Financial Accounting
3rd Edition
ISBN: 9780078025549
Author: J. David Spiceland, Wayne M Thomas, Don Herrmann
Publisher: McGraw-Hill Education
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Question
Chapter 10, Problem 10.12BE
To determine
To explain: The reason for which Incorporation S did not record a 2-for-1 stock split.
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Students have asked these similar questions
As a stockholder, would you prefer to see your company declare 100% stock dividend or a 2-for-1 stock split. Assume that either position is feasible. Using a hypothetical example, show the effects of stock splits and stock dividends on balance sheets.
A stock split.
Select one:
1. Will have no effect on the par value per share of stock?
2. Will decrease par or stated value
3. will increase the total par value of the stock
4. Will increase total paid in capital
Gonzales Corporation’s common stock (Ordinary Shares) account for 2023 and 2022 showed: (check the attached photo)
Calculate the (A) dividend yield, and (B) dividend payout.
Choose the bullet with correct answer
(A) 2023 – 0.025, 2022 – 0.036, (B) 2023 – 0.23, 2022 – 0.30
(A) 2023 – 0.035, 2022 – 0.046, (B) 2023 – 0.33, 2022 – 0.40
(A) 2023 – 0.045, 2022 – 0.056, (B) 2023 – 0.43, 2022 – 0.50
(A) 2023 – 0.055, 2022 – 0.066, (B) 2023 – 0.53, 2022 – 0.60
(A) 2023 – 0.065, 2022 – 0.076, (B) 2023 – 0.63, 2022 – 0.70
Chapter 10 Solutions
Financial Accounting
Ch. 10 - Corporations typically do not first raise capital...Ch. 10 - What is the difference between a public and a...Ch. 10 - Prob. 3RQCh. 10 - Which form of business organization is most...Ch. 10 - Prob. 5RQCh. 10 - Prob. 6RQCh. 10 - 7.Explain the difference between authorized,...Ch. 10 - Prob. 8RQCh. 10 - Prob. 9RQCh. 10 - What are the three potential features of preferred...
Ch. 10 - Prob. 11RQCh. 10 - Prob. 12RQCh. 10 - How is the accounting for a repurchase of a...Ch. 10 - Prob. 14RQCh. 10 - Prob. 15RQCh. 10 - Prob. 16RQCh. 10 - Prob. 17RQCh. 10 - 18.What happens to the par value, the shares...Ch. 10 - Prob. 19RQCh. 10 - Prob. 20RQCh. 10 - Prob. 21RQCh. 10 - Prob. 22RQCh. 10 - Prob. 23RQCh. 10 - Prob. 10.1BECh. 10 - Prob. 10.2BECh. 10 - Record issuance of common stock (LO102) Western...Ch. 10 - Prob. 10.4BECh. 10 - Prob. 10.5BECh. 10 - Recognize preferred stock features (LO103) Match...Ch. 10 - Prob. 10.7BECh. 10 - Prob. 10.8BECh. 10 - Prob. 10.9BECh. 10 - Record cash dividends (LO105) Divine Apparel has...Ch. 10 - Prob. 10.11BECh. 10 - Prob. 10.12BECh. 10 - Indicate effects on total stockholders equity...Ch. 10 - Prepare the stockholders equity section (LO107)...Ch. 10 - Prob. 10.15BECh. 10 - Prob. 10.1ECh. 10 - Prob. 10.2ECh. 10 - Prob. 10.3ECh. 10 - Prob. 10.4ECh. 10 - Record common stock, preferred stock, and dividend...Ch. 10 - Prob. 10.6ECh. 10 - Prob. 10.7ECh. 10 - Record cash dividends (LO105) On March 15,...Ch. 10 - Prob. 10.9ECh. 10 - Record stock dividends and stock splits (LO106) On...Ch. 10 - Prob. 10.11ECh. 10 - Prob. 10.12ECh. 10 - Indicate effects on total stockholders equity...Ch. 10 - Prob. 10.14ECh. 10 - Prob. 10.15ECh. 10 - Prob. 10.16ECh. 10 - Prob. 10.1APCh. 10 - Prob. 10.2APCh. 10 - Indicate effect of stock dividends and stock...Ch. 10 - Prob. 10.4APCh. 10 - Prob. 10.5APCh. 10 - Prob. 10.6APCh. 10 - Prob. 10.7APCh. 10 - Match terms with their definitions (LO101 to 108)...Ch. 10 - Prob. 10.2BPCh. 10 - Prob. 10.3BPCh. 10 - Prob. 10.4BPCh. 10 - Prob. 10.5BPCh. 10 - Prob. 10.6BPCh. 10 - Prob. 10.7BPCh. 10 - Prob. 10.1APCPCh. 10 - Prob. 10.2APFACh. 10 - Prob. 10.3APFACh. 10 - Prob. 10.4APCACh. 10 - Ethics Put yourself in the shoes of a company...Ch. 10 - Written Communication Preferred stock has...Ch. 10 - Prob. 10.8APEM
