Stock Dividends: It refers to the payment of the dividend to its shareholders by the corporation in the form of shares rather than cash is referred as stock dividend. Stock Splits: It is a method of increasing the total number of outstanding shares thereby, reducing the market price of each share, however, keeping the corporation’s total market value constant. Treasury Stock : It refers to the shares that are reacquired by the corporation that are already issued to the stockholders. the effect of stock dividend on total stockholders’ equity .
Stock Dividends: It refers to the payment of the dividend to its shareholders by the corporation in the form of shares rather than cash is referred as stock dividend. Stock Splits: It is a method of increasing the total number of outstanding shares thereby, reducing the market price of each share, however, keeping the corporation’s total market value constant. Treasury Stock : It refers to the shares that are reacquired by the corporation that are already issued to the stockholders. the effect of stock dividend on total stockholders’ equity .
Solution Summary: The author explains the effects of stock dividend on total stockholders' equity. It decreases retained earnings by 560,000 and increases paid-in capital by 504,000.
Definition Definition Assets available to stockholders after a company's liabilities are paid off. Stockholders’ equity is also sometimes referred to as owner's equity. A stockholders’ equity or book value generally includes common stock, preferred stock, and retained earnings and is an indicator of a company's financial strength.
Chapter 13, Problem 13.31E
a)
To determine
Stock Dividends: It refers to the payment of the dividend to its shareholders by the corporation in the form of shares rather than cash is referred as stock dividend.
Stock Splits: It is a method of increasing the total number of outstanding shares thereby, reducing the market price of each share, however, keeping the corporation’s total market value constant.
Treasury Stock: It refers to the shares that are reacquired by the corporation that are already issued to the stockholders.
the effect of stock dividend on total stockholders’ equity.
b)
To determine
the effect of stock dividend on total stockholders’ equity.
c)
To determine
the effect of treasury stock on total stockholders’ equity.
d)
To determine
the effect of treasury stock on total stockholders’ equity.