![$624,000 8. Stock Dividends [L03] The company with the common equity accounts shown here has declared a 15 percent stock dividend when the market value of its stock is $53 per share. What effects will the distribution of the stock dividend have on the equity accounts? Common stock ($1 par value) Capital surplus Retained earnings $ 245,000 618,000 2,758,300 $3,621,300 Total owners equity](http://img.homeworklib.com/questions/bb5805c0-78b5-11ea-a50d-690735c21668.png?x-oss-process=image/resize,w_560)
Homework Answers
working:
number of shares outstanding = common stock value / par value per share
=>$245,000 / $1
=>245,000 shares.
number of new shares to be issued = 245,000 *15% =>36,750 shares.
total number of shares = 245,000+ 36,750
=>281,750 shares.
value of 36,750 shares issued = 36,750 *$53
=>$1,947,750.
amount to be added to common stock account = 36,750 new shares * $1 par value per share =>$36,750.
amount added to new capital surplus will be 36,750 shares * ($53 market value - $1 par value)
=>$1,911,000.
amount to be reduced from retained earnings = $36,750 par value + $1,911,000 new capital surplus.=$1,947,750.
the following is the required table:
| item | increase / (decrease by) | amount |
| common stock ($1 par value) | $36,750 | $281,750 |
| capital surplus (618,000+1,911,000) | 1,911,0000 | 2,529,000 |
| retained earnings | (1,947,750) | 810,550 |
| 3,621,300 |
Add Answer to:
$624,000 8. Stock Dividends [L03] The company with the common equity accounts shown here has declared...
The company with the common equity accounts shown here has declared a 15 percent stock dividend...
The company with the common
equity accounts shown here has declared a 15 percent stock dividend
when the market value of its stock is $53 per share.
The company with the common equity accounts shown here has declared a 15 percent stock dividend when the market value of its stock is $53 per share. Common stock ($1 par value) Capital surplus Retained earnings $ 245,000 618,000 2,758,300 Total owners' equity $3,621,300 What would be the number of shares outstanding, after...
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...
The company with the common equity accounts shown here has declared a 15 percent stock dividend...
The company with the common equity accounts shown here has declared a 15 percent stock dividend when the market value of its stock is $41 per share. Common stock ($1 par value) $ 395,000 Capital surplus 848,000 Retained earnings 3,740,800 Total owners' equity $ 4,983,800 What would be the number of shares outstanding, after the distribution of the stock dividend? New shares outstanding What would the equity accounts be after the stock dividend? Common stock $ Capital surplus Retained earnings...
The company with the common equity accounts shown here has declared a stock dividend of 10...
The company with the common equity accounts shown here has declared a stock dividend of 10 percent at a time when the market value of its stock is $34 per share. Common stock ($1 par value) $ 420,000 Capital surplus 853,000 Retained earnings 3,790,800 Total owners' equity $ 5,063,800 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...
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 at a time when the market value of its stock is $48 per share. Common stock ($1 par value) Capital surplus $225,000 1,070,000 2,543,000 Retained earnings Total owners' equity $3,838,000 Show the new equity account balances after the stock dividend distribution. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) Common stock Capital surplus Retained earnings Total...
The company with the common equity accounts shown here has declared a 14 percent stock dividend at a time when the mark...
The company with the common equity accounts shown here has declared a 14 percent stock dividend at a time when the market value of its stock is $47 per share. $120.000 Common stock ($1 par value) Capital surplus 1,550,000 3,868,000 Retained earnings Total owners' equity $5,838,000 Show the new equity account balances after the stock dividend distribution. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) Common stock Capital surplus Retained earnings Total...
Chapter 14 - Dividends and Dividend Policy Saved The company with the common equity accounts shown...
Chapter 14 - Dividends and Dividend Policy Saved The company with the common equity accounts shown here has declared a 13 percent stock dividend at a time when the market value of its stock is $53 per share. $410,000 Common stock (51 par value) Capital surplus Skipped 1,573,000 3,866,000 Retained earnings Total owners' equity $5,849,000 Show the new equity account balances after the stock dividend distribution. (Do not round intermediate calculations and round your answers to the nearest whole number,...
#1) The owners’ equity accounts for Trans World International are shown here: Common stock ($1 pa...
#1) The owners’ equity accounts for Trans World International are shown here: Common stock ($1 par value) $ 85,000 Capital surplus 227,000 Retained earnings 750,000 ________________________________________ ________________________________________ ________________________________________ ________________________________________ Total owners’ equity $ 1,062,000 ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________ Requirement 1: Assume Trans World stock currently sells for $28 per share and a stock dividend of 20 percent is declared. (a) How many new shares will be distributed? New shares issued (b) Show the new balance for each equity account....
The company with the common equity accounts shown here has declared a 5-for-1 stock split when...
