS
Paid in capital in excess of par, PS
Retained earnings
Record the declaration and issuance of the following dividends:
$0.10/share cash dividend on the common stock
.
$2,000,000
1,000,000
10,000,000
200,000
5,000,000
.
10% stock dividend on the common stock. Current stock price $13/share
50% stock dividend on the common stock Current stock price = $14/share
Assume the preferred stock is cumulative, and that dividends were not paid last year. The firm wishes
to distribute $100,000 in cash dividends. How would the dividends be split between the common and
preferred? (no entry; just the allocation amounts).
Assume the common stock has the following INDEPENDENT splits. After each split, what would be the
new number of shares and the new par value per share?
Split
New # of shares
New par value per share
2:1
5:2
10:1
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