On September 1, Reedy Company has 500,000 shares of $30 par value ($330 market value)common stock that are issued and outstanding. Its balance sheet on that date shows the followingaccount balances relating to its common stock:Common stock15,000,000Paid-in capital in excess of par value9,000,000On September 2, Reedy splits its stock 3-for-2 and reduces the par value to $20 per share. Howmany shares of common stock are issued and outstanding immediately after the stock split?a.500,000 sharesb.333,333 sharesC.750,000 sharesd.15,000,000 shares

Stock splits: Stock split means dividing single stock into multiple number of shares. Under stock…

Answered: On September 1, Reedy Company has…

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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K Michael Corporation has the following information as of December 31 of the current year: Common Stock, $1 par value (authorized 16,261 shares) Treasury Stock (2,300 shares at cost) Common Stock Outstanding (2,600 shares) Based on the information above, how many shares of common stock are issued? A. 2,300 OB. 2,600 C. 4,900 D. 16,261 $15,000
Selected transactions completed by Primo Discount Corporation during the current fiscal year are as follows: Jan. 9 Split the common stock 3 for 1 and reduced the par from $75 to $25 per share. After the split, there were 1,200,000 common shares outstanding. Feb. 28 Purchased 40,000 shares of the corporation’s own common stock at $28, recording the stock at cost. May 1 Declared semiannual dividends of $0.80 on 75,000 shares of preferred stock and $0.12 on the common stock to stockholders of record on June 1, payable on July 10. Jul. 10 Paid the cash dividends. Sep. 7 Sold 30,000 shares of treasury stock at $34, receiving cash. Oct. 1 Declared semiannual dividends of $0.80 on the preferred stock and $0.12 on the common stock (before the stock dividend). In addition, a 2% common stock dividend was declared on the common stock outstanding. The fair market value of the common stock is estimated at $36. Dec. 1 Paid the cash dividends and issued the certificates for the…
Nutritious Pet Food Company’s board of directors declares a small stock dividend (20%) on June 30 when the stock’s market value per share is $30. At that time, there are 10,000 shares of $1 par value common stock outstanding (none held in treasury). What is the journal entry to record the declaration of the dividend?
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.
On October 10, the stockholders’ equity of Sherman Systems appears as follows. Common stock–$10 par value, 84,000 sharesauthorized, issued, and outstanding $ 840,000 Paid-in capital in excess of par value, common stock 276,000 Retained earnings 960,000 Total stockholders’ equity $ 2,076,000 1. Prepare journal entries to record the following transactions for Sherman Systems. Purchased 6,200 shares of its own common stock at $37 per share on October 11. Sold 1,300 treasury shares on November 1 for $43 cash per share. Sold all remaining treasury shares on November 25 for $32 cash per share.
Mt. Everst Company has $1,000,000 shares of 10%, $20 Par Value Preferred Stock outstanding. On December 1st, the Board of Directors declares a 4% Stock Dividend to be issued to the shareholders of record on December 15th and distributed on December 30th. The market price of the stock on December 1st was $25 per share. Calculate the amount the Company would Debit to Stock Dividends on December 15th: Calculate the amount the Company would Credit to Additional Paid in Capital…Preferred Stock on December 15:
Jackson Enterprises has the following capital (equity) accounts: Common stock ($1 par; 200,000 shares outstanding) $ 200,000 Additional paid-in capital 50,000 Retained earnings 250,000 The board of directors has declared a 15 percent stock dividend on January 1 and a $0.25 cash dividend on March 1. What changes occur in the capital accounts after each transaction if the price of the stock is $4? Round the number of shares outstanding to the nearest whole number and the other answers to the nearest dollar. The impact of the 15 percent stock dividend:
Nowell Inc. had the following stock issued and outstanding as of January 1, Year 2: 1. 150,000 shares of no-par common stock. 2. 30,000 shares of $50 par, 4 percent, cumulative preferred stock. (Dividends are in arrears for one year, Year 1.) On March 8, Year 2, Nowell declared a $175,000 cash dividend to be paid March 31 to shareholders of record on March 20. a. What amount of dividends will be paid to the preferred shareholders versus the common shareholders?
nts CFAS Company showed the following information from its shareholders' equity at year-end before the effect of the transaction below: Ordinary share capital P6,250,000 Share premium 3,125,000 Retained earnings 3,724,000 Treasury shares (at cost) 1,530,000 The ordinary shares were originally issued for P187.50 per share. At the end of the year, CFAS Company retired 5,100 shares held in treasury. The treasury shares had a P125 par value per share and an average cost per share of P300. (Input your answers as figures, do NOT put any comma, peso sign or extra spaces. E.g. if your answer is one thousand, please input 1000): 1. How much is the adjusted ordinary share capital at year end? 2. How much is the adjusted share premium at year end? 3. How much is the adjusted balance of retained earnings at year end?
Matthew Corporation is authorized to issue 1,500,000 shares of its P10 share, par Ordinary Shares. It has issued half of the stock for P16 recorded net income of P2,000,000, declared but has not yet paid cash dividend of P150,000 and has split its stock 2:1 all during the first year of per operations. How much is the total stockholders' equity at the end of its first year operations?
Sanders Corporation has the following shares outstanding: 6,000 shares of $50 par value, 6% preferred stock and 40,000 shares of $1 par value common stock. The company has $328,000 of retained earnings. At year-end, the company declares its regular $3.00 per share cash dividend on the preferred stock and a $2.20 per share cash dividend on the common stock. Three weeks later, the company pays the dividends. a. Determine the financial statement effect of the declaration of the cash dividends. b. Determine the financial statement effect of the payment of the cash dividends Balance Sheet Income Statement Assets Liabilities Equity Revenues Expenses = Net Income %3D + а. b.
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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