Homework Answers
Correct answer---(B) Has no effect on total equity.
The increase in common stock due to stock issue is the same as decrease in retained earnings so overall balance in shareholder’s equity remains the same. There is no cash outflow in stock dividend unlike cash dividend where cash is paid for cash dividend declared which decreases retained earnings but do not increase common stock.
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This Questlion: 4 pts A small stock dividend ○ A. decreases common stock. O B. has...
Which of the following is true of dividends? O A. Dividends increase assets and decrease total...
Which of the following is true of dividends? O A. Dividends increase assets and decrease total stockholders' equity of a corporation. O B. Dividend payments increase stockholders' equity O C. Dividend payments decrease paid-in capital O D. Dividends are a distribution of cash, stock, or other property to stockholders Click to select your answer 28 MacE esc 名。 FI F2 F3 F4 F5 3
4. Glaser Company paid $36,000 to buy 3,000 shares of its $5 par value common stock...
4. Glaser Company paid $36,000 to buy 3,000 shares of its $5 par value common stock for the treasury. The stock was originally sold for $27,000. The entry to record the purchase includes a a. debit to Treasury Stock for $27,000. b. credit to Treasury Stock for $15,000. c. debit to Treasury Stock for $36,000. d. credit to Common Stock for $27,000. 5. The purchase of treasury stock a. increases total assets and decreases total stockholders' equity. b. decreases total...
Stock dividend versus stock split Firm The board of Wicker Home Health Care, Inc., is exploring...
Stock dividend versus stock split Firm The board of Wicker Home Health Care, Inc., is exploring ways to expand the number of shares outstanding in an effort to reduce the market price per share to a level that the firm considers more appealing to investors. The options under consideration are a 20% stock dividend and, alternatively, a 5-for-4 stock split. At the present time, the firm's equity account and other per-share information are given as follows: a. Show the effect...
Complete the following chart by inserting an "X" for each statement that is true. Cash dividend...
Complete the following chart by inserting an "X" for each statement that is true. Cash dividend Stock dividend Stock split Decreases retained earnings Has no effect on a liability Increases paid-in capital by the same amount that it decreases retained earnings Decreases both total assets and total stockholders' equity Has no effect on total stockholders' equity
QS 13-7 Accounting for small stock dividend LO P2 The stockholders' equity section of Jun Company's...
QS 13-7 Accounting for small stock dividend LO P2 The stockholders' equity section of Jun Company's balance sheet as of April 1 follows. On April 2, Jun declares and distributes a 10% stock dividend. The stock's per share market value on April 2 is $15 (prior to the dividend). pints Common stock-$5 par value, 395,000 shares authorized, 210,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings $ 1,050,000 510,000 843,000 $ 2,403,000 Total...
Stock dividend: Firm Columbia Paper has the following stockholders equity account. The firm's common stock has...
Stock dividend: Firm Columbia Paper has the following stockholders equity account. The firm's common stock has a current market price of $30 per share. P14-9 $100,000 $20,000 $280,000 $100,000 $500,000 Preferred stock Common stock (10,000 shares at $2 par) Paid-in capital in excess of par Retained earnings Total stockholders' equity a. Show the effects on Columbia of a 5% stock dividend. b. Show the effects of (1) a 10% and (2) a 20% stock dividend. c. In light of your...
The company with the common equity accounts shown here has declared a 10 percent stock dividend...
The company with the common equity accounts shown here has declared a 10 percent stock dividend when the market value of its stock is $36 per share. Common stock ($1 par value) Capital surplus $430,000 855,000 3,810,800 Retained earnings 5,095,800 $ Total owners' equity What would be the number of shares outstanding, after the distribution of the stock dividend? (Do not round intermediate calculations.) New shares outstanding What would the equity accounts be after the stock dividend? (Do not round...
Entries for Stock Dividend Healthy Life Co. is an HMO for businesses in the Fresno area....
Entries for Stock Dividend Healthy Life Co. is an HMO for businesses in the Fresno area. The following account balances appear on Healthy Life's balance sheet: Common stock (260,000 shares authorized ; 7,000 shares issued), $100 par, $700,000; Paid-In Capital in excess of par-common stock, $70,000, and Retared earnings, $5,600,000. The board of drectors dedared a 1% stock dvo when the market price of the stock was $139 a share. Healthy Life reported no income or loss for the current...