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Similar questions
- Which of the following statements is not true about a 3-for-1 stock split?a. Total stockholders’ equity increases.b. A stockholder with 10 shares before the split owns 30 shares after the split.c. Retained Earnings remains the same.d. The market price of each share of stock will decrease.e. Par value is reduced to one-third of what it was before the split.arrow_forwardWhen calculating diluted EPS, which of the following, if dilutive, would cause the weighted average number of shares to increase? Select one: a. Dividends on preferred stock: Yes; Stock options: No b. Dividends on preferred stock: No; Stock options: Yes c. Dividends on preferred stock: Yes; Stock options: Yes d. Dividends on preferred stock: No; Stock options: Noarrow_forwardWhat effect does the issuance of a 2-for-1 stock split have on each of the following? Par Value per Retained Earnings Share Decrease Decrease No effect No effect Increase No effect Decrease No effect 77°F P Type here to searcharrow_forward
- What would be the park value for one share of common stock after 2:1 stock split If the company had a 2:1 stock split on it's common stock would common stock increase decrease or start the same if the company had a2:1 stock split on it's common stock would total owners equity increase decrease or stay the samearrow_forwardOn the basis of this information, calculate as many liquidity, activity, leverage, profitzit and common stock measures as you can. (Note: Assume the current market price of the common stock is $75 per share.arrow_forward7) What account should you debit when you declare a 2: 1 stock split on 100,000 common shares outstanding, par value is $2/share and selling price is $100/sh?arrow_forward
- Please do not give solution in image format ? And Fast Answering Please And Explain Proper Step by Step.arrow_forward17. Analyze the equity section of Gingerbread Corp's balance sheet and determine the following. Be careful to discriminate between a non monetary value and a monetary value. Use a $ sign to indicate a dollar value. 1.Number of shares of common stock that have been issued 2.Number of shares of preferred stock that have been issued 3.BlankDollar value the company paid to repurchase their own stock 4.How many shares of stock are in treasury stock?arrow_forwardStock split versus stock dividend-Firm Mammoth Corporation is considering a 3-for-2 stock split. It currently has the stockholders' equity position shown. The current stock price is $120 per share. The most recent period's earnings available for common stock is included in retained earnings. a. What effect on Mammoth's equity account would result from the stock split? b. What change in stock price would you expect to result from the stock split? Preferred stock Common stock (100,000 shares at $4 par) Paid-in capital in excess of par Retained earnings Total stockholders' equity $ 1,000,000 400,000 1,700,000 10,000,000 $13,100,000 c. What is the maximum cash dividend per share that the firm could pay on common stock before and after the stock split? (Assume that legal capital includes all paid-in capital.) d. Contrast your answers to parts a through c. with the circumstances surrounding a 50% stock dividend. a. If the firm declares a 3-for-2 stock split, the new balance in the common…arrow_forward
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