Culver Company provides you with the following condensed balance sheet information: Assets Current assets $ 40,800 Equity investments 58,800 Equipment (net) 239,700 Intangibles 65,600 Total assets $404,900 Liabilities and Stockholders’ Equity Current and long-term liabilities $94,400 Stockholders’ equity Common stock ($5 par) $ 18,900 Paid-in capital in excess of par 103,900 Retained earnings 187,700 310,500 Total liabilities and stockholders’ equity $404,900 For each of the following transactions, indicate the dollar impact (if any) on the following five items: (1) total assets, (2) common stock, (3) paid-in capital in excess of par, (4) retained earnings, and (5) stockholders’ equity. (Each situation is independent.) (a) Culver declares and pays a $0.60 per share cash dividend. (b) Culver declares and issues a 10% stock dividend when the market price of the stock is $13 per share. (1) Total assets decrease increase no effect $ (2) Common stock decrease increase no effect $ (3) Paid-in capital in excess of par decrease increase no effect $ (4) Retained earnings decrease increase no effect $ (5) Total stockholders’ equity decrease increase no effect $ (c) Culver declares and issues a 30% stock dividend when the market price of the stock is $14 per share. (1) Total assets decrease increase no effect $ (2) Common stock decrease increase no effect $ (3) Paid-in capital in excess of par decrease increase no effect $ (4) Retained earnings decrease increase no effect $ (5) Total stockholders’ equity decrease increase no effect $
Culver Company provides you with the following condensed
|
Assets |
||||
|
Current assets |
$ 40,800 |
|||
|
Equity investments |
58,800 |
|||
|
Equipment (net) |
239,700 |
|||
|
Intangibles |
65,600 |
|||
|
Total assets |
$404,900 |
|||
|
Liabilities and |
||||
|
Current and long-term liabilities |
$94,400 |
|||
|
Stockholders’ equity |
||||
|
Common stock ($5 par) |
$ 18,900 |
|||
|
Paid-in capital in excess of par |
103,900 |
|||
|
|
187,700 |
310,500 |
||
|
Total liabilities and stockholders’ equity |
$404,900 |
For each of the following transactions, indicate the dollar impact (if any) on the following five items: (1) total assets, (2) common stock, (3) paid-in capital in excess of par, (4) retained earnings, and (5) stockholders’ equity. (Each situation is independent.)
(a) Culver declares and pays a $0.60 per share cash dividend.
(b) Culver declares and issues a 10% stock dividend when the market price of the stock is $13 per share.
|
(1) |
Total assets |
decrease increase no effect |
$ |
|||
|
(2) |
Common stock |
decrease increase no effect |
$ |
|||
|
(3) |
Paid-in capital in excess of par |
decrease increase no effect |
$ |
|||
|
(4) |
Retained earnings |
decrease increase no effect |
$ |
|||
|
(5) |
Total stockholders’ equity |
decrease increase no effect |
$ |
(c) Culver declares and issues a 30% stock dividend when the market price of the stock is $14 per share.
|
(1) |
Total assets |
decrease increase no effect |
$ |
|||
|
(2) |
Common stock |
decrease increase no effect |
$ |
|||
|
(3) |
Paid-in capital in excess of par |
decrease increase no effect |
$ |
|||
|
(4) |
Retained earnings |
decrease increase no effect |
$ |
|||
|
(5) |
Total stockholders’ equity |
decrease increase no effect |
$ |
(d) Culver declares and distributes a property dividend. Culver gives one share of its equity investment (ABC stock) for every two shares of Culver Company stock held. Culver owns 9,800 shares of ABC. ABC is selling for $10 per share on the date the property dividend is declared.
|
(1) |
Total assets |
decrease increase no effect |
$ |
|||
|
(2) |
Common stock |
decrease increase no effect |
$ |
|||
|
(3) |
Paid-in capital in excess of par |
decrease increase no effect |
$ |
|||
|
(4) |
Retained earnings |
decrease increase no effect |
$ |
|||
|
(5) |
Total stockholders’ equity |
decrease increase no effect |
$ |
(e) Culver declares a 2-for-1 stock split and issues new shares.
|
(1) |
Total assets |
decrease increase no effect |
$ |
|||
|
(2) |
Common stock |
decrease increase no effect |
$ |
|||
|
(3) |
Paid-in capital in excess of par |
decrease increase no effect |
$ |
|||
|
(4) |
Retained earnings |
decrease increase no effect |
$ |
|||
|
(5) |
Total stockholders’ equity |
decrease increase no effect |
$ |
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