HM company has 1,000,000 shares of $1 par value capital stock outstanding on January 1. The following equity transaction occurred during the current year. Apr. 30 Distributed additional shares of capital stock in a 2 for 1 stock splits. market price of stock was $35 per share. June 1 Declare a cash dividend of $ 0.60 cash dividend 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 share resulting from the 5 percent stock dividend declared on August 1. Prepare journal entries to record these transactions. Compute the number of shares of capital stock outstanding at year-end What is par value per share of HM stock at the end of the year Determine the effect of each of the following on total stockholders’ equity: stock, equity split, declaration and payment of cash dividend, declaration and distribution of stock dividend (could be your answer increase decrease or no effect).
HM company has 1,000,000 shares of $1 par value capital stock outstanding on January 1. The following equity transaction occurred during the current year. Apr. 30 Distributed additional shares of capital stock in a 2 for 1 stock splits. market price of stock was $35 per share. June 1 Declare a cash dividend of $ 0.60 cash dividend 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 share resulting from the 5 percent stock dividend declared on August 1. Prepare journal entries to record these transactions. Compute the number of shares of capital stock outstanding at year-end What is par value per share of HM stock at the end of the year Determine the effect of each of the following on total stockholders’ equity: stock, equity split, declaration and payment of cash dividend, declaration and distribution of stock dividend (could be your answer increase decrease or no effect).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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HM company has 1,000,000 shares of $1 par value capital stock outstanding on January 1. The following equity transaction occurred during the current year.
Apr. 30 Distributed additional shares of capital stock in a 2 for 1 stock splits. market price of stock was $35 per share.
June 1 Declare a cash dividend of $ 0.60 cash dividend
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 share resulting from the 5 percent stock dividend declared on August 1.
- Prepare
journal entries to record these transactions. - Compute the number of shares of capital stock outstanding at year-end
- What is par value per share of HM stock at the end of the year
- Determine the effect of each of the following on total
stockholders’ equity: stock, equity split, declaration and payment of cash dividend, declaration and distribution of stock dividend (could be your answer increase decrease or no effect).
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