Stock dividend-Firm Columbia Paper has the following stockholders equity account The firm's common stock has a...
Stock dividend-Firm Columbia Paper has the following stockholders equity account The firm's common stock has a current market price of $33 per share. Preferred stock Common stock (10.000 shares at $3 par) Paid-in capital in excess of par Retained eanings $110.000 30.000 300 000 100.000 $540.000 Total stockholders equity a. Show the effects on Columbia of a 5% stock dividend. b. In light of your answers to part a, discuss the effects of stock dividend on stockholders equity (Round to...
Adler Company declared a cash dividend of $1.00 per share on 20,000 shares of common stock...
Adler Company declared a cash dividend of $1.00 per share on 20,000 shares of common stock on January 15. The dividend is to be paid one month later on February 15 to stockholders of record on January 31. Which of the following summarizes the effects of the journal entry recorded on the date of record on January 31? It decreases stockholders' equity and decreases assets. It decreases liabilities and decreases assets. It decreases stockholders' equity and increases liabilities. O No...
Which of the following is true of dividends? O A. Dividends increase assets and decrease total stockholders' equity of a corporation. O B. Dividend payments increase stockholders' equity O C. Dividend payments decrease paid-in capital O D. Dividends are a distribution of cash, stock, or other property to stockholders Click to select your answer 28 MacE esc 名。 FI F2 F3 F4 F5 3
Stock dividend versus stock split Firm The board of Wicker Home Health Care, Inc., is exploring ways to expand the number of shares outstanding in an effort to reduce the market price per share to a level that the firm considers more appealing to investors. The options under consideration are a 20% stock dividend and, alternatively, a 5-for-4 stock split. At the present time, the firm's equity account and other per-share information are given as follows: a. Show the effect...
QS 13-7 Accounting for small stock dividend LO P2 The stockholders' equity section of Jun Company's balance sheet as of April 1 follows. On April 2, Jun declares and distributes a 10% stock dividend. The stock's per share market value on April 2 is $15 (prior to the dividend). pints Common stock-$5 par value, 395,000 shares authorized, 210,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings $ 1,050,000 510,000 843,000 $ 2,403,000 Total...
Stock dividend: Firm Columbia Paper has the following stockholders equity account. The firm's common stock has a current market price of $30 per share. P14-9 $100,000 $20,000 $280,000 $100,000 $500,000 Preferred stock Common stock (10,000 shares at $2 par) Paid-in capital in excess of par Retained earnings Total stockholders' equity a. Show the effects on Columbia of a 5% stock dividend. b. Show the effects of (1) a 10% and (2) a 20% stock dividend. c. In light of your...
The company with the common equity accounts shown here has declared a 10 percent stock dividend when the market value of its stock is $36 per share. Common stock ($1 par value) Capital surplus $430,000 855,000 3,810,800 Retained earnings 5,095,800 $ Total owners' equity What would be the number of shares outstanding, after the distribution of the stock dividend? (Do not round intermediate calculations.) New shares outstanding What would the equity accounts be after the stock dividend? (Do not round...
Entries for Stock Dividend Healthy Life Co. is an HMO for businesses in the Fresno area. The following account balances appear on Healthy Life's balance sheet: Common stock (260,000 shares authorized ; 7,000 shares issued), $100 par, $700,000; Paid-In Capital in excess of par-common stock, $70,000, and Retared earnings, $5,600,000. The board of drectors dedared a 1% stock dvo when the market price of the stock was $139 a share. Healthy Life reported no income or loss for the current...
Stock dividend-Firm Columbia Paper has the following stockholders equity account The firm's common stock has a current market price of $33 per share. Preferred stock Common stock (10.000 shares at $3 par) Paid-in capital in excess of par Retained eanings $110.000 30.000 300 000 100.000 $540.000 Total stockholders equity a. Show the effects on Columbia of a 5% stock dividend. b. In light of your answers to part a, discuss the effects of stock dividend on stockholders equity (Round to...
Adler Company declared a cash dividend of $1.00 per share on 20,000 shares of common stock on January 15. The dividend is to be paid one month later on February 15 to stockholders of record on January 31. Which of the following summarizes the effects of the journal entry recorded on the date of record on January 31? It decreases stockholders' equity and decreases assets. It decreases liabilities and decreases assets. It decreases stockholders' equity and increases liabilities. O No...
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