I'm confused and don't understand this very well. Can someone please explain why we do the computations to arrive at these numbers? I know that this is easy math, I just don't understand it conceptually. Therefore, I don't know when to do what computations and why. Thanks
1) | Before | Value | 10% stock dividend | After dividend | Calculation | Value | 20% stock dividend | After dividend | Calculation | |
FMV | 25 | 40 | ||||||||
Dividend shares | 5000 | 50000*10% | 10000 | 50000*20% | ||||||
Common Stock@$5 par | 250000 | 5 | 25000 | 275000 | 5000*5 | 5 | 50000 | 300000 | 10000*5 | |
Paid in Capital | 120000 | 20 | 100000 | 220000 | (5000*25)-25000 | 35 | 350000 | 470000 | (10000*40)-50000 | |
Retained Earnings | 450000 | -125000 | 325000 | -400000 | 50000 | |||||
Total SH Equity | 820000 | 820000 | 820000 | |||||||
Shares outstanding | 50000 | 55000 | 60000 | |||||||
2) | Before | Value | 100% stock dividend | After dividend | Calculation | Value | 2:1 stock split | After Split | Calculation | |
FMV | 30 | NA | ||||||||
Dividend/Split shares | 50000 | 50000*100% | 50000 | (50000*2/1)-50000 | ||||||
Common Stock@$5 par | 250000 | 5 | 250000 | 500000 | 50000*5 | 2.5 | 0 | 250000 | ||
Paid in Capital | 120000 | 25 | 1250000 | 1370000 | (50000*30)-250000 | 0 | 120000 | |||
Retained Earnings | 750000 | -1500000 | -750000 | 0 | 750000 | |||||
Total SH Equity | 1120000 | 1120000 | 1120000 | |||||||
Shares outstanding | 50000 | 100000 | 100000 | |||||||
Par Value | 5 | 5 | 2.5 |
I'm confused and don't understand this very well. Can someone please explain why we do the...
I'm confused. Why are we multiplying by 200% instead of 100%? How do we get 370,000 (please show computation). # of dividend shares = 76,000x2= 152,000 2-for-1 stock split lorge stock I dividend # of dividend shares = computation: 74.000 x 2007 - answer: 152.0oon4.000 $ 100% stock dividend Stockholders' Equity section of balance sheet et value 76,000 (FMV = $30/share) Common Stock, $5 par value, 300,000 shares 152000 5700 authorized, 76,000 shares issued and outstanding $ 4 380,000195 7...
Please help me fill this out and explain the computations. At the bottom I'm supposed to do journal entries to record both the dividend declaration and it's distribution along with journal entries to prepare the stockholders' equity section after the stock dividend is distributed (assume no other changes to equity). Let me know if you need any other information. If so, I can add another picture. Thanks! 50% stock dividend (par value) 3-for-1 stock split Stockholders' Equity section of balance...
Please help me fill the rest of this out and explain the computations. Additionally, on Feb. 5th the directors declare a 20% stock dividend distributable on Feb. 28th to the Feb. 15th stockholders of record. The stock's market value is $40 per share on Feb. 5th before the stock dividend. 1. Prepare entries to record both the dividend declaration and its distribution. 2. Prepare the stockholders' equity section after the stock dividend is distributed. (Assume no other changes to equity)....
Hi, I'm somewhat confused with the calculation here: Problem 11-4A Analyzing changes in stockholders’ equity accounts LO C3, P2, P3 [The following information applies to the questions displayed below.] The equity sections for Atticus Group at the beginning of the year (January 1) and end of the year (December 31) follow. Stockholders’ Equity (January 1) Common stock—$4 par value, 100,000 shares authorized, 40,000 shares issued and outstanding $ 160,000 Paid-in capital in excess of par value, common stock 120,000 Retained...
Please do them all in order. thanks! 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, 216,000 100,000 36,000 shares issued and outstanding Paid-in capital in excess of par value, Common Stock Retained earnings 316,000 632,000...
Answer in these formats please!! thank you! Ilhe following intormation applies to the questions displayed below.) The equity sections for Atticus Group at the beginning of the year (January 1) and end of the year (December 31) follow. Stockholders' Equity (January 1) Common stock-$6 par value, 100,000 shares authorized, 35,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $210,000 170,000 340,000 $720,000 Stockholders' Equity (December 31) Common stock-$6 par value,...
can you please explain as well? CH13 Graded Written Homework Problem 1 In some cases, companies elect to pay dividends to stockholders in the form of additional shares of stock instead of cash. A stock dividend is normally declared only on common stock and issued to common stockholders. An analysis of Cheerios, Inc.'s common stock is as follows: Shares authorized Shares issued Shares outstanding Number of Common Shares 450,000 325,000 310,000 On February 1, Cheerios, Inc. declared a 8% stock...
Can someone please help explain how to solve this problem and find the numbers. Thank you. E11-3 Preparing the Stockholders' Equity Section of the Balance Sheet [LO 11-2, LO 11-4] 25 pints North Wind Aviation received its charter during January authorizing the following capital stock: Preferred stock: 8 percent, par $10, authorized 20,000 shares. Common stock: par $1, authorized 50,000 shares. The following transactions occurred during the first year of operations in the order given: a. Issued a total of...
Exercise 11-11 The stockholders’ equity section of Monty Corp. at December 31 is as follow Monty Corp. Balance Sheet(Partial) Paid-in capital Preferred stock, cumulative, 14,000 shares authorized, 9,800 shares issued and outstanding $588,000 Common stock, no par, 880,000 shares authorized, 560,000 shares issued 1,120,000 Total paid-in capital 1,708,000 Retained earnings 1,858,000 Total paid-in capital and retained earnings 3,566,000 Less: Treasury stock (12,000 common shares) 62,400 Total stockholders’ equity $3,503,600 From a review of the stockholders’ equity section, as chief accountant,...
The equity sections from Salazar Group’s 2011 and 2012 year-end balance sheets follow.Stockholders’ Equity (December 31, 2011)Common stock—$6 par value, 50,000 sharesauthorized, 35,000 shares issued and outstanding $ 210,000Paid-in capital in excess of par value, common stock 170,000Retained earnings 340,000Total stockholders’ equity $ 720,000Stockholders’ Equity (December 31, 2012)Common stock—$6 par value, 50,000 sharesauthorized, 41,200 shares issued, 4,000 shares in treasury $ 247,200Paid-in capital in excess of par value, common stock 219,600Retained earnings ($60,000 restricted by treasury stock) 400,000866,800Less cost of...