Solution.
18- D, no effect.
Declaration of stock dividends, whether large or small does not affect the par value per share because any excess is accounted as paid up capital.
19. D. Annual rate.
The contractual rate is stated as an annual rate.
18. Identify the effect the declaration and distribution of a stock dividend has on the par...
16 Indicate the respective effects of the declaration of a cash dividend on balance sheet sections: Total Assets Total Liabilities Total Stockholders' Equity Increase Decrease No change b. No change Increase Decrease Decrease Increase Decrease Decrease No change a. C. d. Increase 17. Somento Forest Inc. has 10,000 shares of 6%, $100 par value, cumulative preferred stock and 100,000 shares of $1 par value common stock outstanding at December 31, 2020. What is the annual dividend on the preferred stock?...
Supreme Water Sports has 12,000 shares of $3 par value common stock outstanding. Supreme distributes a 15% stock dividend when the market value of its stock is $18 per share Read the requiremegts. Requirement 1. Journalize Supreme's declaration of the stock dividend on September 15 and distribution on September 30. (Record debits first, then credits. Select the explanation on the last line of the journal entry table) Start by journalizing the declaration of 1 0 Requirements Date Sep. 15 1....
012-4 XERCISE 12.7 ash Dividends, Stock vidends, and Stock Splits HiTech Manufacturing Company has 1,000,000 shares of $1 par value capital stock outstanding on January 1. The following equity transactions occurred during the current year: Distributed additional shares of capital stock in a 2-for-1 stock split. Market price of stock was $35 per share. Declared a cash dividend of $0.60 per share. Apr. 30 June July Aug. 1 Paid the $0.60 cash dividend to stockholders. Declared a 5 percent stock...
he effects of the entry to record the declaration of the dividend on June 14, 2016 a. decrease stockholders' equity and increase liabilities. increase stockholders' equity and increase liabilities. decrease stockholders' equity and decrease assets d. C. increase stockholders' equity and decrease assets. When common stock is issued by a corporation for a cash price above par value, t over the par value should be reported in the financial statements as a component of retained earnings on the balance sheet....
Cash and Stock Dividends Debra Corporation has 24,000 shares of $1 par value common stock outstanding. The company has $200,000 of retained earnings. At year-end, the company declares a cash dividend of $2.00 per share and a five percent stock dividend. The market price of the stock at the declaration date is $24 per share. Three weeks later, the company pays the dividends. a. Prepare the journal entry for the declaration of the cash dividend. b. Prepare the journal entry...
EXERCISE 12.7 Cash Dividends, Stock Dividends, and Stock Splits HiTech Manufacturing Company has 1.000.000 shares of Si par value capital stock outstand: January 1. The following equity transactions occurred during the current year: Apr. 30 Distributed additional shares of capital stock in a 2-for-1 stock split. Market price arket price of stock was $35 per share. June 1 Declared a cash dividend of 50.60 per share. July Paid the 80.60 cash dividend to stockholders. Aug 1 Declared a 5 percent...
The per share amount normally assigned by the board of directors to a large stock dividend is Select one: a. 44) the market value of the stock on the date of declaration. b. the average price paid by stockholders on outstanding shares. c. zero. d. the par or stated value of the stock.
How will a company's total current liabilities and total stockholders' equity be affected by the declaration of a stock dividend? (Assume the stock dividend is distributed at a later date.) Total Total Current Liabilities Stockholders' Equity I. increase decrease II. increase no effect III. no effect decrease IV. no effect no effect Select one: a. III b. I c. II d. IV
Stock Dividends Witt Corporation has 80,000 shares of S5 par value common stock outstanding. At year-end, the company declares a five percent stock dividend. The market price of the stock on the declaration date is $20 per share. Four weeks later, the company issues the shares of stock to stockholders. a. Prepare the journal entry for the declaration of the stock dividend. b. Prepare the journal entry for the issuance of the stock dividend. C. Assume that the company declared a 30 percent stock...
Kachus Kate's preferred stock has a stated dividend rate of 10% and a par value per share of 500.00. In today's market similar shares of preferred stock are providing a yield of about 12% What is one share of Kate's preferred worth? Round to the nearest cent)