Homework Answers
A stock split does not effect retained earnings. It increases total number of shares outstanding and decreases price per unit of share. It also does not cause any change to shareholder's equity like paid in capital, as share price multiplied by number of shares will not be changed.
So, option A is correct.
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What is the usual effect of a stock split (effected in the form of a stock...
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...
Indicate No effect, Increase, or Decrease each of the following on Retained Earnings 1 Payment of...
Indicate No effect, Increase, or Decrease each of the following on Retained Earnings 1 Payment of cash dividends on a date different from declaration 2 Sale of Treasury Stock below cost and current PIC—Treasury Stock is zero 3 Declaration of Property Dividends 4 Acquisition of Treasury Stock 5 Stock split Effected in the Form of a Stock Dividend 6 2 for 1 Split 7 Issuance of shares of preferred stock for cash 8 Issuance of shares of common stock for...
Stock split versus stock dividend—Firm Mammoth Corporation is considering a? 3-for-2 stock split. It currently has...
Stock split versus stock
dividend—Firm
Mammoth Corporation is considering a? 3-for-2 stock split. It
currently has the? stockholders' equity position shown. The current
stock price is? $120 per share. The most recent? period's earnings
available for common stock is included in retained earnings.
a. What effect on? Mammoth's equity account
would result from the stock split?
b. What change in stock price would you expect
to result from the stock? split?
c. What is the maximum cash dividend per share...
On June 30, Sharper Corporation’s common stock is priced at $27.00 per share before any stock...
On June 30, Sharper Corporation’s common stock is priced at $27.00 per share before any stock dividend or split, and the stockholders’ equity section of its balance sheet appears as follows. Common stock—$8 par value, 85,000 shares authorized, 34,000 shares issued and outstanding $ 272,000 Paid-in capital in excess of par value, common stock 100,000 Retained earnings 372,000 Total stockholders’ equity $ 744,000 1. Assume that the company declares and immediately distributes a 100% stock dividend. This event is recorded...
ACT202: Chapter 13 Home Work Exercises Exercise 13-5: Large Stock Dividend and Stock Split: GIVEN: On...
ACT202: Chapter 13 Home Work Exercises Exercise 13-5: Large Stock Dividend and Stock Split: GIVEN: On June 30, 2017, Sharper Corporation's common stock is priced at $30.50 per share before any stock dividend or split, and the stockholders' equity section of its BS appears as follows: Common stock - $6 par value, 90,000 shares authorized, 36,000 shares issued and outstanding Paid-in capital in excess of par value, Common Stock Retained earnings Total Stockholders' Equity $ $ $ $ 216,000 100,000...
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 outstandng in an effort to reduce the market price per share to a level that the frm considers more appealing to investors. The options under consideration wo a 20stock dividend and, alternatively, a 5-kor 4 stock split At the present time, the firm's equally account and other per share information are given as follows: a. Show the...
Indicate the effect of each of the following on Retained Earnings 1 Payment of cash dividends...
Indicate the effect of each of the following on Retained Earnings 1 Payment of cash dividends on a date different from declaration IncreaseDecreaseNo Effect 2 Sale of Treasury Stock below cost and current PIC—Treasury Stock is zero IncreaseDecreaseNo Effect 3 Declaration of Property Dividends IncreaseDecreaseNo Effect 4 Acquisition of Treasury Stock IncreaseDecreaseNo Effect 5 Stock split Effected in the Form of a Stock Dividend IncreaseDecreaseNo Effect 6 2 for 1 Split IncreaseDecreaseNo Effect 7 Issuance of shares of preferred stock...
Problem 10-3B Indicate effect of stock dividends and stock splits (L010-6) The Athletic Village has done...
