Universal Cable Corporation has 1,000,000 shares of $1 par value capital stock outstanding on January 1. The following equity transactions occurred during the current year: April 30 June 1 July 1 August 1 September 1 December 15 Distributed additional shares of capital stock in a 2-for-1 stock split. Market price of the stock was $35 per share. Declared a cash dividend of 60 cents per share Paid the 60-cent cash dividend to stockholders. Declared a 5% stock dividend. Market price of stock was $19 per share. Issued shares resulting from the 5% stock dividend declared on August 1. Declared a 50% stock dividend. Market price of stock was $23 per share. Prepare journal entries to record the above transactions. Compute the number of shares of capital stock outstanding at year-end. What is the par value per share of Universal Cable stock at the end of the year? Determine the effect of each of the following on total stockholders’ equity: stock split, declaration and payment of a cash dividend, declaration and distribution of a stock dividend. (Your answer should be increase, decrease or no effect.)
Universal Cable Corporation has 1,000,000 shares of $1 par value capital stock outstanding on January 1. The following equity transactions occurred during the current year: April 30 June 1 July 1 August 1 September 1 December 15 Distributed additional shares of capital stock in a 2-for-1 stock split. Market price of the stock was $35 per share. Declared a cash dividend of 60 cents per share Paid the 60-cent cash dividend to stockholders. Declared a 5% stock dividend. Market price of stock was $19 per share. Issued shares resulting from the 5% stock dividend declared on August 1. Declared a 50% stock dividend. Market price of stock was $23 per share. Prepare journal entries to record the above transactions. Compute the number of shares of capital stock outstanding at year-end. What is the par value per share of Universal Cable stock at the end of the year? Determine the effect of each of the following on total stockholders’ equity: stock split, declaration and payment of a cash dividend, declaration and distribution of a stock dividend. (Your answer should be increase, decrease or no effect.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Universal Cable Corporation has 1,000,000 shares of $1 par value capital stock outstanding on January 1. The following equity transactions occurred during the current year:
|
April 30
June 1 July 1 August 1 September 1 December 15 |
Distributed additional shares of capital stock in a 2-for-1 stock split. Market price of the stock was $35 per share. Declared a cash dividend of 60 cents per share Paid the 60-cent cash dividend to stockholders. Declared a 5% stock dividend. Market price of stock was $19 per share. Issued shares resulting from the 5% stock dividend declared on August 1. Declared a 50% stock dividend. Market price of stock was $23 per share. |
- Prepare
journal entries to record the above transactions. - Compute the number of shares of capital stock outstanding at year-end.
- What is the par value per share of Universal Cable stock at the end of the year?
- Determine the effect of each of the following on total
stockholders’ equity: stock split, declaration and payment of a cash dividend, declaration and distribution of a stock dividend. (Your answer should be increase, decrease or no effect.)
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