Columbia Paper has the following stockholders' equity account. The firm's common stock has a current market price of $31 per share. Preferred stock $90,000 Common stock ( 11,000 shares at $4 par) $44,000 Paid-in capital in excess of par $297,000 Retained earnings $120,000 Total stockholders' equity $551,000 a. Show the effects on Columbia of a 15% stock dividend. b. In light of part a, discuss the effects of stock dividend on stockholders' equity.

Columbia Paper has the following stockholders' equity account. The firm's common stock has a current market price of $31 per share. Preferred stock $90,000 Common stock ( 11,000 shares at $4 par) $44,000 Paid-in capital in excess of par $297,000 Retained earnings $120,000 Total stockholders' equity $551,000 a. Show the effects on Columbia of a 15% stock dividend. b. In light of part a, discuss the effects of stock dividend on stockholders' equity.

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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The market value balance sheet for Briggs Manufacturing is shown here. The company has declared a 20 percent stock dividend. The stock goes ex dividend tomorrow (the chronology for a stock dividend is similar to that for a cash dividend). There are 28,000 shares of stock outstanding. Market Value Balance Sheet Cash $ 181,000 Debt $ 353,800 Fixed assets 1,080,000 Equity 907,200 Total $ 1,261,000 Total $ 1,261,000 What will the ex-dividend price be?
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