**Educational Resource on Cash Dividends, Stock Dividends, and Stock Splits****Chapter 12: Income and Changes in Retained Earnings****Exercise 12.7***Cash Dividends, Stock Dividends, and Stock Splits*The following equity transactions occurred for HiTech Manufacturing Company:- **Jan. 1:** HiTech Manufacturing Company had 50,000 shares of $1 par value capital stock outstanding. - **Apr. 30:** Distributed a cash dividend of $0.30 per share to stockholders.- **June 1:** Declared a cash dividend of $0.60 per share to stockholders.- **July 1:** Paid the $0.60 cash dividend to stockholders.- **Aug. 1:** Declared a 5 percent stock dividend. Market price of stock was $19 per share.- **Sept. 10:** Issued shares resulting from the 5 percent stock dividend.**Tasks:**a. Prepare journal entries to record the above transactions.b. Compute the number of shares of HiTech Manufacturing stock outstanding at year-end.c. Determine the par value per share of HiTech Manufacturing stock at the end of the year.d. What was the market price of HiTech Manufacturing stock at year-end, following the stock dividend?e. What effects did the declared and paid cash dividend and the 5 percent stock dividend have on total stockholders’ equity?**Exercise 12.8***Effect of Stock Dividends on Stockholders' Equity at the Date of Declaration*Inland Co. has a total of 40,000 shares of $1 par value capital stock outstanding. Inland declared a 5 percent stock dividend on August 1. The market price of Inland's stock was $10 per share. Record the issuance of the stock dividend.**Graph Explanation (if applicable):**The provided text does not include any specific graphs or diagrams that need to be explained. The instructions and exercises are focused on theoretical and calculation-based scenarios related to equity transactions, dividends, and stock splits. These exercises will aid in understanding the impact of various dividend and stock actions on a company's financial records and stockholders' equity, providing practical insight into corporate finance and accounting principles.

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HiTech Manufacturing Company has 1,000,000 shares of $1 par value capital stock outstanding on January 1. The following equity transactions occurred during the current year.

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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Presented below is information related to a company at the beginning of the year: Common Stock, $10 par $6,700 Retained Earnings 4,700 During the year, 10 shares were reacquired at $11 per share. How much is the total stockholders' equity after the treasury stock transaction, assuming the company accounts for treasury stock under the cost method?
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Subject: accounting
Marutzky Corporation had a net income of $2,200,000 for the year 2018. On January 1, 2018, the corporation had 300,000 shares of common stock outstanding and issued an additional 250,000 shares of common stock on October 1, 2018. Calculate the earnings per shares using the weighted-average number of common shares outstanding.
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