Question

AppsSRC AK47 Airsoft.. JG AK47 JG AK Ta... BMW M3 E92 Drif... lowa's Tyler Sash.. value 20.00 points 1. Analyze the effects of alternative distributions on stockholders' equity x Cash dividends, stock dividends, and stock splits-Excel Sign In DATA REVIEW HOME INSERT PAGE LAYOUT FORMULAS VIEW FILE A A Calibri 11 Conditional Format as Cell Paste Alignment Number Editing Cells BIU Formatting Table Styles Clipboard Font Styles D20 B C E A 3 100% $5,000 4 Stock for 1 Stock Cash 5 Stockholders' Equity 6 Contributed Capital: 7 Number of common shares outstanding 8 Par value per common share Common Stock, at par Dividend At Dec 31 Dividend Split 5,000 1.00 9 5,000 10 Additional Paid in Capital Total Contributed Capital 745,000 11 750,000 12 Retained Earnings Total Stockholders' Equity 980,000 13 1,730,000 14 15 16 Required: 17 The company is considering 3 alternative distributions to stockholders. Consider each alternative independently of the others. 18 Complete the table above and show the resulting balances on the stockholders' equity section as a result of these distributions 19 Use only cell references in formulas. Use cells C3, D3, and E3 as appropriate. Do not reference cells from one alternative in another alternative. 20 21 1) Issue a 100% stock dividend 22 OR Sheet1 READY 100% Attempt(s)

Answer 1

Stockholder's Equity	At Dec, 31	100% stock dividend	2 for 1 stock split	5000 cash dividend
Contributed capital
No of common shares outstanding	5000	10000	10000	5000
Par value per common share	$ 1	$ 1	$ 0.50	$ 1
Common stock at par	$ 5000	$ 10000	$ 5000	$ 5000
Additional paid in capital	$ 745000	$ 745000	$ 745000	$ 745000
Total contributed capital	$ 750000	$ 755000	$ 750000	$ 750000
Retained earnings	$ 980000	$ 975000	$ 980000	$ 975000
Total stockholders equity	$ 1730000	$ 1730000	$ 1730000	$ 1725000

100% stock split would credit common stock by the same number of shares outstanding and the debit will be made to retained earnings.