The board of directors of Tamarisk, Inc. declared a cash dividend of $2.25 per share on 30000 shares of common stock on July 15, 2020. The dividend is to be paid on August 15, 2020, to stockholders of record on July 31, 2020. The effects of the journal entry to record the payment of the dividend on August 15, 2020, are to decrease stockholders’ equity and decrease liabilities. increase stockholders’ equity and increase liabilities. decrease liabilities and decrease assets. increase stockholders’ equity and decrease assets.

Q: Cash dividends on the $10 par value common stock of Garrett Company were as follows: 1st quarter of…

A: Stockholder's Equity - Stockholder's Equity includes the amount contributed by shareholders issued…

Q: Wildhorse Co. has 1,000,000 authorized shares of $20 par value common stock. As of June 30, 2020,…

A: Journal Entry :— It is an act of recording transactions in books of account when transaction…

Q: MINNEAPOLIS, March 12, 2020 /PRNewswire/—The board of directors of Target Corporation (NYSE:TGT) has…

A: Journal entries are the primary reporting of the business transactions in the books of accounts.…

Q: Minnesota Manufacturing's balance sheet showed total common equity of $3,000,000 and 500,000 shares…

A: Book value per share can be calculated by dividing total shareholders equity at the end of the year…

Q: On Oct. 1, 2023, the board of directors of Marge Inc. declared a $1.50 per share cash dividend on…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: Ritz Company had the following stock outstanding and Retained Earnings at December 31, 2021: Common…

A: The dividend is declared to the shareholders from the retained earnings of the business. The…

Q: The shareholders’ equity of Kramer Industries includes the data shown below. During 2022, cash…

A: The cumulative preference stocks represent those stocks that contain the benefit of accumulating the…

Q: On December 31, 2023, the Bennett Company had 110,000 shares of common stock issued and outstanding.…

A: Earnings per share :— It is calculated by dividing net income available to equity shareholders by…

Q: The following account balances relate to the stockholders' equity accounts of Molder Corp. at…

A: A stock dividend is a form of dividend distributed by the entity in the form of shares. It is in the…

Q: Wildhorse Corporation issued 106,000 shares of $20 par value, cumulative, 9% preferred stock on…

A: A dividend is a distribution of profits by a company to its shareholders, usually in the form of…

Q: The records of Scorpio.com reflected the following balances in the stockholders' equity accounts at…

A: Cumulative preferred stocks are those stocks that are paid prior-year dividends first, in case if…

Q: The stockholders' equity accounts of Pina Company have the following balances on December 31, 2020.…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: Prepare the journal entries for all these transactions. Each transaction is independent from the…

A: When stock are issued at price which is more than the par value, the excess amount is transferred to…

Q: The shareholders’ equity of ILP Industries includes the items shown below. The board of directors of…

A: The preferred shareholders receives the dividend before any dividend is paid to common stockholders.…

Q: Cedar Corporation is authorized to issue 20,000 shares of 6%, $10 par, cumulative preferred stock.…

A: The journal entries are prepared to keep the record of day to day transactions of the business…

Q: Mocha Company earned net income of $110,000 during the year ended December 31, 2018. On December 15,…

A: The dividend is declared to the shareholders from the business's retained earnings. The net income…

Q: Grouper Company reported the following amounts in the stockholders' equity section of its December…

A: Declared Dividend on common stock = rate of dividend * number of outstanding common stockDeclared…

Q: The board of directors of Bramble Corp. declared a cash dividend of $1.30 per share on 36000 shares…

A: Cash dividends are the distributions of accumulated retained earnings of the company to its…

Q: During 2019, Crockett, Inc.'s net income was $200,000. Its common stockholders equity was $700,000…

A: given that, net income for the year = $200000 common stockholders equity at the beginning of the…

Q: y 7 (6) Listed below are the transactions that affected the shareholders’ equity of Branch-Rickie…

A: Shareholder's equity is the section in the balance sheet that shows the total equity available to…

Q: The board of directors of Blue Spruce Corp. declared a cash dividend of $2.45 per share on 32000…

A: Dividend is always paid on the outstanding shares of equity in the balance sheet.

