Homework Help is Here – Start Your Trial Now!
Business
Accounting
Scenario 2 On November 30, 2020, after preparing the shareholders' equity section shown at the beginning of this question (excluding Scenario 1), the company implemented a 4-for-1 stock split. For this scenario, assume that the stock dividend in scenario 1 did not happen; consider only the original balance sheet. a) Calculate the number of outstanding shares. Outstanding shares: shares b) Prepare the shareholders' equity section of the balance sheet as at November 30, 2020 (after the stock split). EFG Corporation Balance Sheet (partial) As at November 30, 2020 Shareholders' Equity Contributed Capital

Scenario 2 On November 30, 2020, after preparing the shareholders' equity section shown at the beginning of this question (excluding Scenario 1), the company implemented a 4-for-1 stock split. For this scenario, assume that the stock dividend in scenario 1 did not happen; consider only the original balance sheet. a) Calculate the number of outstanding shares. Outstanding shares: shares b) Prepare the shareholders' equity section of the balance sheet as at November 30, 2020 (after the stock split). EFG Corporation Balance Sheet (partial) As at November 30, 2020 Shareholders' Equity Contributed Capital

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

C5.7

Scenario 2 On November 30, 2020, after preparing the shareholders' equity section shown at the beginning of this question (excluding Scenario 1), the company implemented a 4-for-1 stock split. For this scenario, assume that the stock dividend in scenario 1 did not happen; consider only the original balance sheet. a) Calculate the number of outstanding shares. Outstanding shares: shares b) Prepare the shareholders' equity section of the balance sheet as at November 30, 2020 (after the stock split). EFG Corporation Balance Sheet (partial) As at November 30, 2020 Shareholders' Equity Contributed Capital Common shares, unlimited shares authorized, x shares issued and outstanding Retained Earnings Total Shareholders' Equity
Transcribed Image Text:Scenario 2 On November 30, 2020, after preparing the shareholders' equity section shown at the beginning of this question (excluding Scenario 1), the company implemented a 4-for-1 stock split. For this scenario, assume that the stock dividend in scenario 1 did not happen; consider only the original balance sheet. a) Calculate the number of outstanding shares. Outstanding shares: shares b) Prepare the shareholders' equity section of the balance sheet as at November 30, 2020 (after the stock split). EFG Corporation Balance Sheet (partial) As at November 30, 2020 Shareholders' Equity Contributed Capital Common shares, unlimited shares authorized, x shares issued and outstanding Retained Earnings Total Shareholders' Equity
On November 30, 2020, EFG Corporation's shareholders' equity section shows the following balances. EFG Corporation Balance Sheet (partial) As at November 30, 2020 Shareholders' Equity Contributed Capital Common shares, unlimited shares authorized, 32,000 shares issued and outstanding $192,000 Retained Earnings $690,000 Total Shareholders' Equity $882,000 Do not enter dollar signs or commas in the input boxes. Scenario 1 On November 30, 2020, after preparing the shareholders' equity section shown above, the company declared and immediately distributed a 60% stock dividend. The market price on the date of declaration was $10. The company recorded the stock dividends by debiting retained earnings. a) Calculate the ending balance of retained earnings after the stock dividend. EFG Corporation Calculation of Retained Earnings For the Month Ended November 30, 2020 Opening Balance Less: Stock Dividend Balance - November 30, 2020 b) Prepare the shareholders' equity section of balance sheet as at November 30, 2020 (after the stock dividend has been distributed). EFG Corporation Balance Sheet (partial) As at November 30, 2020 Shareholders' Equity Contributed Capital Common shares, unlimited shares authorized, 51,200 shares issued and outstanding Retained Earnings Total Shareholders' Equity
Transcribed Image Text:On November 30, 2020, EFG Corporation's shareholders' equity section shows the following balances. EFG Corporation Balance Sheet (partial) As at November 30, 2020 Shareholders' Equity Contributed Capital Common shares, unlimited shares authorized, 32,000 shares issued and outstanding $192,000 Retained Earnings $690,000 Total Shareholders' Equity $882,000 Do not enter dollar signs or commas in the input boxes. Scenario 1 On November 30, 2020, after preparing the shareholders' equity section shown above, the company declared and immediately distributed a 60% stock dividend. The market price on the date of declaration was $10. The company recorded the stock dividends by debiting retained earnings. a) Calculate the ending balance of retained earnings after the stock dividend. EFG Corporation Calculation of Retained Earnings For the Month Ended November 30, 2020 Opening Balance Less: Stock Dividend Balance - November 30, 2020 b) Prepare the shareholders' equity section of balance sheet as at November 30, 2020 (after the stock dividend has been distributed). EFG Corporation Balance Sheet (partial) As at November 30, 2020 Shareholders' Equity Contributed Capital Common shares, unlimited shares authorized, 51,200 shares issued and outstanding Retained Earnings Total Shareholders' Equity
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Capital Gains and Losses
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
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