On July 1, Davidson Corporation had the following capital Str Common stock ( $3 par value) Additional paid-in capital $ 642,000 1,080,000 770,000 0 Retained earnings Treasury stock Required: Complete the table below for each of the two following independent cases: Note: Round "Par value per share" amounts to 2 decimal places. Case 1: The board of directors declared and issued a 40 percent stock dividend when the stock was selling at $5 per share. Case 2: The board of directors announced a 6-for-5 stock split. The market price prior to the split was $5 per share.
Q: On July 1, Jones Corporation had the following capital structure: Common Stock, par $1; 8,000,000…
A: Solution: Case 1 Case 2 Before stock transactions After 100% stock dividend After Stock…
Q: Common stock-$10 par value, 95,000 shares authorized, issued, and outstanding Paid-in capital in…
A: Treasury stock is the shares repurchased from the existing shareholders. Thus they reduce the amount…
Q: Weaver Corporation had the following stock issued and outstanding at January 1, Year 1: 1. 52,000…
A: The journal entries are prepared to record the transactions on regular basis. The dividend is…
Q: The stockholders' equity section of Concord Inc. at the beginning of the current year appears below.…
A: A change you make to your records to more accurately reconcile your income and expenses with your…
Q: Crane Corporation has 12.50 million shares of common stock issued and outstanding. On June 1, the…
A: Entries to record dividend, if the dividend represents a distribution of earnings.
Q: A company with 88,000 authorized shares of $8 par common stock issued 30,000 shares at $12.…
A: Retained earnings are the earning which is not distributed among shareholders in the form of…
Q: On June 30, Sharper Corporation's common stock is priced at $33.50 per share before any stock…
A: Stock Dividend - A stock dividend is a corporate action, a method used by companies to distribute…
Q: Douglas McDonald Company’s balance sheet included the following shareholders’ equity accounts at…
A: The objective of the question is to calculate the value of shares issued and prepare the appropriate…
Q: A corporation originally issued $6 par value common stock for $11 per share. It purchased the stock…
A: Treasury stock refers to a method used by the organization to repurchase the issued stock. It is…
Q: On October 31, the stockholders' equity section of Blossom Company's balance sheet consists of…
A: STOCK DIVIDEND:Sometimes, the corporation declares dividend in form of 'Stock Dividend'.In this…
Q: Jackson Enterprises has the following capital (equity) accounts: Common stock ($1 par; 200,000…
A: A cash dividend is a payment made from a company's current earnings or accumulated profits that is…
Q: The stockholders' equity section of the January 1, 2031 balance sheet for XYZ Company is given…
A: >Treasury stock are the shares that have been purchased by the original issuing company from its…
Q: On January 1, Wildhorse Corporation had 92,000 shares of no-par common stock issued and outstanding.…
A: The journal entries are prepared to record the transactions on regular basis. The dividend is…
Q: Required: Complete the table below for each of the three following independent cases: Note: Round…
A: Corporate actions encompass strategic decisions by a company that impact its stakeholders and…
Q: On January 1, 2020, Ehrlich Corporation had the following stockholders’ equity accounts. Common…
A: Lets understand the basics. Journal entry is required to make to record event and transaction that…
Q: On July 1, Jones Corporation had the following capital structure: Common Stock, par $1; 8,000,000…
A: The stockholder's equity includes the amount contributed by shareholders issued in the form of…
Q: Weaver Corporation had the following stock issued and outstanding at January 1, Year 2:…
A: Dividend - Dividend is part of profit of the company paid to the shareholders. Company paid dividend…
Q: On January 2, Year 1, Torres Corporation issued 17,000 shares of $12 par-value common stock for $18…
A: Issue of common stock more than par value: When a company issues common stock at a value more than…
Q: At the end of the prior annual reporting period, Barnard Corporation's balance sheet showed the…
A: Lets understand the basics.Stockholders Equity consist of the share which the shareholders has…
Q: The following dividends both pertain to Ehrlich Corporation. On October 10, the board of directors…
A: Dividend refers to the profits that are distributed to the shareholders of the entity. It could be…
