SURVEY OF ACCOUNTING(LL)>CUSTOM PKG.<
5th Edition
ISBN: 9781264010653
Author: Edmonds
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 8, Problem 16E
a.
To determine
Provide the entry that will be made on the books of the Corporation for the stock split.
b.
To determine
Identify the number of common shares outstanding and the par value after the stock split.
c.
To determine
Explain the manner by which the stock will be affected by the stock split.
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Exercise 11-16A (Algo) Determining the effects of stock splits on the accounting records LO 11-7
The market value of Yeates Corporation's common stock had become excessively high. The stock was currently selling for $260 per
share. To reduce the market price of the common stock, Yeates declared a 4-for-1 stock split for the 230,000 outstanding shares of its
$10 par value common stock.
Required:
b. Determine the number of common shares outstanding and the par value after the split.
Note: Round par value answer to 2 decimal places.
Number of common shares outstanding
Par value per share after the split
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Exercise 11-15A (Algo) Accounting for stock dividends LO 11-7
Beacon Corporation issued a 4 percent stock dividend on 26,500 shares of its $8 par common stock. At the time of the dividend, the
market value of the stock was $24 per share.
Required:
a. Compute the amount of the stock dividend.
b. Show the effects of the stock dividend on the financial statements using a horizontal statements model.
Complete this question by entering your answers in the tabs below.
Required A Required B
Compute the amount of the stock dividend.
Stock dividend
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Chapter 8 Solutions
SURVEY OF ACCOUNTING(LL)>CUSTOM PKG.<
Ch. 8 - Prob. 1QCh. 8 - Prob. 2QCh. 8 - Prob. 3QCh. 8 - Prob. 4QCh. 8 - 5. What is the purpose of the articles of...Ch. 8 - 6. What is the function of the stock certificate?Ch. 8 - Prob. 7QCh. 8 - Prob. 8QCh. 8 - 9. What is a limited liability company? Discuss...Ch. 8 - Prob. 10Q
Ch. 8 - 11. What is the difference between contributed...Ch. 8 - Prob. 12QCh. 8 - Prob. 13QCh. 8 - 14. What is the meaning of each of the following...Ch. 8 - 15. What is the difference between cumulative...Ch. 8 - 16. What is no-par stock? How is it recorded in...Ch. 8 - 17. Assume that Best Co. has issued and...Ch. 8 - 18. If Best Co. issued 10,000 shares of 20 par...Ch. 8 - 19. What is the difference between par value stock...Ch. 8 - 20. Why might a company repurchase its own stock?Ch. 8 - 21. What effect does the purchase of treasury...Ch. 8 - 22. Assume that Day Company repurchased 1,000 of...Ch. 8 - 23. What is the importance of the declaration...Ch. 8 - 24. What is the difference between a stock...Ch. 8 - 25. Why would a company choose to distribute a...Ch. 8 - 26. What is the primary reason that a company...Ch. 8 - 27. If Best Co. had 10,000 shares of 20 par value...Ch. 8 - 28. When a company appropriates retained earnings,...Ch. 8 - Prob. 29QCh. 8 - Prob. 30QCh. 8 - Prob. 31QCh. 8 - 32. What are some reasons that a corporation might...Ch. 8 - Prob. 1ECh. 8 - Exercise 8-2 Effect of accounting events on the...Ch. 8 - Prob. 3ECh. 8 - Prob. 4ECh. 8 - Exercise 8-5 Characteristics of capital stock The...Ch. 8 - Exercise 8-6 Effect of issuing common stock on the...Ch. 8 - Exercise 8-7 Recording and reporting common and...Ch. 8 - Prob. 8ECh. 8 - Prob. 9ECh. 8 - Prob. 10ECh. 8 - Prob. 11ECh. 8 - Prob. 12ECh. 8 - Exercise 8-13 Recording and reporting treasury...Ch. 8 - Prob. 14ECh. 8 - Prob. 15ECh. 8 - Prob. 16ECh. 8 - Prob. 17ECh. 8 - Prob. 18ECh. 8 - Prob. 19PCh. 8 - Problem 8-20 Effect of business structure on...Ch. 8 - Prob. 21PCh. 8 - Prob. 22PCh. 8 - Problem 8-23 Recording and reporting stock...Ch. 8 - Prob. 24PCh. 8 - Prob. 25PCh. 8 - Problem 8-26 Treasury stock transactions and...Ch. 8 - Prob. 27PCh. 8 - Prob. 28PCh. 8 - Prob. 1ATCCh. 8 - ATC 8-3 Research Assignment Analyzing Skecherss...Ch. 8 - Prob. 4ATCCh. 8 - ATC 11-7 Ethical Dilemma Bad news versus very bad...
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- 4arrow_forwardchapter 12 question 3arrow_forward23 Skipped A company received dividends of $0.50 per share on 1,000 shares of common stock it holds. It is presumed that this equity investment has insignificant influence. The journal entry to record this dividend receipt would consist of a debit to Cash for $500 and credit to Dividend Revenue for $500. True or False True Falsearrow_forward
- 5 ok t Exercise 11-12A (Algo) Treasury stock transactions LO 11-5 Elroy Corporation repurchased 3,400 shares of its own stock for $35 per share. The stock has a par of $15 per share. A month later, Elroy resold 850 shares of the treasury stock for $43 per share. Required What is the balance of the Treasury Stock account after these transactions? Balance of treasury stock Nextarrow_forwardQuestion 8 Not yet answered a. A company whose share is selling for $28.68 announces a stock split of 8-for- 3. The company has 21, 990 shares on issue. How many more shares will be on the issue when the stock split is complete (please round to the nearest whole share): b. What will be the price after the split Please round your answer to two decimal places (if necessary), and don't insert a comma (,) or dollar sign in your answer.arrow_forwardI need help with thisarrow_forward
- chapter 12 question 4arrow_forward11arrow_forwardRequired information 7 The par amount of the shares becomes $1 per share. 7 No journal entry is recorded. Knowledge Check 02 Craft declares and distributes a 2-for-1 stock split in the form of a 100% stock dividend and distributes 1,000 shares when the market value of the $1 par common stock is $12 per share. The company chooses not to reclassify earned capital as invested capital with regards to this transaction. Prepare the appropriate journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transactlon llst View Journal entry worksheet No Event General Joumal Debit Credit 100 1 01 Paid-in capital excess of par 100 Common stock Prev 18 of 23 Next > Question no....pages -pdf Question no....pagesarrow_forward
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