The company with the common equity accounts shown here has declared a 5-for-1 stock split when the market value of its stock is $40 per share. The firm's 70-cent per share cash dividend on the new (postsplit) shares represents an increase of 20 percent over last year's dividend on the presplit stock. Common stock ($1 par value) Capital surplus $390,000 847,000 3,730,800 Retained earnings 4,967,800 Total owner's equity a. What is the new par value per share? (Do not round...
The owners' equity accounts for Vidi International are shown here: Common stock ($.50 par value) Capital...
The owners' equity accounts for Vidi International are shown here: Common stock ($.50 par value) Capital surplus Retained earnings $ 38,000 330,000 728,120 Total owners' equity $1,096,120 a-1 If the company's stock currently sells for $20 per share and a 10 percent stock dividend is declared, how many new shares will be distributed? (Do not round intermediate calculations.) New shares issued a-2 Show how the equity accounts would change. (Do not round intermediate calculations.) Common stock Capital surplus Retained earnings...
The company with the common
equity accounts shown here has declared a 15 percent stock dividend
when the market value of its stock is $53 per share.
The company with the common equity accounts shown here has declared a 15 percent stock dividend when the market value of its stock is $53 per share. Common stock ($1 par value) Capital surplus Retained earnings $ 245,000 618,000 2,758,300 Total owners' equity $3,621,300 What would be the number of shares outstanding, after...
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...
The company with the common equity accounts shown here has declared a 10 percent stock dividend at a time when the market value of its stock is $48 per share. Common stock ($1 par value) Capital surplus $225,000 1,070,000 2,543,000 Retained earnings Total owners' equity $3,838,000 Show the new equity account balances after the stock dividend distribution. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) Common stock Capital surplus Retained earnings Total...
The company with the common equity accounts shown here has declared a 14 percent stock dividend at a time when the market value of its stock is $47 per share. $120.000 Common stock ($1 par value) Capital surplus 1,550,000 3,868,000 Retained earnings Total owners' equity $5,838,000 Show the new equity account balances after the stock dividend distribution. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) Common stock Capital surplus Retained earnings Total...
Chapter 14 - Dividends and Dividend Policy Saved The company with the common equity accounts shown here has declared a 13 percent stock dividend at a time when the market value of its stock is $53 per share. $410,000 Common stock (51 par value) Capital surplus Skipped 1,573,000 3,866,000 Retained earnings Total owners' equity $5,849,000 Show the new equity account balances after the stock dividend distribution. (Do not round intermediate calculations and round your answers to the nearest whole number,...
The company with the common equity accounts shown here has declared a 5-for-1 stock split when the market value of its stock is $40 per share. The firm's 70-cent per share cash dividend on the new (postsplit) shares represents an increase of 20 percent over last year's dividend on the presplit stock. Common stock ($1 par value) Capital surplus $390,000 847,000 3,730,800 Retained earnings 4,967,800 Total owner's equity a. What is the new par value per share? (Do not round...
The owners' equity accounts for Vidi International are shown here: Common stock ($.50 par value) Capital surplus Retained earnings $ 38,000 330,000 728,120 Total owners' equity $1,096,120 a-1 If the company's stock currently sells for $20 per share and a 10 percent stock dividend is declared, how many new shares will be distributed? (Do not round intermediate calculations.) New shares issued a-2 Show how the equity accounts would change. (Do not round intermediate calculations.) Common stock Capital surplus Retained earnings...
Most questions answered within 3 hours.
-
There are two flasks on the bench top, one flask contains a 0.50
M NaCl solution...
asked 59 seconds ago -
Which of the following aqueous solutions are good buffer
systems?
.
0.10 M hydrofluoric acid +...
asked 2 minutes ago -
2. An S election is terminated if the S corporation has passive
investment income in excess...
asked 4 minutes ago -
Part of an ANOVA table is shown below.
Source of
Variation
Sum of
Squares
Degrees of...
asked 21 minutes ago -
Business process improvement initiatives often include
introducing new technology to support the new or changed ways...
asked 27 minutes ago -
Review your choice of either Agile or the Waterfall models and
for each of the 22...
asked 28 minutes ago -
Suppose an x distribution has mean μ = 4.
Consider two corresponding
x
distributions, the first...
asked 30 minutes ago -
A study of the effects of exercise used rats bred to have high
or low capacity...
asked 57 minutes ago -
Using your data from the experiment, calculate the initial moles
of HCl that you started with....
asked 57 minutes ago -
Suppose you want to make 500 mL of a 0.20 M Tris buffer at pH
8.0....
asked 58 minutes ago -
The titanic hit an iceberg estimated to be half of her mass.
Before hitting the iceberg,...
asked 1 hour ago -
3. The top four firms in Industry A have market shares of 30,
25, 10, and...
asked 1 hour ago