Q: A company with 94,000 authorized shares of $7 par common stock issued 36,000 shares at $16.…
A: Given that: Issued common shares = 36,000 shares Market price per share = $32 per share
Q: The board of directors of Elston Inc. declared a $0.60 per share cash dividend on its $1 par…
A: Cash dividends can be defined as the amount of cash distributed by the company to its shareholders.…
Q: On July 1, Davidson Corporation had the following capital structure: $ 756,000 970,000 Common stock…
A: The stock split means The company splits its existing stock price and splits the company's existing…
Q: Skysong Company s leager 6% Preferred stock-$10 par value, outstanding 20,100 shares Common…
A: Preferred stock is a hybrid form of financing that combines some features of common stock and some…
Q: On January 1, Sage Hill Corporation had 79000 shares of $10 par value common stock outstanding. On…
A: Stock Dividend is a dividend in the form of shares declared and issued by the corporation to the…
Q: Torre Company has the following account balances on December 31. Common Stock, $5 par (60,000 shares…
A: Stockholders' Equity Also Called As Shareholders' Equity. It Includes Contributed Capital,…
Q: n October 1, the board of directors of Colorado Outfitters, Inc., declares a stock dividend on its…
A: The dividend is declared to the shareholders from the retained earnings of the business. The stock…
Q: pina colada corporation had the following stockholders' equity accounts on january 1, 2022: common…
A: Treasury stock refers to shares of a company's own stock that it has previously issued and…
Q: The stockholders' equity section of the balance sheet for Pawnee Corporation appeared as follows…
A: Company means a form of business where the share holder invest money in business in form of shares…
Q: Metlock Company's ledger shows the following balances on December 31, 2025. $207,000 4% Preferred…
A: Preferred Stock:The stock represents an ownership stake in a company. The dividend is at a fixed…
Q: On January 1, 2025, Sunland Corporation had 91.200 shares of $1 par value common stock issued the…
A: Journal Entries -Journal Entries are the records of the transactions that entered into by the…
Q: Flounder Corporation had the following stockholders' equity accounts on January 1, 2022: Common…
A: The Total Stockholders Equity is the value of the total capital/equity of the owners of the entity.…
Q: On July 1, Davidson Corporation had the following capital structure: Common stock ( $4 par value)…
A: 1. Stock Dividend - Stock Dividend is a corporation action in which company declared percentage of…
Q: On January 1, 2025, the stockholders' equity section of Henry Corporation's balance sheet reported…
A: The stockholders' equity includes the issued capital and retained earnings of the business. The…
Q: On January 1, 2020, Ehrlich Corporation had the following stockholders’ equity accounts. Common…
A: Journal entries refer to the record-keeping process of business transactions in a company's…
Q: A corporation declared and issued a 25% stock dividend on October 1. The following information was…
A: The stockholders' equity represents the owner's claim to the business's net assets and it is…
Q: The stockholders’ equity section of O’Vear Corporation consists of Common stock ($10 par)…
A: The dividend is the amount of income earned by the stockholders in return for their investment. It…
Q: A company's board of directors declared a $0.50 per share cash dividend on its $3 par common stock.…
A: Number of shares=Issued shares-Treasury stock=18,000-5,000=13,000
Q: On July 1, Davidson Corporation had the following capital structure: Common stock ( $3 par value)…
A: Explanation:Case 1 (Stock Dividend): A 40% stock dividend means for every 100 shares held, investors…
Q: Weaver Corporation had the following stock issued and outstanding at January 1, Year 2: 1.147,000…
A: Lets understand the basics. Common stockholder is a owner of the company and paid dividend when…
Q: On October 31, the stockholders' equity section of Cullumber Company consists of common stock…
A: The stock dividend increases the issued capital and decreases the retained earnings with the same…
Q: The stockholders' equity section on the December 31 balance sheet of Hadley Corporation reported the…
A: Paid in capital :— It is the total amount received by company from shareholder's in exchange for…
Q: Mar. 1 Purchased 6,000 shares at $9 per share. June 1 Sold 1,500 shares at $13 per share. Sept. 1…
A: GIIVEN Mar. 1 Purchased 6,000 shares at $9 per share.June 1 Sold 1,500 shares at $13 per…
