Eastline Corporation had 10,000 shares of $10 par value common stock outstanding when the board of directors declared a stock dividend of 3,000shares. At the time of the stock dividend, the market value per share was $12. The entry to record the declaration of this dividend is:Multiple ChoiceNo entry is needed.Debit Retained Earnings $30,000; credit Common Stock Dividend Distributable $30,000.Debit Retained Earnings $36,000; credit Common Stock Dividend Distributable $36,000.Debit Retained Earnings $36,000; credit Common Stock Dividend Distributable $30,000; credit Paid-In Capital in Excess of Par Value,Common Stock $6,000.Debit Common Stock Dividend Distributable $36,000; credit Retained Earnings $36,000.7

Lets understand the basics.Dividend can be declared as,(1) Cash dividend (2) Stock dividend Cash…

Answered: Eastline Corporation had 10,000 shares…

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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Vincent Corporation has 93,000 share of $100 par common stock outstanding. On June 30, Vincent Corporation declared a 4% stock dividend to be issued on July 30 to stockholders of record July 15. The market price of the stock was $124 a share on June 30. If no entry is required, select "No Entry Required" and leave the amount boxes blank. If an amount box does not require an entry, leave it blank. Journalize the entry required on June 30. June 30 Journalize the entry required on July 15. July 15 Journalize the entry required on July 30. July 30 00
Brice Company completed the following transactions in Year 1, the first year of operation: Issued 44,000 shares of no-par common stock for $10 per share. Issued 8,400 shares of $20 par, 8 percent, preferred stock for $20 per share. Paid a cash dividend of $13,440 to preferred shareholders. Issued a 10 percent stock dividend on no-par common stock. The market value at the dividend declaration date was $12 per share. Later that year, issued a 2-for-1 split on the shares of outstanding common stock. The market price of the stock at that time was $50 per share. Produced $160,000 of cash revenues and incurred $76,000 of cash operating expenses. Closed the revenue, expense, and dividend accounts to retained earnings. b. Record the Year 1 transactions in general journal form and post them to T-accounts.
Mercury Corporation issued 6,500 shares of no-par common stock for $25 per share. Mercury also issued 3,200 shares of $25 par, 6 percent noncumulative preferred stock at $35 per share. a. Required Record these events in a horizontal statements model. b. Prepare journal entries to record these transactions.
When Crossett Corporation was organized in January, Year 1, it immediately issued 5,500 shares of $51 par, 7 percent, cumulative preferred stock and 10,000 shares of $10 par common stock. Its earnings history is as follows: Year 1, net loss of $15,400; Year 2, net income of $125,000; Year 3, net income of $99,900. The corporation did not pay a dividend in Year 1. Required a. How much is the dividend arrearage as of January 1, Year 2? Dividend arrearage b. Assume that the board of directors declares a $52,270 cash dividend at the end of Year 2 (remember that the Year 1 and Year 2 preferred dividends are due). How will the dividend be divided between the preferred and common stockholders? Total amount distributed to preferred shares Total amount distributed to common shares
On September 1, Ziegler Corporation had 71,000 shares of $5 par value common stock, and $213,000 of retained earnings. On that date, when the market price of the stock is $15 per share, the corporation issues a 2-for-1 stock split. The general journal entry to record this transaction is: Multiple Choice Debit Retained Earnings $355,000; credit Common Stock $355,000. Debit Retained Earnings $1,065,000; credit Common Stock Split Distributable $1,065,000. No entry is made for this transaction. Debit Retained Earnings $1,065,000; credit Common Stock $1,065,000. Debit Retained Earnings $355,000; credit Stock Split Payable $355,000.
On July 1, Jones Corporation had the following capital structure: Common Stock, par $1; 8,000,000 authorized shares, 165,000 issued and outstanding $ 165,000 Additional Paid-in Capital 109,000 Retained Earnings 189,000 Treasury Stock None Required:Complete the following table based on two independent cases involving stock transactions: (Round "per share" answers to 2 decimal places.) Case 1: The board of directors declared and issued a 100 percent stock dividend when the stock price was $6 per share. Case 2: The board of directors voted a 2-for-1 stock split. The stock price prior to the split was $6 per share.
Sheridan Corp. issues 5200 shares of $10 par value common stock at $16 per share. When the transaction is recorded, credits are made to Common Stock $52000 and Paid-in Capital in Excess of Par $31200. O Common Stock $52000 and Paid-in Capital in Excess of Stated Value $31200. O Common Stock $52000 and Retained Earnings $31200. O Common Stock $83200.
Wildcat, Inc. declared a 10% stock dividend when it had 250,000 shares of $1 par value common stock outstanding. The market price per share of common stock was $10 per share when the dividend was declared. The entry to record the stock dividend would include a credit to: O Common Stock $250.000. O Retained Earnings $250,000. O Retained Earnings $25,000. O Additional Paid in Capital $250,000. O None of the above.
Subject:
Fuerman Incorporated had the following common stock record during the current calendar year Outstanding, beginning of year Additional shares issued 6/30 2,850,000 230,000 Additional shares issued 9/30 230,000 A 12% stock dividend was paid on December 1. What is the number of shares to be used in computing basic EPS? Multiple Choice 3,320,800 3,022,500 3,449,600 3,385,200
On June 30, 2020, when ABC shares were selling for $ 65 each, the equity accounts had the following balances: Common shares (par value $ 50: 50,000 issued) $ 2,500,000 Capital contributed in excess of par value 600,000 Retained earnings 4,200,000 A 100% share dividend is declared and distributed, the balance of the Common Shares account after recording the dividend will be: a. $2,500,000 b. $7,300,000 c. $3,100,000 d. $5,000,000
Vala

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