Required: The company is considering three alternative distributions to stockholders. Consider each alternative independently of the others. Complete the table above and show the effect on stockholders' equity as a result of each of these distributions. Use information in column B to complete columns C, D, and E. 1) Issue a 100% stock dividend. OR 2) Execute a 2-for-1 stock split. OR 3) Distribute a $5,000 cash dividend. Stockholders' Equity Contributed Capital: Number of common shares outstanding Par value per common share Common Stock, at par Additional Paid-in Capital Total Contributed Capital Retained Earnings Total Stockholders' Equity 100% 2 $5,000 At Dec 31 5,000 $1.00 $5,000 745,000 750,000 980,000 $1,730,000 Stock Dividend 2 for 1 Stock Split Cash Dividend
Required: The company is considering three alternative distributions to stockholders. Consider each alternative independently of the others. Complete the table above and show the effect on stockholders' equity as a result of each of these distributions. Use information in column B to complete columns C, D, and E. 1) Issue a 100% stock dividend. OR 2) Execute a 2-for-1 stock split. OR 3) Distribute a $5,000 cash dividend. Stockholders' Equity Contributed Capital: Number of common shares outstanding Par value per common share Common Stock, at par Additional Paid-in Capital Total Contributed Capital Retained Earnings Total Stockholders' Equity 100% 2 $5,000 At Dec 31 5,000 $1.00 $5,000 745,000 750,000 980,000 $1,730,000 Stock Dividend 2 for 1 Stock Split Cash Dividend
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![3
4
5
6
7
8
9
10 OR
11 2) Execute a 2-for-1 stock split.
12
OR
13
3) Distribute a $5,000 cash dividend.
14
15
16 Stockholders' Equity
17 Contributed Capital:
18 Number of common shares outstanding
19 Par value per common share
20
Common Stock, at par
21
Additional Paid-in Capital
22
Total Contributed Capital
23 Retained Earnings
24
25
26
27
1) Issue a 100% stock dividend.
B
Total Stockholders' Equity
100%
2
Required:
The company is considering three alternative distributions to stockholders. Consider each alternative independently of the others.
Complete the table above and show the effect on stockholders' equity as a result of each of these distributions.
Use information in column B to complete columns C, D, and E.
$5,000
At Dec 31
5,000
$1.00
$5,000
745,000
750,000
C
980,00
$1,730,000
D
Stock
Dividend
E
2 for 1 Stock
Split
F
Cash
Dividend
G
H
I
J
K](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fda398d7a-edc1-450a-bb49-fea333fc0852%2F8324abb2-863e-452c-a30a-8646e773671c%2F5lgzny9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:3
4
5
6
7
8
9
10 OR
11 2) Execute a 2-for-1 stock split.
12
OR
13
3) Distribute a $5,000 cash dividend.
14
15
16 Stockholders' Equity
17 Contributed Capital:
18 Number of common shares outstanding
19 Par value per common share
20
Common Stock, at par
21
Additional Paid-in Capital
22
Total Contributed Capital
23 Retained Earnings
24
25
26
27
1) Issue a 100% stock dividend.
B
Total Stockholders' Equity
100%
2
Required:
The company is considering three alternative distributions to stockholders. Consider each alternative independently of the others.
Complete the table above and show the effect on stockholders' equity as a result of each of these distributions.
Use information in column B to complete columns C, D, and E.
$5,000
At Dec 31
5,000
$1.00
$5,000
745,000
750,000
C
980,00
$1,730,000
D
Stock
Dividend
E
2 for 1 Stock
Split
F
Cash
Dividend
G
H
I
J
K
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