Homework Answers
Answer is B Decrease in Additional Paid in Capital and decrease in retained earnings
Entry for liquidating dividend is similar to cash dividend except that funds are taken from additional paid in capital
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8. A corporation declared a dividend, a portion of which was liquidating. How would this distribution...
How would the entries differ if the dividend were a liquidating dividend? Ayayai Corporation has 12.40...
How would the entries differ if the dividend were a liquidating
dividend?
Ayayai Corporation has 12.40 million shares of common stock issued and outstanding. On June 1, the board of directors voted an 74 cents per share cash dividend to stockholders of record as of June 14, payable June 30. Prepare the journal entries for each of the dates above assuming the dividend represents a distribution of earnings. (Credit account titles are automatically indented when amount is entered. Do not...
A corporation declared and issued a 20% stock dividend on October 1. The following information was...
A corporation declared and issued a 20% stock dividend on October 1. The following information was available immediately prior to the dividend Retained earnings Shares issued and outstanding Market value per share Par value per share $760,000 61,000 $ 16 $ 5 01:24:34 The amount that contributed capital will increase (decrease) as a result of recording this stock dividend is: Multiple Choice 0 0 0 O $1195.2003 561.000 0 < Prev 2 of 2018 Next >
5. On January 5, 20X9, Sardi Minerald Corp. declared a cash dividend of $600,000 to stockholders...
5. On January 5, 20X9, Sardi Minerald Corp. declared a cash dividend of $600,000 to stockholders of record on January 21, 20X9, and payable on February 11, 20X9. The dividend is permissible under the laws of Sardi's state of incorporation. The following data pertain to 20X8: Net income for year ended 12/31/X8 Additional paid-in capital Retained earnings, 12/31/X8 $190,000 675,000 425,000 The $600,000 dividend includes a liquidating dividend of $0 $175,000 $410,000 $485,000 fock а. b. 78 с. d. On...
On January 1, Cowboy Ice Cream declared a $3,000 cash dividend to be paid on January...
On January 1, Cowboy Ice Cream declared a $3,000 cash dividend to be paid on January 31 to shareholders of record on January 15. What is the effect on Cowboy Ice Cream's financial statements on January 1? (Select all that apply) Financing cash outflow of $3,000 Dividends Payable decreases by $3,000 No effect on the financial statements Net Income decreases by $3,000 Dividends decrease by $3,000 Retained Earnings decrease by $3,000 Dividends Payable increases by $3,000 Cash decreases by $3,000...
During 2020, Red Dragon Corporation had the following transactions and events: 1. Issued par value preferred...
During 2020, Red Dragon Corporation had the following transactions and events: 1. Issued par value preferred stock for cash at par value. 2. Issued par value common stock for cash at an amount greater than par value 3. Completed a 2 for 1 stock split in which the $10 par value common stock was changed to $5 par value stock. 4. Declared a small stock dividend when the market value was higher than the par value. . Declared a cash...
Grandal Industries declared and paid a dividend. How does this transaction affect the cash account? [Select]...
Grandal Industries declared and paid a dividend. How does this transaction affect the cash account? [Select] How does this transaction affect the retained earnings account? [Select) Question 25 4 pts Rosario, Inc. paid $400 on account for supplies purchased last month. How does this transaction affect the supplies account? debit How does this transaction affect the accounts payable account? credit.
26. Identify which of the following statements is true. A) A liquidating distribution of property other...
26. Identify which of the following statements is true. A) A liquidating distribution of property other than a disqualified property that is made ratably to all shareholders (based on their stockholdings) will permit the recognition of loss on the portion of the distribution that is made to a related person. B) A subsidiary corporation can recognize losses on distributions to either the parent corporation or minority shareholders in a Sec. 332 liquidation. C) Section 336 prevents recognition of a loss...
1. The stockholders' equity section of the balance sheet for Pokagon Corporation appeared as follows before...
1. The stockholders' equity section of the balance sheet for Pokagon Corporation appeared as follows before its recent stock dividend: Common stock, $10 par, 10,000 shares issued and outstanding $ 100,000 Additional paid-in capital - common 120,000 Retained earnings 150,000 Total stockholders' equity $370,000 Pokagon declared a 10% stock dividend when the market price per share was $20. After the stock dividend was distributed, the components of the stockholders' equity section were: Select one: A. Common Stock Additional Paid-in Capital...
