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Stock Dividend Comparison Although Oriole Company has enough retained earnings legally to declare a dividend, its working capital is low. The board of directors is considering a stock dividend instead of a cash dividend. The common stock currently selling at $34 per share. The following Oriole's current shareholders' equity: Common stock, $10 par $400,000 800,000 Additional paid-in capital on common stock Total contributed capital Retained earnings $1,200,000 1,300,000 $2,500,000 Total shareholders' equity Required: 1. Assuming a 15% stock dividend is declared and issued, prepare the shareholders' equity section immediately after the date of issuance. Oriole Company Stockholders' Equity Common stock, $10 par Additional paid-in capital on common stock Total contributed capital Retained earnings Total shareholders' equity 2. Assuming, instead, that a 30 % stock dividend is declared and issued, prepare the shareholders' equity section immediately after the date of issuance. Oriole Company Shareholders' Equity Common stock, $10 par Additional paid-in capital on common stock Total contributed capital Retained earnings Total shareholders' equity

Stock Dividend Comparison Although Oriole Company has enough retained earnings legally to declare a dividend, its working capital is low. The board of directors is considering a stock dividend instead of a cash dividend. The common stock currently selling at $34 per share. The following Oriole's current shareholders' equity: Common stock, $10 par $400,000 800,000 Additional paid-in capital on common stock Total contributed capital Retained earnings $1,200,000 1,300,000 $2,500,000 Total shareholders' equity Required: 1. Assuming a 15% stock dividend is declared and issued, prepare the shareholders' equity section immediately after the date of issuance. Oriole Company Stockholders' Equity Common stock, $10 par Additional paid-in capital on common stock Total contributed capital Retained earnings Total shareholders' equity 2. Assuming, instead, that a 30 % stock dividend is declared and issued, prepare the shareholders' equity section immediately after the date of issuance. Oriole Company Shareholders' Equity Common stock, $10 par Additional paid-in capital on common stock Total contributed capital Retained earnings Total shareholders' equity

FINANCIAL ACCOUNTING
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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Stock Dividend Comparison Although Oriole Company has enough retained earnings legally to declare a dividend, its working capital is low. The board of directors is considering a stock dividend instead of a cash dividend. The common stock is currently selling at $34 per share. The following is Oriole's current shareholders' equity: Common stock, $10 par Additional paid-in capital on common stock Total contributed capital $400,000 800,000 $1,200,000 1,300,000 $2,500,000 Retained earnings Total shareholders' equity Required: 1. Assuming a 15% stock dividend is declared and issued, prepare the shareholders' equity section immediately after the date of issuance. Oriole Company Stockholders' Equity Common stock, $10 par Additional paid-in capital on common stock Total contributed capital Retained earnings Total shareholders' equity 2. Assuming, instead, that a 30% stock dividend is declared and issued, prepare the shareholders' equity section immediately after the date of issuance. Oriole Company Shareholders' Equity Common stock, $10 par Additional paid-in capital on common stock Total contributed capital Retained earnings Total shareholders' equity
Transcribed Image Text:Stock Dividend Comparison Although Oriole Company has enough retained earnings legally to declare a dividend, its working capital is low. The board of directors is considering a stock dividend instead of a cash dividend. The common stock is currently selling at $34 per share. The following is Oriole's current shareholders' equity: Common stock, $10 par Additional paid-in capital on common stock Total contributed capital $400,000 800,000 $1,200,000 1,300,000 $2,500,000 Retained earnings Total shareholders' equity Required: 1. Assuming a 15% stock dividend is declared and issued, prepare the shareholders' equity section immediately after the date of issuance. Oriole Company Stockholders' Equity Common stock, $10 par Additional paid-in capital on common stock Total contributed capital Retained earnings Total shareholders' equity 2. Assuming, instead, that a 30% stock dividend is declared and issued, prepare the shareholders' equity section immediately after the date of issuance. Oriole Company Shareholders' Equity Common stock, $10 par Additional paid-in capital on common stock Total contributed capital Retained earnings Total shareholders' equity
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