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. Small stock dividend: If the stock dividend is declared less than 20% to 25% of the issued and outstanding stock by the corporation, it is called as a small stock dividend. To journalize: the declaration of stock dividend on August 15.

Question

Harald Dunn and his wife Evadne operate a successful snack packaging business, Healthy Snacks, in St Mary, Jamaica. The bulk buying of the raw materials (nuts, dried fruits, etc), the packaging and delivery to corporate area shops are done by the members of the family. The accounts for Mr. Dunn’s business at 31st December 2014 showed a profit of $4,500,000 after charging: $180,000 depreciation of equipment and office furniture; $750,000 for salary to his wife Evadne who supervises the office, $496,000 to his 18 year old son Shane, and $1,720,000 to himself. $78,000 interest on a loan he had obtained to expand his business 3 years ago (a) Prepare the statement; with notes where applicable; of the Healthy Snacks business showing the taxable profits and income tax liability for the year of assessment 2014 for Harold Dunn. (b) Shane is a part-time student at the University of the West Indies. What is his tax liability, if any

Answer 1

Question

Chapter 13, Problem 13.9SE

1.

To determine

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.

Small stock dividend: If the stock dividend is declared less than 20% to 25% of the issued and outstanding stock by the corporation, it is called as a small stock dividend.

To journalize: the declaration of stock dividend on August 15.

2.

To determine

To explain: the overall effect of the stock dividend on Company C’s total assets.

3.

To determine

To explain: the overall effect of the stock dividend on Company C’s total stockholders’ equity.

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Harald Dunn and his wife Evadne operate a successful snack packaging business, Healthy Snacks, in St Mary, Jamaica. The bulk buying of the raw materials (nuts, dried fruits, etc), the packaging and delivery to corporate area shops are done by the members of the family. The accounts for Mr. Dunn’s business at 31st December 2014 showed a profit of $4,500,000 after charging: $180,000 depreciation of equipment and office furniture; $750,000 for salary to his wife Evadne who supervises the office, $496,000 to his 18 year old son Shane, and $1,720,000 to himself. $78,000 interest on a loan he had obtained to expand his business 3 years ago (a) Prepare the statement; with notes where applicable; of the Healthy Snacks business showing the taxable profits and income tax liability for the year of assessment 2014 for Harold Dunn. (b) Shane is a part-time student at the University of the West Indies. What is his tax liability, if any

Branch Company, a building materials supplier, has $17,400,000 of notes payable due April 12, 2025. At December 31, 2024, Branch signed an agreement with First Bank to borrow up to $17,400,000 to refinance the notes on a long-term basis. The agreement specified that borrowings would not exceed 80% of the value of the collateral that Branch provided. At the date of issue of the December 31, 2024, financial statements, the value of Branch's collateral was $19,800,000. On its December 31, 2024, balance sheet, Branch should classify the notes as follows:

Can you help me with financial accounting question ?

Answer 2

Question

Chapter 13, Problem 13.9SE

1.

To determine

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.

Small stock dividend: If the stock dividend is declared less than 20% to 25% of the issued and outstanding stock by the corporation, it is called as a small stock dividend.

To journalize: the declaration of stock dividend on August 15.

2.

To determine

To explain: the overall effect of the stock dividend on Company C’s total assets.

3.

To determine

To explain: the overall effect of the stock dividend on Company C’s total stockholders’ equity.

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Answer 3

Question

Chapter 13, Problem 13.9SE

1.

To determine

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.

Small stock dividend: If the stock dividend is declared less than 20% to 25% of the issued and outstanding stock by the corporation, it is called as a small stock dividend.

To journalize: the declaration of stock dividend on August 15.

2.

To determine

To explain: the overall effect of the stock dividend on Company C’s total assets.

3.

To determine

To explain: the overall effect of the stock dividend on Company C’s total stockholders’ equity.

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Answer 4

Question

Chapter 13, Problem 13.9SE

1.

To determine

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.

Small stock dividend: If the stock dividend is declared less than 20% to 25% of the issued and outstanding stock by the corporation, it is called as a small stock dividend.

To journalize: the declaration of stock dividend on August 15.

2.

To determine

To explain: the overall effect of the stock dividend on Company C’s total assets.

3.

To determine

To explain: the overall effect of the stock dividend on Company C’s total stockholders’ equity.

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Answer 5

Chapter 13, Problem 13.9SE

1.

To determine

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.

Small stock dividend: If the stock dividend is declared less than 20% to 25% of the issued and outstanding stock by the corporation, it is called as a small stock dividend.

To journalize: the declaration of stock dividend on August 15.

2.

To determine

To explain: the overall effect of the stock dividend on Company C’s total assets.

3.

To determine

To explain: the overall effect of the stock dividend on Company C’s total stockholders’ equity.

Answer 6

Chapter 13, Problem 13.9SE

1.

To determine

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.

Small stock dividend: If the stock dividend is declared less than 20% to 25% of the issued and outstanding stock by the corporation, it is called as a small stock dividend.

To journalize: the declaration of stock dividend on August 15.

Answer 7

Chapter 13, Problem 13.9SE

1.

To determine

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.

Small stock dividend: If the stock dividend is declared less than 20% to 25% of the issued and outstanding stock by the corporation, it is called as a small stock dividend.

To journalize: the declaration of stock dividend on August 15.

Answer 8

2.

To determine

To explain: the overall effect of the stock dividend on Company C’s total assets.

Answer 9

2.

To determine

To explain: the overall effect of the stock dividend on Company C’s total assets.

Answer 10

3.

To determine

To explain: the overall effect of the stock dividend on Company C’s total stockholders’ equity.

Answer 11

3.

To determine

To explain: the overall effect of the stock dividend on Company C’s total stockholders’ equity.

Answer 12

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Answer 13

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Answer 23

Ch. 13 - Prob. 1QC Ch. 13 - Prob. 2QC Ch. 13 - Suppose Value Home and Garden Imports issued...Ch. 13 - Prob. 4QC Ch. 13 - Prob. 5QC Ch. 13 - Assume that a company paid 6 per share to purchase...Ch. 13 - Prob. 7QC Ch. 13 - A small stock dividend a. decreases common stock....Ch. 13 - Prob. 9QC Ch. 13 - Jackson Health Foods has 8,000 shares of 2 par...

To explain: the overall effect of the stock dividend on Company C’s total assets.

To explain: the overall effect of the stock dividend on Company C’s total stockholders’ equity.

Chapter 13 Solutions