Which of the following does not accurately describe Total Stockholder’s Equity? Represents the portion of business...
Which of the following does not accurately describe Total Stockholder’s Equity? Represents the portion of business assets not claimed by creditors Represents the value of ownership for stockholders Includes common stock and retained earnings Represents how much capital has been generated through issuance of stock All of the following accurately describe retained earnings except… The portion of total equity that is earned through profitable operations The accumulation of undistributed net income The portion of equity that is generated through issuing...
Problem 17-7 Stock Dividend Effects (LG17-6) If a firm has retained earnings of $3.2 million, a...
Problem 17-7 Stock Dividend Effects (LG17-6) If a firm has retained earnings of $3.2 million, a common shares account of $5.2 million, and additional paid-in capital of $10.4 million, how would these accounts change in response to a 10 percent stock dividend? Assume market value of equity is equal to book value of equity. (Enter your answers in dollars not in millions. Input all amounts as positive values. Indicate the direction of the effect by selecting "increase," "decrease," or "no...
How would the entries differ if the dividend were a liquidating
dividend?
Ayayai Corporation has 12.40 million shares of common stock issued and outstanding. On June 1, the board of directors voted an 74 cents per share cash dividend to stockholders of record as of June 14, payable June 30. Prepare the journal entries for each of the dates above assuming the dividend represents a distribution of earnings. (Credit account titles are automatically indented when amount is entered. Do not...
A corporation declared and issued a 20% stock dividend on October 1. The following information was available immediately prior to the dividend Retained earnings Shares issued and outstanding Market value per share Par value per share $760,000 61,000 $ 16 $ 5 01:24:34 The amount that contributed capital will increase (decrease) as a result of recording this stock dividend is: Multiple Choice 0 0 0 O $1195.2003 561.000 0 < Prev 2 of 2018 Next >
5. On January 5, 20X9, Sardi Minerald Corp. declared a cash dividend of $600,000 to stockholders of record on January 21, 20X9, and payable on February 11, 20X9. The dividend is permissible under the laws of Sardi's state of incorporation. The following data pertain to 20X8: Net income for year ended 12/31/X8 Additional paid-in capital Retained earnings, 12/31/X8 $190,000 675,000 425,000 The $600,000 dividend includes a liquidating dividend of $0 $175,000 $410,000 $485,000 fock а. b. 78 с. d. On...
On January 1, Cowboy Ice Cream declared a $3,000 cash dividend to be paid on January 31 to shareholders of record on January 15. What is the effect on Cowboy Ice Cream's financial statements on January 1? (Select all that apply) Financing cash outflow of $3,000 Dividends Payable decreases by $3,000 No effect on the financial statements Net Income decreases by $3,000 Dividends decrease by $3,000 Retained Earnings decrease by $3,000 Dividends Payable increases by $3,000 Cash decreases by $3,000...
During 2020, Red Dragon Corporation had the following transactions and events: 1. Issued par value preferred stock for cash at par value. 2. Issued par value common stock for cash at an amount greater than par value 3. Completed a 2 for 1 stock split in which the $10 par value common stock was changed to $5 par value stock. 4. Declared a small stock dividend when the market value was higher than the par value. . Declared a cash...
Grandal Industries declared and paid a dividend. How does this transaction affect the cash account? [Select] How does this transaction affect the retained earnings account? [Select) Question 25 4 pts Rosario, Inc. paid $400 on account for supplies purchased last month. How does this transaction affect the supplies account? debit How does this transaction affect the accounts payable account? credit.
26. Identify which of the following statements is true. A) A liquidating distribution of property other than a disqualified property that is made ratably to all shareholders (based on their stockholdings) will permit the recognition of loss on the portion of the distribution that is made to a related person. B) A subsidiary corporation can recognize losses on distributions to either the parent corporation or minority shareholders in a Sec. 332 liquidation. C) Section 336 prevents recognition of a loss...
Problem 17-7 Stock Dividend Effects (LG17-6) If a firm has retained earnings of $3.2 million, a common shares account of $5.2 million, and additional paid-in capital of $10.4 million, how would these accounts change in response to a 10 percent stock dividend? Assume market value of equity is equal to book value of equity. (Enter your answers in dollars not in millions. Input all amounts as positive values. Indicate the direction of the effect by selecting "increase," "decrease," or "no...
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