On October 31, the stockholders' equity section of Oriole Company consists of common stock $270,000 and retained earnings$884,000. Oriole is considering the following two courses of action: (1) declaring a 4% stock dividend on the 27,000, $10 par valueshares outstanding, or (2) effecting a 2-for-1 stock split that will reduce par value to $5 per share. The current market price is $16 pershare.Prepare a tabular summary of the effects of the alternative actions on the components of stockholders' equity, outstanding shares, andpar value per share.Stockholders' equityPaid-in capitalCommon stockIn excess of parTotal paid-in capitalRetained earningsTotal stockholders' equity $Outstanding shares$Par value per share$BeforeAction$$AfterStockDividend$$$AfterStockSplit

A summary of effects of alternative actions on the components of stockholders’ equity is a report…

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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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.
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.
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
All computations and Formula must be done and shown in detail Billingsley United declared a $0.20 a share dividend on Thursday, October 16. The dividend will be paid on Monday, November 10 to shareholders of record on Friday, October 31. What is the ex-dividend date? You own 2,200 shares of Deltona Hardware. The company has stated that it plans on issuing a dividend of $0.42 a share at the end of this year and then issuing a final liquidating dividend of $2.90 a share at the end of next year. Your required rate of return on this security is 16 percent. Ignoring taxes, what is the value of one share of this stock to you today? Tucker’s National Distributing has a current market value of equity of $10,665. Currently, the firm has excess cash of $640, total assets of $22,400, net income of $3,210, and 500 shares of stock outstanding. Tucker’s is going to use all of its excess cash to repurchase shares of stock. What will the stock price per share be after the stock…
The owners’ equity accounts for Vulcano International are shown here: Common stock ($.50 par value) $ 20,000 Capital surplus 210,000 Retained earnings 587,300 Total owners’ equity $ 817,300 a-1. If the company declares a 4-for-1 stock split, how many shares are outstanding now? (Do not round intermediate calculations.) a-2. What is the new par value per share? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) b-1. If the company declares a 1-for-5 reverse stock split, how many shares are outstanding now? (Do not round intermediate calculations.) b-2. What is the new par value per share? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
The owners' equity accounts for Mars International are shown here: Common stock ($.50 par value) Capital surplus Retained earnings Total owner's equity Please show the equity accounts will change if: a. The company declares a 5-for-1 stock split. How many shares are outstanding now? What is the new par value per share? b. The company declares a 1-for-4 reverse stock split. $20,000 210,000 587,300 $817,300 c. The balance sheet for Mars International is shown below in Market value terms. There are 12,000 shares of stock outstanding. Market Value Balance Sheet Equity $817,300 Cash $ 99,660 Fixed assets 717,640 Total $817,300 Total $817,300 The company has declared a dividend of $1.45 per share. The stock goes ex dividend tomorrow. Ignoring any tax effects, what is the stock selling for today? What will it sell for tomorrow? What will the balance sheet look like after the dividends are paid? d. suppose the company has announced it is going to repurchase $17,400 worth of stock. What effect…
I'm having trouble compiling the Shareholder's Equity Section of the balance sheet. Please help! The balance sheet of Consolidated Paper, Inc., included the following shareholders’ equity accounts at December 31, 2020: Paid-in capital: Preferred stock, 7.5%, 98,000 shares at $1 par $ 98,000 Common stock, 484,800 shares at $1 par 484,800 Paid-in capital—excess of par, preferred 1,595,000 Paid-in capital—excess of par, common 2,645,000 Retained earnings 9,745,000 Treasury stock, at cost; 4,800 common shares (52,800 ) Total shareholders' equity $ 14,515,000 During 2021, several events and transactions affected the retained earnings of Consolidated Paper. Required: 1. Prepare the appropriate entries for these events. On March 3, the board of directors declared a property dividend of 290,000 shares of Leasco International common stock that Consolidated Paper had purchased in January as an investment (book value: $552,000). The investment shares had a fair value of $2 per share and were…
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 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.
Lenore, Inc. declared a cash dividend of $90,000 in 2021 when the following stocks were outstanding: Common stock 30,000 shares, $5 par value $150,000 Preferred stock, 6%, 6,000 shares, $50 par value $300,000 No dividends were declared or paid during the prior two years. Required: Compute the amount of dividends that would be paid to each stockholder group if the preferred stock is noncumulative. Compute the amount of dividends that would be paid to each stockholder group if the preferred stock is cumulative.
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?

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