Problem 10-3B Indicate effect of stock dividends and stock splits (L010-6) The Athletic Village has done very well the past year, and its stock price is now trading at $90 per share Management is considering either a 100% stock dividend or a 2 for 1 stock split. Required: Complete the following table comparing the effects of a 100% stock dividend versus a 2-for-1 stock split on the stockholders' equity accounts, shares outstanding, par value, and share price. (Round "Par value...
On June 13, the board of directors of Siewert Inc. declared a 2-for-1 stock split on...
On June 13, the board of directors of Siewert Inc. declared a
2-for-1 stock split on its 60 million, $1.00 par, common shares, to
be distributed on July 1. The market price of Siewert common stock
was $25 on June 13.
Prepare the journal entry to record the stock split if it is to be
effected in the form of a 100% stock dividend. What is the par per
share after the split?
PLEASE NOTE = $.50 and $12.50
were...
Multiple Choice Question 99 On January 1, 2018, Sheffield Corp., dedared a 10% stock dividend on...
Multiple Choice Question 99 On January 1, 2018, Sheffield Corp., dedared a 10% stock dividend on its common stock when the fair value of the common stock was $32 per share. Stockholders' equity before the stock dividend was declared consisted of: Common stock, $10 par value, authorized 200,000 shares; Issued and outstanding 129000 shares $1290000 Additional paid in capital on common stock 149000 Retained earnings 659000 Total stockholders' equity $2098000 What was the effect on Sheffield's retained earnings as a...
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...
Stock split versus stock
dividend—Firm
Mammoth Corporation is considering a? 3-for-2 stock split. It
currently has the? stockholders' equity position shown. The current
stock price is? $120 per share. The most recent? period's earnings
available for common stock is included in retained earnings.
a. What effect on? Mammoth's equity account
would result from the stock split?
b. What change in stock price would you expect
to result from the stock? split?
c. What is the maximum cash dividend per share...
ACT202: Chapter 13 Home Work Exercises Exercise 13-5: Large Stock Dividend and Stock Split: GIVEN: On June 30, 2017, Sharper Corporation's common stock is priced at $30.50 per share before any stock dividend or split, and the stockholders' equity section of its BS appears as follows: Common stock - $6 par value, 90,000 shares authorized, 36,000 shares issued and outstanding Paid-in capital in excess of par value, Common Stock Retained earnings Total Stockholders' Equity $ $ $ $ 216,000 100,000...
Stock dividend versus stock split Firm The board of Wicker Home Health Care, Inc. is exploring ways to expand the number of shares outstandng in an effort to reduce the market price per share to a level that the frm considers more appealing to investors. The options under consideration wo a 20stock dividend and, alternatively, a 5-kor 4 stock split At the present time, the firm's equally account and other per share information are given as follows: a. Show the...
Problem 10-3B Indicate effect of stock dividends and stock splits (L010-6) The Athletic Village has done very well the past year, and its stock price is now trading at $90 per share Management is considering either a 100% stock dividend or a 2 for 1 stock split. Required: Complete the following table comparing the effects of a 100% stock dividend versus a 2-for-1 stock split on the stockholders' equity accounts, shares outstanding, par value, and share price. (Round "Par value...
On June 13, the board of directors of Siewert Inc. declared a
2-for-1 stock split on its 60 million, $1.00 par, common shares, to
be distributed on July 1. The market price of Siewert common stock
was $25 on June 13.
Prepare the journal entry to record the stock split if it is to be
effected in the form of a 100% stock dividend. What is the par per
share after the split?
PLEASE NOTE = $.50 and $12.50
were...
Multiple Choice Question 99 On January 1, 2018, Sheffield Corp., dedared a 10% stock dividend on its common stock when the fair value of the common stock was $32 per share. Stockholders' equity before the stock dividend was declared consisted of: Common stock, $10 par value, authorized 200,000 shares; Issued and outstanding 129000 shares $1290000 Additional paid in capital on common stock 149000 Retained earnings 659000 Total stockholders' equity $2098000 What was the effect on Sheffield's retained earnings as a...
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