Chapter 13, Problem 13.42AP

1.

To determine

Cash dividends: The amount of cash provided by a corporation out of its distributable profits to its shareholders as a return for the amount invested by them is referred as cash dividends.

Stock Dividends: It refers to the payment of dividends by a company to its existing shareholders, in the form of additional shares rather than cash. Stock dividends are paid, when there is an inadequate cash available in the company.

Treasury Stock: It refers to the shares that are reacquired by the corporation that are already issued to the stockholders.

To record: the dividends and treasury stock transactions for Company D.

2.

To determine

To Prepare: the stockholders’ equity section of Company D’s balance sheet at December 31, 2018.