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:

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 5E: Stock Dividend Comparison Although Oriole Company has enough retained earnings legally to declare a...

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Stock Dividend Comparison 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 $34 per share. The following is Oriole's current shareholders' equity: Common stock, $10 par Additional paid-in capital on common stock Total contributed capital $400,000 800,000 $1,200,000 1,300,000 $2,500,000 Retained earnings Total shareholders' equity Required: 1. Assuming a 15% stock dividend is declared and issued, prepare the shareholders' equity section immediately after the date of issuance. Oriole Company Stockholders' Equity Common stock, $10 par Additional paid-in capital on common stock Total contributed capital Retained earnings Total shareholders' equity 2. Assuming, instead, that a 30% stock dividend is declared and issued, prepare the shareholders' equity section immediately after the date of issuance. Oriole…
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