Stock Dividend Pranks, Inc. is a manufacturer of joke and novelty products for perpetrators of practical jokes. The corporation has paid several cash dividends throughout Year 6, the current year. It is also declaring a stock dividend to its stockholders as the calendar year-end approaches. You've been brought in as a consultant to assist with this process, and also to help determine whether some missing information can be determined before the distribution. of the stock dividend is made. The company has two classes of stock: common stock and cumulative preferred stock. Number of common shares authorized Number of common shares issued Par value of common shares Par value of cumulative preferred shares Paid-in capital in excess of par-common stock Paid-in capital in excess of par-preferred stock Total retained earnings before the stock dividend is declared No treasury share have been reissued. Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Total Cash Dividends 30,000 54,000 105,000 135,000 Preferred Dividends Total 30,000 54,000 51,000 45,000 45,000 153,000 225,000 45,000 Per Share 0.20 0.36 0.34 0.3 0.3 0.3 Total paid-in capital before the stock dividend Total retained earnings before the stock dividend Total stockholders' equity before the stock dividend Total Total paid-in capital after the stock dividend Total retained earnings after the stock dividend Total stockholders' equity after the stock dividend 0 0 900,000 750,000 Common Dividends 54,000 90,000 108,000 180,000 $7,000,000 $33,500,000 $20 $30 Per Share 0.00 0.00 0.09 0.15 0.18 0.3 $0 The company declared a 2% common stock dividend on December 1, and would like you to compute the following pieces of missing information. The market value of the common shares is $26 on December 1, and is $30 on the actual distribution date of the stock, December 31. Fill in the missing information in the following table, using the information given and your work on the other panels. All "before" items are before the stock dividend was declared. All "after" items are after the stock dividend was declared and closing entries were recorded at the end of the year.
Stock Dividend Pranks, Inc. is a manufacturer of joke and novelty products for perpetrators of practical jokes. The corporation has paid several cash dividends throughout Year 6, the current year. It is also declaring a stock dividend to its stockholders as the calendar year-end approaches. You've been brought in as a consultant to assist with this process, and also to help determine whether some missing information can be determined before the distribution. of the stock dividend is made. The company has two classes of stock: common stock and cumulative preferred stock. Number of common shares authorized Number of common shares issued Par value of common shares Par value of cumulative preferred shares Paid-in capital in excess of par-common stock Paid-in capital in excess of par-preferred stock Total retained earnings before the stock dividend is declared No treasury share have been reissued. Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Total Cash Dividends 30,000 54,000 105,000 135,000 Preferred Dividends Total 30,000 54,000 51,000 45,000 45,000 153,000 225,000 45,000 Per Share 0.20 0.36 0.34 0.3 0.3 0.3 Total paid-in capital before the stock dividend Total retained earnings before the stock dividend Total stockholders' equity before the stock dividend Total Total paid-in capital after the stock dividend Total retained earnings after the stock dividend Total stockholders' equity after the stock dividend 0 0 900,000 750,000 Common Dividends 54,000 90,000 108,000 180,000 $7,000,000 $33,500,000 $20 $30 Per Share 0.00 0.00 0.09 0.15 0.18 0.3 $0 The company declared a 2% common stock dividend on December 1, and would like you to compute the following pieces of missing information. The market value of the common shares is $26 on December 1, and is $30 on the actual distribution date of the stock, December 31. Fill in the missing information in the following table, using the information given and your work on the other panels. All "before" items are before the stock dividend was declared. All "after" items are after the stock dividend was declared and closing entries were recorded at the end of the year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Stock Dividend
Pranks, Inc.
Pranks, Inc. is a manufacturer of joke and novelty products for perpetrators of practical jokes. The corporation has
paid several cash dividends throughout Year 6, the current year. It is also declaring a stock dividend to its
stockholders as the calendar year-end approaches. You've been brought in as a consultant to assist with this
process, and also to help determine whether some missing information can be determined before the distribution
of the stock dividend is made. The company has two classes of stock: common stock and cumulative preferred
stock.
Number of common shares authorized
Number of common shares issued
Par value of common shares
Par value of cumulative preferred shares
Paid-in capital in excess of par-common stock
Paid-in capital in excess of par-preferred stock
Total retained earnings before the stock dividend is declared
No treasury share have been reissued.
Year
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Total Cash
Dividends
30,000
54,000
105,000
135,000
153,000
225,000
Preferred Dividends
Total
30,000
54,000
51,000
45,000
45,000
45,000
Per Share
0.20
0.36
0.34
0.3
0.3
0.3
Total paid-in capital before the stock dividend
Total retained earnings before the stock dividend
Total stockholders' equity before the stock dividend
Total
Total paid-in capital after the stock dividend
Total retained earnings after the stock dividend
Total stockholders' equity after the stock dividend
0
Common Dividends
0
900,000
750,000
54,000
90,000
108,000
180,000
$7,000,000
$33,500,000
Per Share
0.00
0.00
0.09
$20
$30
0.15
0.18
0.3
$0
The company declared a 2% common stock dividend on December 1, and would like you to compute the following
pieces of missing information. The market value of the common shares is $26 on December 1, and is $30 on the
actual distribution date of the stock, December 31.
Fill in the missing information in the following table, using the information given and your work on the other
panels. All "before" items are before the stock dividend was declared. All "after" items are after the stock dividend
was declared and closing entries were recorded at the end of the year.
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