### Educational Analysis of Stock Dividend Declaration**Background Information:**- **Common Stock Details:** - Par value: $1 - Authorized shares: 8 million - Issued and outstanding shares: 3 million - Values recorded on the balance sheet: - Common stock: $3,000,000 - Paid-in capital—excess of par: $12,000,000 - Retained earnings: $14,000,000**Scenario:**- On April 1, 2021, Core Technologies' board of directors declared a 10% stock dividend on common shares, effective for distribution on June 1. - Market price: - April 1, 2021: $30 per share - June 1, 2021: $40 per share**Task Requirements:**- Calculate the stock dividend and record the necessary journal entries for both declaration and distribution.**Calculation Table Explanation:**1. **Number of Outstanding Shares:** - Starting point: 3 million shares2. **Stock Dividend Percentage:** - Applied Percentage: 10%3. **Number of Shares to Be Issued:** - Calculation: 10% of 3 million = 300,000 shares4. **Value of Stock Dividend:** - Assuming the current market price on April 1 ($30 per share): - Total value: 300,000 shares x $30 = $9,000,000**Next Steps:**- Complete the table with the appropriate figures based on the market values provided and prepare journal entries to accurately reflect the changes in the equity structure of the company.This activity involves understanding how stock dividends impact financial statements and provides practical experience in preparing journal entries for corporate transactions.

Stock Dividend Number of outstanding shares 3,000,000 Stock Dividend % 10% Number of shares…