Q: Bower Corporation reported the following information: common stock, $1 par; 100,000 shares…
A: Dividend means the amount given to shareholder of the company as profit distribution by company.…
Q: Kingbird Company has outstanding 2,700 shares of $100 par, 6% preferred stock and 14,300 shares of…
A: The preferred shares are the shares issued by the company to raise capital. The preferred stock…
Q: The following information is available for Metloc Rock Corporation: Common Stock ($5 par)…
A: The stock dividend is a method of capitalizing the retained earning. Generally the large stock…
Q: low is information relating to the stockholders' equity of Perry Corporation as of December 31, Year…
A: Common stock means the amount raised against which the dividend is paid but after paying interest on…
Q: On October 10, the stockholders' equity section of Sherman Systems appears as follows. Common…
A: The treasury stock includes the own shares of the company purchased from the shareholders. The…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- A company with 95,000 authorized shares of $7 par common stock issued 42,000 shares at $16. Subsequently, the company declared a 2% stock dividend on a date when the market price was $34 per share. What is the amount transferred from the retained earnings account to paid-in capital accounts as a result of the stock dividend?On January 1, Marigold Corp. had 54,800 shares of no-par common stock issued and outstanding. The stock has a stated value of $4.per share. During the year, the following transactions occurred. Apr. 1 June 15 July 10 Dec. 1 (a) 15 Issued 8,200 additional shares of common stock for $11 per share. Declared a cash dividend of $1.40 per share to stockholders of record on June 30. Paid the $1.40 cash dividend. Issued 4,300 additional shares of common stock for $11 per share. Declareda cash dividend on outstanding shares of $1.50 per share to stockholders of record on December 31. Prepare the entries, if any, on each of the three dates that involved dividends. (Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually) Titles and Explanation Date 10 Account Debit CreditThe balance sheet caption for common stock is the following: Common stock, $2 par value, 2,070,000 shares authorized, 1,310, 000 shares issued, 1,050,000 shares outstanding $? Required: a. Calculate the dollar amount that will be presented opposite this caption. b. Calculate the total amount of a cash dividend of $0.27 per share. c. What accounts for the difference between issued shares and outstanding shares? a. Amount b. Cash dividend c. Difference between issued shares and outstanding shares
- On July 1, Jones Corporation had the following capital structure: Common Stock, par $1; 8,000,000 authorized shares, 165,000 issued and outstanding $ 165,000 Additional Paid-in Capital 109,000 Retained Earnings 189,000 Treasury Stock None Required:Complete the following table based on two independent cases involving stock transactions: (Round "per share" answers to 2 decimal places.) Case 1: The board of directors declared and issued a 100 percent stock dividend when the stock price was $6 per share. Case 2: The board of directors voted a 2-for-1 stock split. The stock price prior to the split was $6 per share.Weaver Corporation had the following stock issued and outstanding at January 1, Year 1: 1. 138,000 shares of $7 par common stock. 2. 9,500 shares of $90 par, 5 percent, noncumulative preferred stock. On June 10, Weaver Corporation declared the annual cash dividend on its 9,500 shares of preferred stock and a $4 per share dividend for the common shareholders. The dividends will be paid on July 1 to the shareholders of record on June 20. Required a. Determine the total amount of dividends to be paid to the preferred shareholders and common shareholders. b. Prepare general journal entries to record the declaration and payment of the cash dividends. Complete this question by entering your answers in the tabs below. Required A Required B Determine the total amount of dividends to be paid to the preferred shareholders and common shareholders. Preferred stock Common stock Total dividend Required A Required B >A company whose stock is trading at $10 per share has 1,000 shares of $1 par common stock outstanding when the board of directors declares a 30% common stock dividend. Which of the following adjustments should be made when recording the stock dividend? O Retained earnings is debited for $300. O Common stock is debited for $3,000. O Additional paid-in capital is credited for $2,700. O Treasury stock is debited for $300.
