Which of the following show the proper effect of a stock split and a stock dividend?Stock DividendItemTotal paid-in capitalItemPar value per shareItemTotal retained earningsItemTotal par value (common)Stock SplitIncreaseStock SplitDecreaseStock SplitDecreaseStock SplitDecreaseIncreaseStock DividendNo changeStock DividendDecreaseStock DividendIncrease

A stock dividend is a distribution of additional shares of a company's stock to existing…

Answered: Which of the following show the proper…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Effect of Stock Split a. What will be the number of shares outstanding after the split? shares b. If the common stock had a market price of $95 per share before the stock s plit, what would be an approximate market price per share after the split? per share
Prepare a journal entry that summarizes the declaration and distribution of the stock split if it is not to be effected in the form of a stock dividend. What is the par per share after the split?
Which statement is false? - stock dividend increases the amount of paid in capital -Stock splits cause no change in the amount of the stockholder's equity - stock splits increase the number of shares -stock dividend increases total stockholders equity
At what percentage point can the issuance of additional shares still qualify as a stock dividend, as opposed to a stock split?
How are dividends per share for common stock used in the calculation of the following? O A. O B. O c. OD. Dividends per share payout ratio Numerator Numerator Denominator Denominator Earnings per share Numerator Not used Not used Denominator
If a company’s outstanding shares are increased through a stock dividend or a stock split, how would that alter the presentation of its EPS data?
Which of the following transactions will increase thereturn on equity?a. Declare and issue a stock dividend.b. Split the stock 2-for-1.c. Repurchase the company’s stock.d. None of the above.
Flexsteel is giving out a large stock dividend. This would: A. Results in a transfer of retained earnings to the common stock account B. Reduces the par value per share by the percentage of the additional shares issued. C. Is accounted for in exactly the same manner as a stock split D. Results in a transfer of retained earnings to common stock and additional paid in capital
The journal entry to record a stock split effected in the form of dividends may include which of the following? (Select all that apply.) Multiple select question. credit to common stock debit to common stock credit to paid-in-capital debit to retained earnings debit to paid-in-capita
What is most likely to happen to the earnings per share and market price of a certain stock when a firm issues stock dividends?

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