P12-8. Dividend in shares: Columbia Paper company has the following account of shareholders' equity. The current market price of the company's common stock is $ 30 per share. Preferred stock 100,000 Common Stocks (100,000 shares at $ 2 20,000 par value) Additional paid capital 280,000 Retained earnings 100,000 Total shareholders' equity $ 500,000 a. Show the effects of a 5% stock dividend. b. Show the effects of a stock dividend of: 1) 10% and 2) 20% c. Based on your answers to items a and b, analyze the effects of stock dividends on shareholders' equity. d. Discuss the advantages and disadvantages of each dividend policy described in items ab c.

P12-8. Dividend in shares: Columbia Paper company has the following account of shareholders' equity. The current market price of the company's common stock is $ 30 per share. Preferred stock 100,000 Common Stocks (100,000 shares at $ 2 20,000 par value) Additional paid capital 280,000 Retained earnings 100,000 Total shareholders' equity $ 500,000 a. Show the effects of a 5% stock dividend. b. Show the effects of a stock dividend of: 1) 10% and 2) 20% c. Based on your answers to items a and b, analyze the effects of stock dividends on shareholders' equity. d. Discuss the advantages and disadvantages of each dividend policy described in items ab c.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Your answer is partially correct. Try again. The stockholders' equity section of Bonita Corporation consists of common stock ($10 par) $2,400,000 and retained earnings $527,000. A 10% stock dividend (24,000 shares) is declared when the market price per share is $14. Show the before-and-after effects of the dividend on the following. (a) The components of stockholders' equity. (b) Shares outstanding. (c) Par value per share. Stockholders' equity Outstanding shares. Par value per share x ✓ Before Dividend 2927000 After Dividend
Required information [The following information applies to the questions displayed below.] Raphael Corporation's balance sheet shows the following stockholders' equity section. Preferred stock-5% cumulative, $ par value, 1,000 shares authorized, issued, and outstanding Common stock-$ par value, 4,000 shares authorized, issued, and outstanding Retained earnings Total stockholders' equity $ 60,000 120,000 340,000 $ 520,000 2. If two years' preferred dividends are in arrears at the current date and the board of directors declares cash dividends of $19,400, compute the total amount paid to (a) preferred shareholders and (b) common shareholders. a. Total amount paid to the preferred shareholders b. Total amount paid to the common shareholders
Assume that a company has the following information: Common Stock Information: # of shares issued and outstanding Par value per share 20,000 $9 Stockholders' Equity section of the Balance Sheet: Common Stock $180,000 Additional Paid in Capital Retained Earnings Total Stockholders' Equity $3,000,000 $4,820,000 $8,000,000 The company has the option of EITHER announcing a 3:1 stock split OR declaring a 200% stock dividend. Fill in the blanks below to show the stockholders' equity balances under each of these options. After After Current 3:1 200% Situation Stock Split Stock Dividend Common Stock Information: # of shares issued and outstanding 20,000 Par value per share $9 Stockholders' Equity section of the Balance Sheet: Common Stock $180,000 Additional Paid in Capital $3,000,000 Retained Earnings $4,820,000 Total Stockholders' Equity $8,000,000 II IIII
How many shares of preferred stock have been issued? How many shares of common stock have been issued? Total paid-in capital is $81.60 million. At what average price per share were the common shares issued?
Thunder Yard's total stockholders' Equity is P5,600.000, comprised of the following: • P1,000,000 in 8% cumulative preferred stock consisting of shares of P100 par value • P1,800,000 in Ordinary Shares of P5 par value per share issued at P8 • P1,600,000 in additional Paid in capital P1,200,000 in retained earnings There is a Dividend in Arrears for 2 years 1. Compute for Number of shares of Preferred Stock 2. Compute for Additional Paid In Capital: Preferred Stock 3. Book Value Per Share Ordinary Shares (Round-off Answer to two decimal places)
Required information [The following information applies to the questions displayed below.] Raphael Corporation's balance sheet shows the following stockholders' equity section. Preferred stock-5% cumulative, $ par value, 1,000 shares authorized, issued, and outstanding Common stock-$ par value, 4,000 shares authorized, issued, and outstanding Retained earnings Total stockholders' equity $ 50,000 80,000 150,000 $ 280,000 2. If two years' preferred dividends are in arrears at the current date and the board of directors declares cash dividends of $11,500, compute the total amount paid to (a) preferred shareholders and (b) common shareholders.
A company declared and distributed an 8% dividend on 800,000 shares of $5 par value common stock outstanding. Market price per common share on this date was $25. What is the debit to Retained Earnings for the value of the stock dividend? O $64,000 O $320,000 O $1,600,000 O $40,000,000 79°F Rair