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Cambridge Business Publishers Chapter 11 Stockholders' Equity O Ca 3. Kate also wishes to pay dividends on both her common shares and the preferred stock. She is Explain the difference between a cash dividend and a stock dividend. Since Kate is the only stock holder of the common stock, what would be the effect of issuing a 10 percent stock dividend? 4. Kate decides to issue cash dividends on both the common stock and the preferred stock. Currently there are 50 outstanding preferred shares and 500 common shares outstanding. The dividends tha Kate paid were $6 per share on the preferred shares and $2 per share on the common shares. a little confused between cash and stock dividends. Provide the journal entry for the payment of the cash dividends. 5. Kate's Cards has a net income of $1,500 for the current month of August 2019. Kate had decided that the business will have a fiscal year-end of August 31, so this is the completion of the com- pany's first year. Kate will be preparing her annual financial statements; however, she would like to see a monthly statement of retained earnings for August 2019. In addition, she wo to see how the stockholders'equity section of the balance sheet will look after the addition of the preferred stock. The stockholders' equity section from July 2019 is shown below: Stockholders' Equity Common stock (5,000 shares authorized, 500 shares issued and outstanding) Paid-in capital in excess of par value-common stock. Retained earnings $ 500 9,500 15,000 $25,000 Total stockholders' equity. . Prepare a statement of retained earnings for the month of August 2019 and the stockholders equity section of the balance sheet as of August 31, 2019.

Cambridge Business Publishers Chapter 11 Stockholders' Equity O Ca 3. Kate also wishes to pay dividends on both her common shares and the preferred stock. She is Explain the difference between a cash dividend and a stock dividend. Since Kate is the only stock holder of the common stock, what would be the effect of issuing a 10 percent stock dividend? 4. Kate decides to issue cash dividends on both the common stock and the preferred stock. Currently there are 50 outstanding preferred shares and 500 common shares outstanding. The dividends tha Kate paid were $6 per share on the preferred shares and $2 per share on the common shares. a little confused between cash and stock dividends. Provide the journal entry for the payment of the cash dividends. 5. Kate's Cards has a net income of $1,500 for the current month of August 2019. Kate had decided that the business will have a fiscal year-end of August 31, so this is the completion of the com- pany's first year. Kate will be preparing her annual financial statements; however, she would like to see a monthly statement of retained earnings for August 2019. In addition, she wo to see how the stockholders'equity section of the balance sheet will look after the addition of the preferred stock. The stockholders' equity section from July 2019 is shown below: Stockholders' Equity Common stock (5,000 shares authorized, 500 shares issued and outstanding) Paid-in capital in excess of par value-common stock. Retained earnings $ 500 9,500 15,000 $25,000 Total stockholders' equity. . Prepare a statement of retained earnings for the month of August 2019 and the stockholders equity section of the balance sheet as of August 31, 2019.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Cambridge Business Publishers Chapter 11 Stockholders' Equity O Ca 3. Kate also wishes to pay dividends on both her common shares and the preferred stock. She is Explain the difference between a cash dividend and a stock dividend. Since Kate is the only stock holder of the common stock, what would be the effect of issuing a 10 percent stock dividend? 4. Kate decides to issue cash dividends on both the common stock and the preferred stock. Currently there are 50 outstanding preferred shares and 500 common shares outstanding. The dividends tha Kate paid were $6 per share on the preferred shares and $2 per share on the common shares. a little confused between cash and stock dividends. Provide the journal entry for the payment of the cash dividends. 5. Kate's Cards has a net income of $1,500 for the current month of August 2019. Kate had decided that the business will have a fiscal year-end of August 31, so this is the completion of the com- pany's first year. Kate will be preparing her annual financial statements; however, she would like to see a monthly statement of retained earnings for August 2019. In addition, she wo to see how the stockholders'equity section of the balance sheet will look after the addition of the preferred stock. The stockholders' equity section from July 2019 is shown below: Stockholders' Equity Common stock (5,000 shares authorized, 500 shares issued and outstanding) Paid-in capital in excess of par value-common stock. Retained earnings $ 500 9,500 15,000 $25,000 Total stockholders' equity. . Prepare a statement of retained earnings for the month of August 2019 and the stockholders equity section of the balance sheet as of August 31, 2019.
Transcribed Image Text:Cambridge Business Publishers Chapter 11 Stockholders' Equity O Ca 3. Kate also wishes to pay dividends on both her common shares and the preferred stock. She is Explain the difference between a cash dividend and a stock dividend. Since Kate is the only stock holder of the common stock, what would be the effect of issuing a 10 percent stock dividend? 4. Kate decides to issue cash dividends on both the common stock and the preferred stock. Currently there are 50 outstanding preferred shares and 500 common shares outstanding. The dividends tha Kate paid were $6 per share on the preferred shares and $2 per share on the common shares. a little confused between cash and stock dividends. Provide the journal entry for the payment of the cash dividends. 5. Kate's Cards has a net income of $1,500 for the current month of August 2019. Kate had decided that the business will have a fiscal year-end of August 31, so this is the completion of the com- pany's first year. Kate will be preparing her annual financial statements; however, she would like to see a monthly statement of retained earnings for August 2019. In addition, she wo to see how the stockholders'equity section of the balance sheet will look after the addition of the preferred stock. The stockholders' equity section from July 2019 is shown below: Stockholders' Equity Common stock (5,000 shares authorized, 500 shares issued and outstanding) Paid-in capital in excess of par value-common stock. Retained earnings $ 500 9,500 15,000 $25,000 Total stockholders' equity. . Prepare a statement of retained earnings for the month of August 2019 and the stockholders equity section of the balance sheet as of August 31, 2019.
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