Stock Dividend ComparisonAlthough Oriole Company has enough retained earnings legally to declare a dividend, its working capital is low. The board of directors is considering a stock dividend instead of a cash dividend. The common stock is currently selling at $33share. The following is Oriole's current shareholders' equity:Common stock, $10 par$500,0001,000,000Additional paid-in capital on common stockTotal contributed capital$1,500,000Retained earnings1,200,000$2,700,000Total shareholders' equityRequired:1. Assuming a 15% stock dividend is declared and issued, prepare the shareholders' equity section immediately after the date of issuance.Oriole CompanyStockholders' EquityCommon stock, $10 parAdditional paid-in capital on common stockTotal contributed capitalRetained earningsTotal shareholders' equity2. Assuming, instead, that a 30% stock dividend is declared and issued, prepare the shareholders' equity section immediately after the date of issuance.Oriole CompanyShareholders' EquityCommon stock, $10 parAdditional paid-in capital on common stockTotal contributed capitalRetained earningsTotal shareholders' equity00000

1. Oriole Company Stockholders Equity Common Stock $10 Par 575,000…

Although Oriole Company has enough retained earnings legally to declare a dividend, its working capital is low. The board of directors is considering a stock dividend instead of a cash dividend. The common stock is currently selling at $3 share. The following is Oriole's current shareholders' equity:

Although Oriole Company has enough retained earnings legally to declare a dividend, its working capital is low. The board of directors is considering a stock dividend instead of a cash dividend. The common stock is currently selling at $3 share. The following is Oriole's current shareholders' equity:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The Crestar Company reported net income of $142,600 on 26,000 average outstanding common shares. Preferred dividends total $12,600. On the most recent trading day, the preferred shares sold at $56 and the common shares sold at $86. What is this company's current price-earnings ratio? (Do not round your intermediate calculations.) Multiple Choice 15.68 17.20 18.23 None of these answers are correct.
Required: Calculate the 11 missing amounts. (Loss should be indicated by a minus sign.)Except for the earnings per share statistics, the 2022, 2023, and 2024 income statements for Ace Group Inc. were originally presented as follows: Required: 1. Calculate the 11 missing amounts. (Loss should be indicated by a minus sign.) Calculate the weighted-average number of common shares outstanding during the following years: (Do not round intermediate calculations. Round your answers to nearest whole number.) 3. Prepare the earnings per share income statement presentation during the following years: (Round your answers to 2 decimal places. Negative amounts should be indicated by a minus sign.)
Daisy Corp. recently completed a 2-for-1 stock split. Before the split, the company had 10,000,000 shares outstanding and its stock price was P150 per share. After the split, the total market value of the company’s stock equaled P1.5 billion. The total share capital balance of Daisy Corp. is P350,000,000. 1. What was the price of the company’s stock following the stock split? 2. Determine the new par value of each share.
Regarding cumulative preferred share dividend payments by corporations, which of the following is typically most accurate? Select one: O a. No dividend payment will be made until 120 days after fiscal year end O b. No common share dividends can be paid until any arrears on the cumulative preferred share dividends are caught up O c. Default will not arise even if the dividend payment has not been made after declaration date O d. There is no such thing as dividends on cumulative preferred shares O e. The dividends are paid only to those on record after "record date"
Pares
National Company has 100,000 shares outstanding and just declared a 2-for-1 stock split. Before the announcement, the firm's shares were trading at P60.00 per share. After the stock dividend, the firm's shares should trade at ________ per share.
A company issues 10,000 shares of its own $10 par value common stock to the public for $19 per share. Later, 1, 000 of these shares are bought for $21 per share as treasury stock. Which of the Losses on the resale of these shares would impact reported net income for the year although gains would not The par value method and the cost method have the same total impact on stockholders equity Because this is a stock transaction, retained earnings cannot be affected by a re - issuance of these shares
To reduce its stock price, Shriver Food Systems, Inc., declared and issued a 100 percent stockdividend. The company has 800,000 shares authorized and 200,000 shares outstanding. The parvalue of the stock is $1 per share and the market value is $100 per share. Prepare the journal entryto record this large stock dividend.
/ Tree House Foods(THS), Inc. has the following shareholders’ equity account is as follows:SI No Item Value1 Common stock (at par value) $ 2,000,0002 Additional paid - in capital 1,600,0003 Retained earnings 8,400,0004 shareholders’ equity $12,000,000The current market price of the stock is $60 per share and par value of the share is $8. A. At what price will THS, Inc. share will sell after the 20% stock dividend?i. In the absence of an informational or signalling effect,ii. If there were a signalling effect
Please answer in good accounting form. Thankyou 1. What amount of retained earnings should be appropriated as a result of the given transactions?
Nativity is a relatively small, privately owned firm. Last year the company had after-tax income of $15,000 and 10,000 shares were outstanding. The owners were tying to determine the value of the stock before prior to taking the company public. A similar firm that is publicly traded, had a P/E ratio of 5. Estimate the market value of one share the Nativity’s stock.