Q: Madison Company earned net income of $75,000 during the year ended December 31, 2018. On December…

A: Annual Dividend to Preferred shareholders = Par value of preferred share x rate of dividend =…

Q: The following information pertains to Maxwell Corporation. Assume that all balance sheet amounts…

A: DEBT TO EQUITYDebt to Equity Ratio is the ratio between Total Debt  to Total Equity. Total Debt…

Q: Lockhart Industries reported total stockholders' equity of $415,000 on its balance sheet dated…

A: Formula =  Total stockholders equity ending = Total stockholders equity beginning + additional…

Q: ormation to answer the questions 34 and 35. con Corporation had 40,000 shares of $10 k issued and…

A: The treasury stock includes the own shares of the company repurchased from the shareholders.

Q: Teal Corporation is preparing its December 31, 2025, balance sheet. The following items may be…

A: Current liabilities :— It is the liabilities that would expected to be settled within one year.…

Q: On December 31, 2020, Oriole, Inc. has 4100 shares of 4% $100 par value cumulative preferred stock…

A: Dividend is the amount of profit being distributed to shareholders. It can be cash dividend,…

Q: On January 1, 2021, Oriole Corporation had 1,020,000 shares of common stock outstanding. On March 1,…

A: Earnings per share (EPS) is calculated by dividing the net income earned by the Company by the…

Q: The board of directors of Skysong, Inc. declared a cash dividend of $2.05 per share on 37000 shares…

A: Total dividend paid = No. of common stock c dividend per share =37000*$2.05 = $75,850

Q: Shareholders’ Equity ($ in millions) Common stock, 70 million shares at $1 par $ 70   Paid-in…

A: Weighted average method : Total treasury stock = 1 million + 2 million = 3 Million Total cost =…

Q: Assume that the records of Ardell Consulting show the following balances in the stockholders' equity…

A: a) If the preferred stock is noncumulative, the distribution will be allocated as: Common…

Q: On August 15, 2021, EasyMoney, Inc.'s Board of Directors meets and declares that EasyMoney will pay…

A: Cash dividends are  distribution of accumulated earnings by a companies to its stockholders.…

Q: Listed below are the transactions that affected the shareholders’ equity of Branch-Rickie…

A: Journal entries are used to hold track of financial transactions. You enter transaction data into…

Q: Common stock, $10 par,  290,000 shares issued and outstanding   $ 2,900,000 Paid-in capital in…

A: Solution:- Preparation of journal entries for each of the following cases as follows:-

Q: Listed below are the transactions that affected the shareholders' equity of Branch-Rickie…

A: A cash dividend is the distribution of funds or money paid to stockholders generally as part of…

Q: During 2021, TNL Systems reacquired shares of its common stock and later sold shares in two separate…

A: Treasury stocks refers to shares that are reacquired or repurchase by company from market. When…

Q: Doug Graves Cemetery had 69,000 shares of common stock issued and outstanding at January 1, 2021.…

A: Shares after stock split = Shares issued*2/1

Q: On January 1, 2020, the stockholders’ equity section of Skysong, Inc. shows common stock ($6 par…

A: We know that treasury stock is the stock which is purchase by the company from open market, it also…

Q: The board of directors of Wayne Co. declared a cash dividend of $1.50 per share on 42,000 shares of…

A: Cash dividend is paid out of surplus or the reserves of the company Company can pay cash dividend or…

Q: The stockholders’ equity accounts of Cheyenne Company have the following balances on December 31,…

A: Company means a form of business where the share holder invest money in business in form of shares…

Q: Mustang Corporation had 100,000 shares of $2 par value common stock outstanding. On December 31,…

A: Journal Entry :— It is an act of recording transactions in books of account when transaction…

Q: Blue Spruce Corp. has 15000 shares of 5%, $100 par value, cumulative preferred stock and 30000…

A: Annual preference dividend=Number of share×Par value×5%=15,000×$100×5%=$75,000

Q: What was Bubba's net income for 2020?

A: Income statement provide summary of all revenues and expenses.It provides true profit of the company…

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.