**Recording Stock Dividends and Stock Splits**The records of Dixie Corporation showed the following balances on November 1, 2020:- **Common stock, $10 par, 48,000 shares outstanding:** $480,000- **Paid-in capital in excess of par:** $163,200- **Retained earnings:** $320,000The fair value of its stock is $18 per share.**Accounting for Stock Dividends** | **Accounting for Stock Splits**Prepare journal entries for the following three separate scenarios:a. The company declares (November 1, 2020) and issues (November 20, 2020) a 10% stock dividend.b. The company declares (November 1, 2020) and issues (November 20, 2020) a 10% stock dividend. Of the 4,800 stock dividend shares, 4,480 shares are whole shares and 320 shares are fractional shares. It is the company's policy to pay out fractional shares in cash.c. The company declares (November 1, 2020) and issues (November 20, 2020) a stock split effected in the form of a 100% stock dividend.**Note:** List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order.**Note:** If a journal entry isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero). For each of the following three separate scenarios, (1) record the journal entry and (2) determine the total number of shares and the par value per share after the stock split.d. The company declares (November 1, 2020) and issues (November 20, 2020) a 2-for-1 stock split.e. The company declares (November 1, 2020) and issues (November 20, 2020) a 5-for-1 stock split.f. The company declares (November 1, 2020) and issues (November 20, 2020) a 3-for-1 reverse stock split.- Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order.- Note: If a journal entry isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero).

A dividend payment given in the form of shares rather than cash is known as a stock dividend, and it…

