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Business
Accounting
Items Common stock account Par value per share Shares outstanding Additional paid-in capital Retained earnings Total stockholders' equity Cash flows from financing activities Before Any Dividends $ $ $ $ $ 124,000 0.20 822,000 682,000 35,000 After Cash Dividend After Stock Dividend After Stock Split

Items Common stock account Par value per share Shares outstanding Additional paid-in capital Retained earnings Total stockholders' equity Cash flows from financing activities Before Any Dividends $ $ $ $ $ 124,000 0.20 822,000 682,000 35,000 After Cash Dividend After Stock Dividend After Stock Split

FINANCIAL ACCOUNTING
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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Hello, can I have a step by step solution of cash dividend, stock dividend, and stock split. 

# AP11-11 (Algo) Recording and Comparing Cash Dividends, Stock Dividends, and Stock Splits LO11-4, 11-6, 11-9 ## Overview Just prior to the end of the fiscal year, Climate Corporation reported the following information: - **Common stock ($0.20 par value):** $124,000 - **Additional paid-in capital:** $822,000 - **Retained earnings:** $682,000 - **Treasury stock:** $0 - **Cash flows from financing activities:** $35,000 ## Required Complete the table below for each of the three following independent cases: ### Case Descriptions - **Case 1:** The board of directors declared a cash dividend of $0.04 per share. - **Case 2:** The board of directors declared and issued a 100 percent stock dividend when the stock was selling at $15 per share. - **Case 3:** The board of directors announced a 2-for-1 stock split. The market price prior to the split was $16 per share. **Note:** Round "Par value per share" to 2 decimal places. ## Table | Items | Before Any Dividends | After Cash Dividend | After Stock Dividend | After Stock Split | |----------------------------------------|----------------------|---------------------|----------------------|-------------------| | Common stock amount | $124,000 | | | | | Par value per share | $0.20 | | | | | Shares outstanding | | | | | | Additional paid-in capital | $822,000 | | | | | Retained earnings | $682,000 | | | | | Total stockholders' equity | | | | | | Cash flows from financing activities | $35,000 | | | | Complete this table by calculating the adjustments after each event (cash dividend, stock dividend, and stock split) for the related financial metrics based on the provided case scenarios.
Transcribed Image Text:# AP11-11 (Algo) Recording and Comparing Cash Dividends, Stock Dividends, and Stock Splits LO11-4, 11-6, 11-9 ## Overview Just prior to the end of the fiscal year, Climate Corporation reported the following information: - **Common stock ($0.20 par value):** $124,000 - **Additional paid-in capital:** $822,000 - **Retained earnings:** $682,000 - **Treasury stock:** $0 - **Cash flows from financing activities:** $35,000 ## Required Complete the table below for each of the three following independent cases: ### Case Descriptions - **Case 1:** The board of directors declared a cash dividend of $0.04 per share. - **Case 2:** The board of directors declared and issued a 100 percent stock dividend when the stock was selling at $15 per share. - **Case 3:** The board of directors announced a 2-for-1 stock split. The market price prior to the split was $16 per share. **Note:** Round "Par value per share" to 2 decimal places. ## Table | Items | Before Any Dividends | After Cash Dividend | After Stock Dividend | After Stock Split | |----------------------------------------|----------------------|---------------------|----------------------|-------------------| | Common stock amount | $124,000 | | | | | Par value per share | $0.20 | | | | | Shares outstanding | | | | | | Additional paid-in capital | $822,000 | | | | | Retained earnings | $682,000 | | | | | Total stockholders' equity | | | | | | Cash flows from financing activities | $35,000 | | | | Complete this table by calculating the adjustments after each event (cash dividend, stock dividend, and stock split) for the related financial metrics based on the provided case scenarios.
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