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)

Answered: Image /qna-images/answer/818e6763-2c3f-4d42-b644-9492f795df19.jpg

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

See similar textbooks

Similar questions

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
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…
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
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
Subject: accounting
The Declaration on a stock dividend changes to total amount stockholder’s equity of the firm. True or False
1. A Analyze each transaction from issuances of stock by showing its effect on the accounting equation-specifically, identify the accounts and amounts (including + or -) for each transaction. 1. 2. 2. Following are the issuances of stock transactions. 1. A corporation issued 9,000 shares of $10 par value common stock for $108,000 cash. 2. A corporation issued 4,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $31,500. The stock has a $1 per share stated value. 2. 3. A corporation issued 4,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $31,500. The stock has no stated value. 4. A corporation issued 2,250 shares of $25 par value preferred stock for $87,750 cash. 3. 3. 4. 4. Assets = = = = = = Liabilities + +++++++ Equity
Which of the following would cause a decrease in stockholders' equity? (A) Purchase of equipment (B) Payment of cash dividend (C) Declaring cash dividend (D) Issuing stock certificate for stock dividends Answer A B O O U D

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS