Question

(Cash dividends) Marshall Pottery Barn is a privately owned importer of Mexican pottery and garden supplies. The firm plans on paying a $1.45 per share dividend on each of its 5,300 shares of common stock. The firm's most recent balance sheet just before payment of the dividend looks like the following: a. What would happen to the firm's balance sheet after payment of the cash dividend? b. If the above balance sheet also represented market values (as well as book values), how would it change following the payment of the cash dividend? a. What would happen to the firm's balance sheet after payment of the cash dividend? The accounting entry would be: (Select from the drop-down menus and round to the nearest dollar.) Equity 7.685 Cash $ 7,685 b. If the above balance sheet also represented market values (as well as book values), how would it change following the payment of the cash dividend? Complete the new balance sheet for Marshall Pottery Barn: (Round to the nearest dollar.) Cash Accounts payable 0 Data Table 22600 5400 Accounts receivable 21800 Notes payable 30600 Inventories Current assets 28000 33700 Cash Current liabilities Long-term debt Equity 17,200 Accounts payable Notes payable 22,600 5,400 Accounts receivable Fixed assets 21,800 30,600 Total assets Total Inventories Current assets Current liabilities Long-term debt 69,600 129,300 28,000 33,700 137,200 Fixed assets Equity Enter any number in the edit fields and then click Check Answer. 198,900 198,900 Total assets Total All parts showing

Answer 1

a. Credit General Journal Equity Debit $7.685 Cash $7,685 Note: ($1.45 per share * 5,300 shares) $7.685 Assets Current Assets Cash Accounts receivable Inventories Total current assets Fixed Assets Total Assets Marshall Pottery Barn Balance sheet Liabilities Current liabilities $9,515 Accounts Payable $21,800 Note Payable $30,600 Total current liabilities $61,915 Long-term debt $129,300 Equity $191,215 Total Liabilities and Equity $22,600 $5,400 $28,000 $33,700 $129,515 $191,215