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Data table Stockholders' Equity Common stock, $0.40 par, 2,100,000 shares authorized, 700,000 shares issued Paid-in capital in excess of par-common Retained earnings Accumulated other comprehensive income (loss) Total stockholders' equity S 280,000 1,506,773 7,500,000 (205,000) $ 9,081,773 X

Data table Stockholders' Equity Common stock, $0.40 par, 2,100,000 shares authorized, 700,000 shares issued Paid-in capital in excess of par-common Retained earnings Accumulated other comprehensive income (loss) Total stockholders' equity S 280,000 1,506,773 7,500,000 (205,000) $ 9,081,773 X

FINANCIAL ACCOUNTING
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 stockholders' equity section of the balance sheet for Perfect Desserts Corporation on January 16, 2022, follows: (Click the icon to view the data.) On January 16, 2022, the market price of Perfect Desserts common stock was $15 per share. Perfect Desserts declared and distributed a 15% stock dividend on this date. Read the requirements. Requirement 1. Journalize the declaration and distribution of the 15% stock dividend. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Date January 16 shares Accounts Total paid-in capital Requirement 2. Prepare the stockholders' equity section of the balance sheet after the stock dividend. (Enter the accounts in the proper order for the stockholders' equity section of the balance sheet. Use parentheses or a minus sign for numbers to be subtracted.) Balance Sheet (Partial) Stockholders' Equity Debit par, Credit shares Total stockholders' equity Requirement 3. Why is total stockholders' equity unchanged by the stock dividend? The company merely The stock dividend did not change total stockholders' equity because the company gave Requirement 4. Suppose PD had a cash balance of $550,000 on January 17, 2022. What is the maximum amount of cash dividends the company can declare? PD's maximum cash dividends shareholders Data table Stockholders' Equity Common stock, $0.40 par, 2,100,000 shares authorized, 700,000 shares issued Paid-in capital in excess of par-common Retained earnings Accumulated other comprehensive income (loss) Total stockholders' equity Print Done $ 280,000 1,506,773 7,500,000 (205,000) $ 9,081,773 X
Transcribed Image Text:The stockholders' equity section of the balance sheet for Perfect Desserts Corporation on January 16, 2022, follows: (Click the icon to view the data.) On January 16, 2022, the market price of Perfect Desserts common stock was $15 per share. Perfect Desserts declared and distributed a 15% stock dividend on this date. Read the requirements. Requirement 1. Journalize the declaration and distribution of the 15% stock dividend. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Date January 16 shares Accounts Total paid-in capital Requirement 2. Prepare the stockholders' equity section of the balance sheet after the stock dividend. (Enter the accounts in the proper order for the stockholders' equity section of the balance sheet. Use parentheses or a minus sign for numbers to be subtracted.) Balance Sheet (Partial) Stockholders' Equity Debit par, Credit shares Total stockholders' equity Requirement 3. Why is total stockholders' equity unchanged by the stock dividend? The company merely The stock dividend did not change total stockholders' equity because the company gave Requirement 4. Suppose PD had a cash balance of $550,000 on January 17, 2022. What is the maximum amount of cash dividends the company can declare? PD's maximum cash dividends shareholders Data table Stockholders' Equity Common stock, $0.40 par, 2,100,000 shares authorized, 700,000 shares issued Paid-in capital in excess of par-common Retained earnings Accumulated other comprehensive income (loss) Total stockholders' equity Print Done $ 280,000 1,506,773 7,500,000 (205,000) $ 9,081,773 X
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