
1.
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.
To journalize: the distribution of stock dividend on August 31.
2.
To explain: the overall effect of the stock dividend on Company G’s total assets.
3.
To explain: the overall effect of the stock dividend on Company G’s total stockholders’ equity.

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Chapter 13 Solutions
Horngren's Financial & Managerial Accounting, The Managerial Chapters, Student Value Edition (5th Edition)
- A company reported total equity of $200,000 on its December 31, 2020, balance sheet. The following information is available for the year ended December 31, 2021: ⚫2021 Revenues: $280,000 • 2021 Expenses: $220,000 Liabilities at December 31, 2021: $120,000 What are the total assets of the company at December 31, 2021?arrow_forwardProvide Answerarrow_forwardNeed answerarrow_forward
- Example: Topic/Subtopic Research and development costs for software 985 Cash and cash equivalents Deferred revenue Fair value measurement Earnings per share Consolidation for real estate investment trusts Accounting Standards Codification Numberarrow_forwardpercentage increasearrow_forwardSwift Enterprises has sales of $500,000, variable costs are 70% of sales, and operating income is $75,000. What is the operating leverage? a. 0 b. 1.5 c. 2.33 d. 2arrow_forward
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