Answered: Common stock, $1 par; authorized, 8…

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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XYZ Corporation reported the following shareholders equity on December 31, 2021 8% cumulative preference share capital, P50 par, liquidating value P55 per share, 20,000 shares authorized, issued and outstanding Ordinary share capital, P25 par, 200,000 shares authorized, 100,000 shares issued and outstanding Retained Earnings- P400,000 Dividends on preference shares have been paid through 2019 but have not been declared for 2020 and 2021 On December 31, 2021, what is the book value per ordinary share?
Supper Company Ltd., reported the following stockholders’ equity on its balance sheet at June 30, 2021: Supper Company Ltd. Stockholders’ Equity June 30,2021 Paid-in Capital Preferred stock, 10%,? par, 650,000 shares authorized, 280,000 shares issued $ 1,400,000 Common stock, par value $? per share, 5,000,000 shares authorized, 1,000,000 shares issued and outstanding 2,000,000 Paid-in capital in excess of par—common 6,000,000 Which of the following is the correct par value for the company’s preferred stock? Question 1Answer a. $140,000 b. $2.15 c. $65,000 d. $5
Arabian Gulf Corporation reports the following stockholders' equity section on December 31, 2020 - Common stock; $10 par value; 500,000 shares authorized; 200,000 shares issued and outstanding - Paid in capital in excess of par value, common stock - Retained earnings..... $2,000,000 400,000 900,000 $3,300,000 Total The Corporation completed the following transactions in 2021. 1- Jan. 10, Directors declared a $1 per share cash dividend payable on March 15 to the Jan. 31 stockholders of record. 2- Mar. 01, Purchased 10,000 shares of its own common for $15 per share. 3- Mar. 15, Paid the cash dividend declared on Jan. 10. 4- May 01, Sold 6,000 of its treasury shares at $15 cash per share. 5- Sep. 30, Directors declared a 30% stock dividend when the share market price is $16. 6- Nov. 01, Distributed stock dividends declared on Sep. 30. 7-Nov. 15, The company implemented 5-for-1 stock split for the common stock. Required: Prepare journal entries to record each of these transactions for…
On January 01, 2021, Pagaduan Corporation provided you the following information: Ordinary share capital, 500,000 shares issued, P20 par 10,000,000 Share premium - ordinary shares 4,000,000 Retained earnings 5,700,000 Share capital transactions for the year 2021: March 10 - Reacquired 80,000 ordinary shares at P30 per share April 20 - Reissued 28,000 ordinary treasury shares at P38 per share April 25 - Reissued 27,000 ordinary treasury shares at P22 per share May 13 - Retired 25,000 ordinary treasury shares. Journal entry on April 25 should include: a. Credit to Share premium - ordinary shares – P54,000 b. Debit to Share premium – Treasury shares – P216,000 c. Debit to Retained Earnings - P216,000 d. Credit to Treasury shares – P540,000
What is the total balance of RETAINED EARNINGS account as of December 31, 2020
National Supply's shareholders' equity included the following accounts at December 31, 2020: $ Shareholders' Equity Common stock 6,000,000 shares $1 par $6,000,000 Paid-in Capital in excess of par $30,000,000 Retained earnings $6,500,000 REQUIRED: 1. National Supply reacquired shares of its common stock in two separate transactions and later sold shares. Prepare the entries for each of the transactions 15-Feb-21 Reacquired 300,000 shares at $8 per share 17-Feb- 22 Reacquired 300,000 shares at $5.50 per share 9-Nov-23 Sold 200,000 shares at $7 per share 2. Prepare the shareholders' equity section of National Supply's balance sheet at December 31, 2023, assuming the shares are a) retired and b) accounted for as treasury stock. Net income was $14,000,000 in 2021 $15,000,000 in 2022 $16,000,000 in 2023
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1. The balance sheet of Quetico Inc. reported the following at December 31, 2020: A Shareholders' Equity B C Preferred shares, $0.40, 10,000 shares authorized 2 and issued $ 100,000 3 Common shares, 100,000 shares authorized* 400,000 45 Accumulated other comprehensive income Retained earnings 224,000 476,500 6 Total shareholders' equity 7 $ 1,200,500 *The common shares were issued at a stated value of $8.00 per share. Requirements a. Are the preferred shares cumulative or non-cumulative? How can you tell? b. What is the total amount of the annual preferred dividend? c. How many common shares are outstanding? d. Compute the book value per share of the common shares. No preferred dividends are in arrears, and Quetico Inc. has not yet declared the 2020 dividend..
12. On Jan. 1, 2019, Giron Corp. reported the following on its shareholders' equity section: Ordinary Shares, P5 par value, authorized 200,000 shares, issued 100,000 shares Share Premium-Ordinary Retained Earnings P 500,000 1,500,000 516,000 P2,516,000 Treasury Stock, at cost, 5,000 shares Total Shareholders' Equity (40,000) P2,476,000 The following events occurred in 2019: May 1: July 9: 1,000 shares of treasury stock were sold for P10,000. 10,000 shares of previously unissued ordinary shares were sold for P12 per share. Oct. 1: The distribution of a 2-for-1 share split resulted in the ordinary shares' per share par value being halved. Giron accounts for treasury stock under the cost method. On Dec. 31, 2019, the total par value of the issued ordinary shares should be а. P550,000. P518,000. P291,000. d. P530,000. C.
Arabian Gulf Corporation reports the following stockholders' equity section on December 31, 2020. - Common stock; $10 par value; 700,000 shares authorized; 300,000 shares issued and outstanding..... -Paid in capital in excess of par value, common stock $3,000,000 -Retained earnings... 400,000 900,000 Total $4,300,000 The Corporation completed the following transactions in 2021. - Jan. 10, Directors declared a $1 per share cash dividend payable on March 15 to the Jan. 31 stockholders of record. - Mar. 01, Purchased 30,000 shares of its own common for $15 per share. -Mar. 31, Paid the cash dividend declared on Jan. 10. May 01, Sold 10,000 of its treasury shares at $15 cash per share. -Sep. 30, Directors declared a 30% stock dividend when the share market price is $16. -Nov, 01, Distributed stock dividends declared on Sep. 30. -Nov. 15, The company implemented 5-for-1 stock split for the common stock. Required: Prepare journal entries to record each of these transactions for 2021. CLEARLY…
The stockholders’ equity section of Hendly Corporation appears below as of December 31, 2020. 8% preferred stock, $50 par value, authorized 100,000 shares, outstanding 90,000 shares $ 4,500,000 Common stock, $1.00 par, authorized and issued 10 million shares 10,000,000 Additional paid-in capital 20,500,000 Retained earnings (includes 2020 net income of $33,000,000) 167,000,000 Net income $202,000,000 Net income for 2020 reflects a total effective tax rate of 20%. Included in the net income figure is a loss of $18,000,000 (before tax) as a result of a non-recurring major casualty. Preferred stock dividends of $360,000 were declared and paid in 2020. Dividends of $1,000,000 were declared and paid to common stockholders in 2020. Instructions Compute earnings per share data as it should appear on the income statement of Hendly Corporation.
ABC Corporation provided you the following information on January 01, 2021: Share capital, P10 par P4,000,000 Share premium 800,000 Retained earnings 3,500,000 Share transactions for the year 2021: Feb 10 – Declared 10% share dividend. Market value of each share – P20 March 10 – Issued and distributed share dividends declared on February 10 June 15 - Declared 20% share dividend. Market value of each share – P25 July 01 - Issued and distributed share dividends declared on June 15 December 03 – Declared cash dividend of P2 per share Retained earnings for the year 2021 would decrease by: a.3,616,000 b.2,336,000 c.3,616,000 d.1,056,000

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