On October 31, the stockholders' equity section of Pharoah Company's balance sheet consists of common stock $680,000 and retained earnings $395,000. Pharoah is considering thefollowing two courses of action:(1)(2)Declaring a 5% stock dividend on the 85,000 $8 par value shares outstandingEffecting a 2-for-1 stock split that will reduce par value to $4 per share.The current market price is $13 per share.Prepare a tabular summary of the effects of the alternative actions on the company's stockholders' equity and outstanding shares. Stockholders' equityPaid-in capitalRetained earningsBefore ActionOutstanding shares$Total stockholders' equity $Pharoah Company'sBalance SheetAfter Stock Dividend$$After Stock Split$

A stock dividend is a method of capitalizing the retained earning. There will be no distribution of…

Answered: Stockholders' equity Paid-in capital…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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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 $33 share. The following is Oriole's current shareholders' equity: Common stock, $10 par $500,000 1,000,000 Additional paid-in capital on common stock Total contributed capital $1,500,000 Retained earnings 1,200,000 $2,700,000 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…
Problem 11-2A (Algo) Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Kohler Corporation reports the following components of stockholders' equity at December 31, 2019. Common stock-$15 par value, 100,000 shares authorized, 55,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity During 2020, the following transactions affected its stockholders' equity accounts. January 2 Purchased 4,500 shares of its own stock at $20 cash per share. January 5 Directors declared a $6 per share cash dividend payable on February 28 to the February 5 stockholders of record. February 28 Paid the dividend declared on January 5. July 6 Sold 1,688 of its treasury shares at $24 cash per share. August 22 Sold 2,812 of its treasury shares at $17 cash per share. September 5 Directors declared a $6 per share cash dividend payable on October 28 to the September 25 stockholders of record. October 28 Paid the…
Earnings Per Share Calculati ons Informatlon Provlded: Common Shares Balance at the beginning of the ye ar On July 1, the company sold an additional 5,000,000 shares 8,000,000 shares Each share sold for $3.00 and had a par value of $ 0.10 Preferrred Shares Beginning of the Year End of the Year 50,000 150,000 Dividends pald to Preferred Shareholders Dividends pald to Common Sharehol ders 650, 000 1,000, 000 Ex ce pt from Income Statement Income from Continuing Operations 22,000, 000 Income from Discontinued Ope rations (aftertaxImpact) 2,100, 000 Net Income 24,100, 000 Requlred: Based on the Information provided above: 1 Prepare the Joumal entry to record the July 1 sale of shares 2 Calculate the welghted average common shares outstandi ng 3 Calculate e arnings pershare (as required). Note: Show your detal led calaulatlons.
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Nautical has two classes of stock authorized: $10 par preferred, and $1 par value common. As of the beginning of 2024, 100 shares of preferred stock and 1,800 shares of common stock have been issued. The following transactions affect stockholders' equity during 2024: March 1 Issue 1,800 additional shares of common stock for $17 per share. Issue 200 additional shares of preferred stock for $28 per share. April 1 June 1 Declare a cash dividend on both common and preferred stock of $0.60 per share to all stockholders of record on June 15. June 30 Pay the cash dividends declared on June 1. August 1 Purchase 200 shares of common treasury stock for $14 per share. October 1 Resell 100 shares of treasury stock purchased on August 1 for $16 per share. Nautical has the following beginning balances in its stockholders' equity accounts on January 1, 2024: Preferred Stock, $1,000; Common Stock, $1,800; Additional Paid-in Capital, $18,300; and Retained Earnings, $10,300. Net income for the year…
QUESTION 2 Huxley Company has 264277 shares of common stock authorized 153543 Issued and 71672 shares of treasury stock The company's board of directors declares a dividend of $0.60 per share of common stock. What is the total amount of the dividend that will be paid? Round your answer to the nearest dollar

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Stockholders' equity Paid-in capital Retained earnings Before Action Outstanding shares $ Total stockholders' equity $ Pharoah Company's Balance Sheet After Stock Dividend $ $ $ After Stock Split