On July 1, Davidson Corporation had the following capital structure:Common stock ( $4 par value)Additional paid-in capitalRetained earnings.Treasury stock$ 678,000970,000730,000Required: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 60 percent stock dividend when the stock was selling at $6 per share.Case 2: The board of directors announced a 6-for-5 stock split. The market price prior to the split was $6 per share.ItemsCommon stock accountPar value per shareShares outstandingAdditional paid-in capitalRetained earnings.Total stockholders' equityBefore Dividendand Split$$$04.00970,000730,000After StockDividend< PrevAfter StockSplit3 of 5#Next >

The share dividend decreases the retained earnings and increases the paid in capital by same amount.…

Answered: On July 1, Davidson Corporation had the…

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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When Crossett Corporation was organized in January, Year 1, it immediately issued 5,500 shares of $51 par, 7 percent, cumulative preferred stock and 10,000 shares of $10 par common stock. Its earnings history is as follows: Year 1, net loss of $15,400; Year 2, net income of $125,000; Year 3, net income of $99,900. The corporation did not pay a dividend in Year 1. Required a. How much is the dividend arrearage as of January 1, Year 2? Dividend arrearage b. Assume that the board of directors declares a $52,270 cash dividend at the end of Year 2 (remember that the Year 1 and Year 2 preferred dividends are due). How will the dividend be divided between the preferred and common stockholders? Total amount distributed to preferred shares Total amount distributed to common 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.
The following are data pertaining to ABC Corporation: Ordinary share Capital, with par value of P50, 18,500 issued shares 925.000 Additional Paid in Capital 125,000 Retained Earnings 4,500,000 Shareholder's Equity 5,550,000 The following transactions took place: Aug 10-Reacquired 6,000 ordinary shares for treasury at P60 per share Aug 12- 2,500 treasury shares were sold at P62 per share Aug 20- Another 1,000 treasury shares were sold at P55 per share Aug 31- 1,000 treasury shares were retired Required: Journalize each transaction and compute for the new balance of Shareholder's Equity.
Mary Company’s pretax accounting income is $66,000 and has the following information: Compensation expense for incentive stock options is $19,000. Interest on municipal bonds is $11,000. Unrealized gain on AFS securities is $1500. Taxable income is $66,000 + $11,000 + $19,000 - $1500. $66,000 + $11,000 - $19,000 + $1500. $66,000 - $11,000 + $19,000. $66,000 - $11,000 - $19,000 .
The outstanding capital stock of Oriole Corporation consists of 1,900 shares of $100 par value, 8% preferred, and 4,700 shares of $50 par value common. Assuming that the company has retained earnings of $89,500, all of which is to be paid out in dividends, and that preferred dividends were not paid during the 2 years preceding the current year, state how much each class of stock should receive under each of the following conditions. a. The preferred stock is noncumulative and nonparticipating. (Round answers to O decimal places, e.g. 38,487.) Preferred b. The preferred stock is cumulative and nonparticipating. (Round answers to O decimal places, e.g. 38,487.) EA Preferred Common c. The preferred stock is cumulative and participating. (Round the rate of participation to 4 decimal places, e.g.1.4278%. Round answers to O decimal places, e.g. 38,487.) Preferred LA Common Common
On June 30, 2020, when ABC shares were selling for $ 65 each, the equity accounts had the following balances: Common shares (par value $ 50: 50,000 issued) $ 2,500,000 Capital contributed in excess of par value 600,000 Retained earnings 4,200,000 A 100% share dividend is declared and distributed, the balance of the Common Shares account after recording the dividend will be: a. $2,500,000 b. $7,300,000 c. $3,100,000 d. $5,000,000
Just 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…
Olive Corporation has 75,000 outstanding shares of P5 par value ordinary share capital and 30,000 shares outstanding 5% P100 par value preference share capital. During October, the board of directors made the following dividend declarations: October 4 - Preference dividend, payable on January 7 to preference shareholders of record on December 15. October 21 - P3 per share dividend payable on January 7 to ordinary shareholders of record on December 15. Compute for the total cash dividends distributed to: Preference shareholders: Ordinary shareholders:
On January 1, 2010, the accounts of Mac Corporation showed the following: Common stock, par SI, authorized 100.000 shares Capital in excess of par value ($2 per share) Retained carnings 60,000 140,000 During 2010, the following transactions occurred affecting stockholders' equity (in the order given) A B. C. D. Issued a 100° stock dividend when the market price was at $5 per share. Purchased treasury stock, 1.000 shares at a total cost of $8.000. Declared and paid cash dividends. SI5.000. Net income for 2010. S25.000
he records of Alamko Corporation showed the following data: Ordinary share capital, par P10, authorised 1,000 000 shares, issued 300,000 3,000,000 Share Premium 300,000 Treasury shares, 10,000 at (150,000) cost Retained Earnings 5,000,000 The Board of Directors declared a 15% stock dividend. Stocks are selling at P15. The entry to record on the date of declarationis Select the correct response: Retained Earnings 652,500 Stock dividends for distribution 435.000 Share Premium 217,500 Retained Earnings 450,000 Stock dividends for distribution 450,000 Retained Earnings 435,000 Stock dividends for distribution 435,000 Retained Earnings 675,000 Stock dividends for O distribution 450,000 Share Premium 225,000
provide answer for A, B and C

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