Stock dividend-Firm Columbia Paper has the following stockholders' equity account. The firm's common stock has a current market price of $35 per share. Preferred stock Common stock (12,000 shares at $3 par) Paid-in capital in excess of par Retained earnings Total stockholders' equity a. Show the effects on Columbia of a 20% stock dividend. b. In light of your answers to part a, discuss the effects of stock dividend on stockholders' equity. $110,000 36,000 384,000 90,000 $620,000
Stock dividend-Firm Columbia Paper has the following stockholders' equity account. The firm's common stock has a current market price of $35 per share. Preferred stock Common stock (12,000 shares at $3 par) Paid-in capital in excess of par Retained earnings Total stockholders' equity a. Show the effects on Columbia of a 20% stock dividend. b. In light of your answers to part a, discuss the effects of stock dividend on stockholders' equity. $110,000 36,000 384,000 90,000 $620,000
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 5MCQ
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Ef 89.
![Stock dividend-Firm Columbia Paper has the following stockholders' equity account. The firm's common stock has a current market price of $35 per share.
Preferred stock
Common stock (12,000 shares at $3 par)
Paid-in capital in excess of par
Retained earnings
Total stockholders' equity
a. Show the effects on Columbia of a 20% stock dividend.
b. In light of your answers to part a, discuss the effects of stock dividend on stockholders' equity.
$110,000
36,000
384,000
90,000
$620,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7ffe4388-da54-45b7-9c19-31357d82b14c%2F458b17e4-4c02-453a-92d6-813f8e81c631%2F0liudve_processed.png&w=3840&q=75)
Transcribed Image Text:Stock dividend-Firm Columbia Paper has the following stockholders' equity account. The firm's common stock has a current market price of $35 per share.
Preferred stock
Common stock (12,000 shares at $3 par)
Paid-in capital in excess of par
Retained earnings
Total stockholders' equity
a. Show the effects on Columbia of a 20% stock dividend.
b. In light of your answers to part a, discuss the effects of stock dividend on stockholders' equity.
$110,000
36,000
384,000
90,000
$620,000
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