Show Attempt HistoryCurrent Attempt in Progress* Your answer is incorrect.On October 31, the stockholders' equity section of Concord Corporation's balance sheet consists of common stock $801,000 andretained earnings $927,000. Concord is considering the following two courses of action: (1) declaring a 4% stock dividend onthe 80,100 $10 par value shares outstanding or (2) effecting a 2-for-1 stock split that will reduce par value to $5 per share. The currentmarket price is $16 per share.Prepare a tabular summary of the effects of the alternative actions on the company's stockholders' equity and outstanding shares.BeforeActionAfterStockDividendAfterStockSplitStockholders' equityPaid-in capitalRetained earningsAttempts: unlimited Submit AnswerTotal stockholders' equityOutstanding shareseTextbook and MediaSolutionSave for LaterLA$LA$$

Outstanding share is calculated by deducting the treasury stock from the common stock of the…

Answered: On October 31, the stockholders' equity…

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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For the year 2021, Aquamarine Corporation has earned a net income of P400,000. Compute for the basic earnings per share under each of the following assumptions a. The company has only one class of stock with 100,000 shares outstanding b. The company has shares outstanding as follows: 8% Preference Share Capital P50 par, 20,000 shares outstanding Ordinary Share Capital P10 par, 100,000 shares outstanding i. Preference shares are cumulative ii. Preference shares are non-cumulative, dividends has been declared by the BOD iii. Preference shares are non-cumulative, no dividend has been declared by the BOD c. Same as letter b but with additional information with regards to the issuance of ordinary shares Jan 1 Beginning Balance 60,000 shares May 1 Additional Isuance 20,000 shares Aug 1 Additional Isuance 20,000 shares Nov 1 Additional Isuance 30,000 shares
A corporation has 71,868 shares of $36 par stock outstanding that has a current market value of $312 per share. If the corporation issues a 4-for-1 stock split, the market value of the stock will fall to approximately a.$17,967 b.$9 c.$78 d.$276
On September 1, Ziegler Corporation had 71,000 shares of $5 par value common stock, and $213,000 of retained earnings. On that date, when the market price of the stock is $15 per share, the corporation issues a 2-for-1 stock split. The general journal entry to record this transaction is: Multiple Choice Debit Retained Earnings $355,000; credit Common Stock $355,000. Debit Retained Earnings $1,065,000; credit Common Stock Split Distributable $1,065,000. No entry is made for this transaction. Debit Retained Earnings $1,065,000; credit Common Stock $1,065,000. Debit Retained Earnings $355,000; credit Stock Split Payable $355,000.
Pettygrove Company had 1,500,000 shares of $10 par value common stock outstanding. The amount of additional paid-in capital is $7,500,000, and Retained Earnings is $2,250,000. The company issues a 2-for-1 stock split. The market price of the stock is $13. What is the balance in the Common Stock account after this issuance? Multiple Choice $30,000,000 $34,500,000 $15,000,000 $22,500,000
A corporation, which had 37,300 shares of common stock outstanding, declared a 5-for-1 stock split. a. What will be the number of shares outstanding after the split?fill in the blank 7511bf07efebf9c_1 shares b. If the common stock had a market price of $180 per share before the stock split, what would be an approximate market price per share after the split?$fill in the blank 7511bf07efebf9c_2 per share c. Journalize the entry to record the stock split. If no entry is required, type "No Entry" and leave the amount boxes blank. blank - Select - - Select - - Select - - Select -
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
The Liang Company's balance sheet has the following capital section. Liang's stock is currently selling for $5 per share. Common Stock (50,000 shares at $1 par) $50,000 Capital in Excess of Par 50,000 Retained Earnings 100,000 $200,000 If Liang declared a 10% stock dividend instead of doing the stock split, what would the relevant section of the balance sheet look like?
A company issues 10,000 shares of its own $10 par value common stock to the public for $19 per share. Later, 1, 000 of these shares are bought for $21 per share as treasury stock. Which of the Losses on the resale of these shares would impact reported net income for the year although gains would not The par value method and the cost method have the same total impact on stockholders equity Because this is a stock transaction, retained earnings cannot be affected by a re - issuance of these shares
During May, Deckers Outdoor Corporation announced a 3-for-1 stock split. This brought the number of shares outstanding from 12,896,000 shares to _____ shares, and its $0.90 par value to _____ per share. A. 4,298,667; $2.70 B. 4,298,667; $0.30 C. 38,688,000; $0.30 D. 38,688,000; $2.70
Whispering Corporation has 8,700 shares of $100 par value, 9%, preferred stock and 48,300 shares of $10 par value common stock outstanding at December 31, 2020. Answer the questions in each of the following independent situations. (a) If the preferred stock is cumulative and dividends were last paid on the preferred stock on December 31, 2017, what are the dividends in arrears on December 31, 2020, balance sheet? The amount of dividends in arrears on the December 31, 2020
On OCT 31, the stockholders' equity section of MCompany's balance sheet consists of common stock $648,000 and retained earnings $400,000. MCompany is considering the following two courses of action: (1) declaring a 5% stock dividend on the 81,000 $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 $17 per share. Instructions Prepare a tabular summary of the effects of the alternative actions on the company's stockholders' equity and outstanding shares. Use these column headings: Before Action, After Stock Dividend, and After Stock Split. Before Action Stockholders' equity: Paid-in Capital Retained Earnings Total Stockholders Equity $ 1,048,000 $ 648,000 400,000 81,000 After Stock Dividend After Stock Split Outstanding Shares (1) By choosing stock dividend, you will be distributing 5% additional shares over the 81,000 shares "before the action". The "paid-in capital" of the stock dividend is…
On July 1, Davidson Corporation had the following capital structure: Common stock ($3 par value) Additional paid-in capital Retained earnings Treasury stock $ 642,000 1,080,000 770,000 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. Items Common stock account Par value per share Shares outstanding Additional paid-in capital Retained earnings Total stockholders' equity Before Dividend and Split $ $ $ 0 3.00 1,080,000 770,000 After Stock Dividend

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