Indicate whether the following actions would (+) increase, (-) decrease, or (0) not affectIndigo Inc.'s total assets, liabilities, and stockholders’ equity:Stockholders'LiabilitiesAssetsEquity(1) Authorizing and issuing stock certificatesin a stock splitDeclaring a stock dividendIssuing stock certificates for the stock(2)(3)dividend declared in (2)(4) Declaring a cash dividend(5) Paying the cash dividend declared in (4)

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Answered: Indicate whether the following actions…

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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Statement 1: Cash received in lieu of stock dividends is accounted for as dividend income. Statement 2: Shares received in lieu of cash dividend are recorded as income at fair value of the shares received. A. Only statement 1 is true B. Only statement 2 is true C. Both statements are true D. Both statements are false
in your own words 100 words Explain how return on equity (ROE), return on assets (ROA), and price earnings ratio (P/E) are affected when new common stock is issued by a corporation.
Stockholders’ equity represents the total value of a corporation’s stock plus retained earnings that have accumulated to date.; True or False
14. When a company declares a cash dividend, which of the following is true? a.Assets are decreased. b.Assets are increased. c.Liabilities are increased. d.Shareholders' equity is increased.
5. Stockholders' equity The right side of the balance sheet shows the firm's liabilities and stockholders' equity. Which of the following best describes shareholders' equity? O Equity is the difference between the paid-in capital and retained earnings. O Equity is the sum of what the initial stockholders paid when they bought company shares and the earnings that the company has retained over the years. NOW Inc. released its annual results and financial statements. Grace is reading the summary in the business pages of today's paper. In its annual report this year, NOW Inc. reported a net income of $136 million. Last year, the company reported a retained earnings balance of $459 million, whereas this year it increased to $540 million. How much was paid out in dividends this year? O $55 million O $217 million O $4 million O $280 million
On October 10, the stockholders' equity section of Sherman Systems appears as follows. Common stock-$10 par value, 5,500 shares authorized, issued, and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity 1. Prepare journal entries to record the following transactions for Sherman Systems. a. Purchased 7,000 shares of its own common stock at $45 per share on October 11. b. Sold 1,500 treasury shares on November 1 for $51 cash per share. c. Sold all remaining treasury shares on November 25 for $44 cash per share. 2. Prepare the stockholders' equity section after the October 11 treasury stock purchase. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare journal entries to record the following transactions for Sherman Systems. a. Purchased 7,000 shares of its own common stock at $45 per share on October 11. b. Sold 1,500 treasury shares on November 1 for $51 cash per share. c. Sold all…
Revaluation surplus of a company will be shown in a. Statement of cash flows b. iIt will be shown only in current liabilities c. It will not be shown anywhere d. Statement of changes in equity Which of the following effect is Correct for the payment of dividend by the company on Irredeemable preference shares? a. Increase Bank balance b. Increase Current liability c. Decrease Current liability d. Increase Retained earnings
Indicate the correct order in which to report the following accounts in the stockholders’ equity section of the balance sheet: Additional Paid-in Capital, Common Stock, Preferred Stock, Treasury Stock, and Retained Earnings.
None
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P13-54 Journalizing stock issuances, cash dividends, and stock dividends; preparing stockholders' equity section of balance sheet This problem continues the Canyon Canoe Company situation from Chapter 12. After looking into debt financing through notes, mortgage, and bonds payable, Canyon Canoe Company decides to raise additional capital for the planned business expansion. The company will be able to acquire cash as well as land adjacent to its current business location. Before the following transactions, the balance in Common Stock on January 1, 2021, was $136,000 and included 136,000 shares of common stock issued and outstanding. (There was no Paid-In Capital in Excess of Par-Common.) Canyon Canoe Company had the following transactions in 2021: Jan. 1 Issued 50,000 shares of $1 par value common stock for a total of $200,000. 10 Issued 20,000 shares of 4%, $3 par value preferred stock in exchange for land with a market value of $70,000. Dec. 15 Declared total cash dividends of…
Declaration of cash dividends will … a. Increase the retained earnings b. Increase the stockholders’ equity c. Decrease the retained earnings d. Decrease the total equity Entries for dividends are required on the … a. Declaration date and payment date b. Declaration date and record date c. Record date and declaration date d. Payment date and record date

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