- A company with 100,000 authorized shares of $6 par common stock issued 35,000 shares at $12. Subsequently, the company declared a 2% stock dividend on a date when the market price was $22 per share. What is the amount transferred from the retained earnings account to paid-in capital accounts as a result of the stock dividend?On June 30, 2021, when ABC Co. stock was selling for $65 each, the equity accounts had the following balances: Common Stock ($50 par value, 50,000 issued) $2,500,000 Capital Contributed in Excess of Par Value—Common Stocks 600,000 Retained Earnings 4,200,000 How much will the Common Stock account balance be after declaring and distributing a 100% stock dividend? a. $5,000,000. b. $7,300,000. c. $2,500,000.On October 31, the stockholders' equity section of Blossom Corporation's balance sheet consists of common stock $659,200 and retained earnings $877,000. Blossom is considering the following two courses of action: (1) declaring a 5% stock dividend on the 82.400 $8 par value shares outstanding or (2) effecting a 2-for-1 stock split that will reduce par value to $4 per share. The current market price is $15 per share. Prepare a tabular summary of the effects of the alternative actions on the company's stockholders' equity and outstanding shares. Stockholders' equity Paid-in capital Retained earnings Total stockholders equity $ Outstanding shares Before Action $ $ After Stock Dividend $ After Stock Split
- On January 1, Pharoah Corporation had 97,500 shares of no-par common stock issued and outstanding. The stock has a stated value of $6 per share. During the year, the following occurred. Apr. 1 Issued 23,000 additional shares of common stock for $17 per share. June 15 July 10 Dec. (a) 1 15 Declared a cash dividend of $1 per share to stockholders of record on June 30. Paid the $1 cash dividend. Issued 1,500 additional shares of common stock for $19 per share. Declared a cash dividend on outstanding shares of $2.90 per share to stockholders of record on December 31. Prepare the entries to record these transactions. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit CreditJust prior to the end of the fiscal year, Biofuel Corporation reported the following information: Common stock ($0.20 par value) Additional paid-in capital $ 70,000 2,000,000 900,000 Retained earnings Treasury stock Cash flows from financing activities Required: Complete the table below for each of the three following independent cases: Note: Round "Par per share" answers to 2 decimal places. Case 1: The board of directors declared a cash dividend of $0.02 per share. Case 2: The board of directors declared and issued a 100 percent stock dividend when the stock was selling at $12 per share. Case 3: The board of directors announced 2-for-1 stock split. The market price prior to the split was $20 per share. Items After Stock Dividend 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 $ $ $ $ $ 0 24,000 70,000 $ 0.2 2,000,000 900,000 24,000 After Cash…On January 1, 2022, Cheyenne Corp. had the following stockholders’ equity accounts. Common Stock ($20 par value, 57,900 shares issued and outstanding) $1,158,000 Paid-in Capital in Excess of Par—Common Stock 202,000 Retained Earnings 580,000 During the year, the following transactions occurred. Feb. 1 Declared a $2 cash dividend per share to stockholders of record on February 15, payable March 1. Mar. 1 Paid the dividend declared in February. Apr. 1 Announced a 2-for-1 stock split. Prior to the split, the market price per share was $35. July 1 Declared a 10% stock dividend to stockholders of record on July 15, distributable July 31. On July 1, the market price of the stock was $15 per share. 31 Issued the shares for the stock dividend. Dec. 1 Declared a $0.40 per share dividend to stockholders of record on December 15, payable January 5, 2023. 31 Determined that net income for the year was $345,000. Prepare a stockholders’ equity…