Answered: Recording Stock Dividends and Stock…

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

Preparing a Stockholders' Equity Section On December 31, 2020, Polar Inc. had the following account balances. Preferred stock, $10 par value $300,000 Paid in capital in excess of par-Preferred stock 24,000 Common stock, $1 par value 16,000 Paid in capital in excess of par-Common stock 80,000 Retained earnings 440,000 Accumulated other comprehensive loss (12,000) Prepare the stockholders' equity section of the balance sheet for Polar Inc. at December 31, 2020. Ignore disclosure on number of shares. Stockholders' Equity Section December 31, 2020 Preferred stock, par $10 Common stock, par $1 Paid-in capital in excess of par Retained earnings Accumulated other comprehensive loss Total stockholders' equity $
Current Attempt in Progress Concord Corporation has 43,500 shares of $12 par value common stock outstanding. It declares a 15% stock dividend on December 1 when the market price per share is $19. The dividend shares are issued on December 31. • Prepare the entries for the declaration and issuance of the stock dividend. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation ◆ Debit Credit 1000
Gadubhai
Don't provide answers in image format
Comparative Statements of Shareholders' Equity for Locke Intertechnology Corporation were reported as follows for the fiscal years ending December 31, 2019, 2020, and 2021. Balance at January 1, 2019 sale of preferred shares sale of common shares, 7/1 Cash dividend, preferred Cash dividend, common Net income Balance at December 31, 2019 Retirement of common shares, 4/11 Cash dividend, preferred Cash dividend, common 3-for-2 split effected in the form of a common stock dividend, 8/12 Net income Balance at December 31, 2020 18% common stock dividend, 5/1 sale of common shares, 9/1 Cash dividend, preferred Cash dividend, common Net income Balance at December 31, 2021 Year 2019 2020 2021 LOCKE INTERTECHNOLOGY CORPORATION statements of shareholders' Equity For the Years Ended Dec. 31, 2019, 2020, and 2021 ($ in millions) Numerator / Denominator = Earnings per share 1 1 1 = Preferred stock, $10 par 12 12 12 $12 Common stock, $1 par 80 $ 11 91 (4) 43.5 130.5 13.05 3 $146.55 Additional Paid-in…
please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image)
Zen Aerospace Corporation reported the following equity account balances on December 31, 2022: Preferred shares, $3.60 cumulative, unlimited shares authorized Common shares, unlimited shares authorized, 23,500 shares issued and outstanding Retained earnings 648,600 331,000 In 2023, the company had the following transactions affecting shareholders and the shareholders' equity accounts: Jan. 1 Purchased and retired 2,700 common shares at $36 per share. 14 The directors declared an 9% share dividend distributable on February 5 to the January 30 shareholders of record. The shares were trading at $46.30 per share. 30 Date of record regarding the 9% share dividend. 5 Date of distribution regarding the 9% share dividend. Feb. July 6 Sold 5,700 preferred shares at $67 per share. Sept. 5 The directors declared a total cash dividend of $48,006 payable on October 5 to the September 20 shareholders of record. Oct. 5 The cash dividend declared on September 5 was paid. Dec. 31 Closed the $472,600…
Journalizing dividends and treasury stock transactions and preparing the stockholders’ equity section of the balance sheet Deerborn Manufacturing Co. completed the following transactions during 2018: Requirements Record the transactions in Deerborn’s general journal. Prepare the Deerborn’s stockholders’ equity section of the balance sheet as of December 31, 2018. Assume that Deerborn was authorized to issue 2,600 shares of preferred stock and 400,000 shares of common stock. Both preferred stock and Common stock were issued at par. The ending balance of retained earnings as of December 31, 2018, is $2,060,000.
Identifying and Analyzing Financial Statement Effects of Stock Transactions Melo Company reports the following transactions relating to its stock accounts in the current year. Use the financial statement effects template to indicate the effects from each of these transactions. (a) Mar. 2 Issued 14,000 shares of $1 par value common stock at $30 cash per share. (b) Apr. 14 Issued 21,000 shares of $100 par value, 8% preferred stock at $250 cash per share. (c) June. 30 Purchased 4,200 shares of its own common stock at $22 cash per share. (d) Sep. 25 Sold 2,100 shares of its treasury stock at $26 cash per share. Note: For each account category, indicate the appropriate account name. Enter "N/A" for
Required information [The following information applies to the questions displayed below] On June 30, Sharper Corporation's stockholders' equity section of its balance sheet appears as follows before any stock dividend or split. Sharper declares and immediately distributes a 50% stock dividend. Common stock-$10 par value, 68,000 shares issued and outstanding Paid-in capital in excess of per value, common stock Retained earnings Total stockholders' equity Complete this question by entering your answers in the tabs below. Assume that instead of distributing a stock dividend, Sharper did a 3-for-1 stock split. (1) Prepare the updated stockholders' equity section after the split. (2) Compute the number of shares outstanding after the split. Required 1 Required 2 Prepare the updated stockholders' equity section after the split. SHARPER CORPORATION Stockholders' Equity Section of the Balance Sheet June 30 Common stock-$3.33 par value Paid-in capital in excess of par value, common stock…
Recording Stock Issue Costs Stellar Inc. issued 48,000 shares of common stock, $0.01 par value, for $28 per share on March 28, 2020. Related to this transaction, Stellar incurred legal and administrative costs totaling $9,600, paid in cash. Required Prepare the journal entry on March 28, 2020, for the issuance of common shares. Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order. Date Account Name Dr. Cr. March 28, 2020
Comparative statements of shareholders’ equity for Anaconda International Corporation were reported as follows for the fiscal years ending December 31, 2021, 2022, and 2023. ANACONDA INTERNATIONAL CORPORATIONStatements of Shareholders' EquityFor the Years Ended Dec. 31, 2021, 2022, and 2023($ in millions) Preferred Stock$10 par Common Stock$1 par AdditionalPaid-In Capital Retained Earnings TotalShareholders' Equity Balance at January 1, 2021 65 520 1,860 2,445 Sale of preferred shares 30 900 930 Sale of common shares 7 56 63 Cash dividend, preferred (3 ) (3 ) Cash dividend, common (17 ) (17 ) Net income 340 340 Balance at December 31, 2021 30 72 1,476 2,180 3,758 Retirement of shares (2 ) (16 ) (24 ) (42 ) Cash dividend, preferred…

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS