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(b) Show the before-and-after effects of the dividend on the shares outstanding. Before Dividend After Dividend Outstanding sharesQuestion 2 A corporations own stock that has been reacquired by the corporation and held for future use is called treasury stock and is deducted from tota and is deducted from total on the balance sheet.The stockholders equity section of Culver Corporations balance sheet consists of common stock ($ 8 par) 1,040,000 and retained earnings $ 500,000. A 10% stock dividend ( 13,000 shares) is declared when the market price per share is $18 (a) Show the before-and-after effects of the dividend on the components of stockholders equity Before Dividend After Dividend (b) Show the before-and-after effects of the dividend on the shares outstanding. Before Dividend After Dividend

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Answer #1

At the time of repurchase its own shares ,company make journal entry

Treasury stock is debited and cash is credited with cost at which shares are repurchased .

Stock dividend  affect retained earning and paid in capital

Retained earning is debited and paid in capital is credited.

faom cash (asset) aund dladucted balance shet dindend -- Taid in capitel Common &tock sRpa loolooea 3oooo shase issued lo4000 130000 1274000 966 990 Tata 1Paial uncap h p , toutooro Retained Easnnung-5

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