Explanation Stock dividends: Stock dividends are the number of shares issued by a company to the existing shareholders in a proportion equal to the number of shares owned by each shareholder, based on a stock dividend percentage. Large stock dividend: When the corporation offers stock dividend more than 25% of its total number of outstanding shares, it is known as a large stock dividend. Difference between the accounting treatment for small stock dividend and the large stock dividend as follows: The main difference between large and small dividends is the paid-in capital excess of par value account. When small stock dividend is declared, paid-in capital excess of par value account would be created, because small stock dividends are recorded at the market value of per share, but in the case of large stock dividend, stock dividends are issued at the par or at stated value of shares, and the amount of large stock dividend is directly added to the issued and outstanding shares of common stock. Prepare the journal entry to record the dividend declaration as follows: Date Account Titles Debit ($) Credit ($) March 2 Retained earnings 120,000 Common stock dividend distributable 120,000 (To record the declaration of 40% common stock dividend) Table (1) Stock dividend is a component of stockholder’s equity account. While issuing stock dividend retained earnings will decrease. Thus, debit retained earnings account to decrease the retained earnings balance...

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ISBN: 9781260158625

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Chapter 13 Solutions

Principles of Financial Accounting.

Ch. 13 - A corporation issues 6,000 shares of 5 par value...Ch. 13 - A company reports net income of 75,000. Its...Ch. 13 - A company has 5,000 shares of 100 par preferred...Ch. 13 - A company paid cash dividends of 0.81 per share....Ch. 13 - Prob. 5MCQ Ch. 13 - What are organization expenses? Provide examples.Ch. 13 - How are organization expenses reported?Ch. 13 - Prob. 3DQ Ch. 13 - What is the difference between authorized shares...Ch. 13 - Prob. 5DQ

Ch. 13 - List the general rights of common stockholders.Ch. 13 - What is the difference between the market value...Ch. 13 - Identify and explain the importance of the three...Ch. 13 - Prob. 9DQ Ch. 13 - How does declaring a stock dividend affect the...Ch. 13 - What is the difference between a stock dividend...Ch. 13 - Prob. 12DQ Ch. 13 - Prob. 13DQ Ch. 13 - How is book value per share computed for a...Ch. 13 - Prob. 15DQ Ch. 13 - Prob. 16DQ Ch. 13 - Prob. 17DQ Ch. 13 - Prob. 1QS Ch. 13 - Issuance of common stock Prepare the journal entry...Ch. 13 - Issuance of par and stated value common stock...Ch. 13 - Issuance of no-par common stock Prepare the...Ch. 13 - Prob. 5QS Ch. 13 - Accounting for cash dividends Prepare journal...Ch. 13 - Prob. 7QS Ch. 13 - Accounting for small stock dividend The...Ch. 13 - Prob. 9QS Ch. 13 - Accounting for dividends For each of the following...Ch. 13 - Preferred stock issuance and dividends 1. Prepare...Ch. 13 - Dividend allocation between classes of...Ch. 13 - Prob. 13QS Ch. 13 - Prob. 14QS Ch. 13 - Purchase and sale of treasury stock On May 3,...Ch. 13 - Prob. 16QS Ch. 13 - Prob. 17QS Ch. 13 - For each situation, identify whether it is treated...Ch. 13 - Prob. 19QS Ch. 13 - Basic earnings per share Murray Company reports...Ch. 13 - Epic Company earned net income of 900,000 this...Ch. 13 - Price-earnings ratio Compute Topp Companys...Ch. 13 - Prob. 23QS Ch. 13 - Book value per common share The stockholders...Ch. 13 - Prob. 1E Ch. 13 - Prob. 2E Ch. 13 - Accounting for par, stated, and no-par stock...Ch. 13 - Recording stock issuances Prepare journal entries...Ch. 13 - Stock issuance for noncash assets Sudoku Company...Ch. 13 - On June 30, Sharper Corporations stockholders...Ch. 13 - Prob. 7E Ch. 13 - The stockholders equity section of TVX Company on...Ch. 13 - Prob. 9E Ch. 13 - Yorks outstanding stock consists of 80,000 shares...Ch. 13 - Prob. 11E Ch. 13 - Prob. 12E Ch. 13 - In Draco Corporations first year of business, the...Ch. 13 - Prob. 14E Ch. 13 - Prob. 15E Ch. 13 - Prob. 16E Ch. 13 - Prob. 17E Ch. 13 - Price-earnings ratio computation and...Ch. 13 - Prob. 19E Ch. 13 - The equity section of Cyril Corporations balance...Ch. 13 - Prob. 21E Ch. 13 - Stockholders equity transactions and analysis...Ch. 13 - Prob. 2AP Ch. 13 - Prob. 3AP Ch. 13 - The equity sections for Atticus Group at the...Ch. 13 - Prob. 5AP Ch. 13 - Stockholders equity transactions and analysis...Ch. 13 - Balthus Corp. reports the following components of...Ch. 13 - Prob. 3BP Ch. 13 - Prob. 4BP Ch. 13 - Prob. 5BP Ch. 13 - Santana Rey created Business Solutions on October...Ch. 13 - Prob. 1AA Ch. 13 - Use the following comparative figures for Apple...Ch. 13 - Prob. 3AA Ch. 13 - Prob. 1BTN Ch. 13 - Access the March 1, 2017, fi ling of the 2016...Ch. 13 - Prob. 5BTN

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