Chapter 8, Problem 8.32P

To determine

(A)

Concept Introduction:

Issue price is the price at which new shares are offered to retail investors for sale on the listing day.

Net Income is referred as the excess of revenue or gains earned over the expenses or losses by the firm during the fiscal year.

Stock Dividend is a dividend payment in the form of additional shares of common stock to existing shareholders in proportion to the number of shares, the investor currently holds.

Stock Split is the process of division of existing share into multiple shares by which existing par value of each share is reduced proportionately.

Amount of common stock as on May 31, 2016

To determine

(B)

Concept Introduction:

Issue price is the price at which new shares are offered to retail investors for sale on the listing day.

Net Income is referred as the excess of revenue or gains earned over the expenses or losses by the firm during the fiscal year.

Stock Dividend is a dividend payment in the form of additional shares of common stock to existing shareholders in proportion to the number of shares, the investor currently holds.

Stock Split is the process of division of existing share into multiple shares by which existing par value of each share is reduced proportionately.

The selling price of share at which additional capital is sold in the month of May.

To determine

(C)

Concept Introduction:

Issue price is the price at which new shares are offered to retail investors for sale on the listing day.

Net Income is referred as the excess of revenue or gains earned over the expenses or losses by the firm during the fiscal year.

Stock Dividend is a dividend payment in the form of additional shares of common stock to existing shareholders in proportion to the number of shares, the investor currently holds.

Stock Split is the process of division of existing share into multiple shares by which existing par value of each share is reduced proportionately.

The average cost per share of the common stock purchased for the treasury during May.

To determine

(D)

Concept Introduction:

Issue price is the price at which new shares are offered to retail investors for sale on the listing day.

Net Income is referred as the excess of revenue or gains earned over the expenses or losses by the firm during the fiscal year.

Stock Dividend is a dividend payment in the form of additional shares of common stock to existing shareholders in proportion to the number of shares, the investor currently holds.

Stock Split is the process of division of existing share into multiple shares by which existing par value of each share is reduced proportionately.

The Net Income for the month of May.

To determine

(E)

Concept Introduction:

Issue price is the price at which new shares are offered to retail investors for sale on the listing day.

Net Income is referred as the excess of revenue or gains earned over the expenses or losses by the firm during the fiscal year.

Stock Dividend is a dividend payment in the form of additional shares of common stock to existing shareholders in proportion to the number of shares, the investor currently holds.

Stock Split is the process of division of existing share into multiple shares by which existing par value of each share is reduced proportionately.

Requirement 1:

The total amount of cash dividend payable on July 15, 2016.

To determine

(F)

Concept Introduction:

Issue price is the price at which new shares are offered to retail investors for sale on the listing day.

Net Income is referred as the excess of revenue or gains earned over the expenses or losses by the firm during the fiscal year.

Stock Dividend is a dividend payment in the form of additional shares of common stock to existing shareholders in proportion to the number of shares, the investor currently holds.

Stock Split is the process of division of existing share into multiple shares by which existing par value of each share is reduced proportionately.

The issuance of stock dividend on the issued shares of common stock using horizontal model or by writing journal entry.

To determine

G

Concept Introduction:

Issue price is the price at which new shares are offered to retail investors for sale on the listing day.

Net Income is referred as the excess of revenue or gains earned over the expenses or losses by the firm during the fiscal year.

Stock Dividend is a dividend payment in the form of additional shares of common stock to existing shareholders in proportion to the number of shares, the investor currently holds.

Stock Split is the process of division of existing share into multiple shares by which existing par value of each share is reduced proportionately.

Requirement 1:

The par value of each share after 2-for-1 stock split on June 1, 2016. Also, The number of authorized shares of common stock after the split.

To determine

(F)

Concept Introduction:

Issue price is the price at which new shares are offered to retail investors for sale on the listing day.

Net Income is referred as the excess of revenue or gains earned over the expenses or losses by the firm during the fiscal year.

Stock Dividend is a dividend payment in the form of additional shares of common stock to existing shareholders in proportion to the number of shares, the investor currently holds.

Stock Split is the process of division of existing share into multiple shares by which existing par value of each share is reduced proportionately.

Requirement 1:

The effect of declaration of stock dividend on total stockholders equity.