Question

On June 30, 2021, when Marigold Corp.'s stock was selling at $63 per share, its capital...

On June 30, 2021, when Marigold Corp.'s stock was selling at $63 per share, its capital accounts were as follows:

Capital stock (par value $50; 52000 shares issued)

$2600000
Premium on capital stock

520000
Retained earnings

4260000


If a 100% stock dividend were declared and distributed, capital stock would be

A

 $6552000.

B

 $2600000.

C

 $5200000.

D

 $3120000.
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer :-

The correct answer is Option C - $5200000.

Explanation :-

In the question it was given that 100% stock dividend were declared and distributed.It means that if an investor have 100 share then he wiil get 100 share as stock dividend.

Shares Issued = 52,000 shares issued

Stock Dividend = 100%

Share distributed as stock dividend = 52,000 shares × 100%

Share distributed as Stock Dividend = 52,000 share

Par value of share = $50

Stock Dividend = Share distribution as Stock Dividend × Par value of share

Stock Dividend = 52,000 × $50 = $2600000

When Company declared a stock dividend then Common stock would be increased as stock would increase.

Common Stock After stock dividend = Stock Dividend + Common stock before stock dividend

Common Stock After stock dividend = $2600000 + $2600000

Common Stock After stock dividend = $5200000

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
On July 31, 2020, when a company’s stock was selling at $67 per share, its equity...
On July 31, 2020, when a company’s stock was selling at $67 per share, its equity accounts were as follows: Capital stock (par value $40; 50,000 shares issued)              $2,000,000 Paid-in Capital in Excess of Par—Common Stock                   600,000 If a(an) 14% stock dividend was declared and distributed, Paid-in Capital in Excess of Par—Common Stock would be ____________________. (Note the question asks what PIC in Excess of Par - c/s is after the stock dividend, not the change in PIC in Excess of Par...
On June 30, 2011, Ole Town, Inc's reported its capital accounts as follows: Common Shares, no...
On June 30, 2011, Ole Town, Inc's reported its capital accounts as follows: Common Shares, no par, 40,000 shares outstanding $1,600,000 Retained Earnings 3,200,000 10. If a $2 per share cash dividend were declared but not paid. The capital accounts balances would show revised balances as follows: a. Common Shares: $1,520,000 and Retained Earnings: $3,280,000. b. Common Shares: $1,600,000 and Retained Earnings: $3,120,000. c. Common Shares: $1,600,000 and Retained Earnings: $3,200,000. d. Common Shares: $1,520,000 and Retained Earnings: $3,120,000. e....
The shareholders’ equity of Core Technologies Company on June 30, 2020, included the following: Common stock,...
The shareholders’ equity of Core Technologies Company on June 30, 2020, included the following: Common stock, $1 par; authorized, 8 million shares; issued and outstanding, 3 million shares $ 3,000,000 Paid-in capital—excess of par 12,000,000 Retained earnings 19,000,000 On April 1, 2021, the board of directors of Core Technologies declared a 10% stock dividend on common shares, to be distributed on June 1. The market price of Core Technologies’ common stock was $34 on April 1, 2021, and $44 on...
At the beginning of 2021, Sheffield Corp. had retained earnings of $330000. During the year Sheffield...
At the beginning of 2021, Sheffield Corp. had retained earnings of $330000. During the year Sheffield reported net income of $74100, sold treasury stock at a “gain” of $27100, declared a cash dividend of $45100, and declared and issued a small stock dividend of 1400 shares ($10 par value) when the fair value of the stock was $30 per share. The amount of retained earnings available for dividends at the end of 2021 was: $363200. $317000. $32260. $338000.
At the beginning of 2021, Sheffield Corp. had retained earnings of $403000. During the year Sheffield...
At the beginning of 2021, Sheffield Corp. had retained earnings of $403000. During the year Sheffield reported net income of $110000, sold treasury stock at a “gain” of $35000, declared a cash dividend of $60900, and declared and issued a small stock dividend of 3100 shares ($10 par value) when the fair value of the stock was $18 per share. The amount of retained earnings available for dividends at the end of 2021 was $431300. $396300. $421100. $456100.
On June 30, Sharper Corporation’s common stock is priced at $26.00 per share before any stock...
On June 30, Sharper Corporation’s common stock is priced at $26.00 per share before any stock dividend or split, and the stockholders’ equity section of its balance sheet appears as follows. Common stock—$6 par value, 90,000 shares authorized, 36,000 shares issued and outstanding $ 216,000 Paid-in capital in excess of par value, common stock 100,000 Retained earnings 316,000 Total stockholders’ equity $ 632,000 1. Assume that the company declares and immediately distributes a 100% stock dividend. This event is recorded...
Problem 11-03A On December 31, 2021, Wildhorse Co. had 1,310,000 shares of $6 par common stock...
Problem 11-03A On December 31, 2021, Wildhorse Co. had 1,310,000 shares of $6 par common stock issued and outstanding. At December 31, 2021, stockholders’ equity had the amounts listed here. Common Stock $7,860,000 Additional Paid-in Capital 1,780,000 Retained Earnings 1,110,000 Transactions during 2022 and other information related to stockholders’ equity accounts were as follows. 1. On January 10, issued at $109 per share 110,000 shares of $103 par value, 8% cumulative preferred stock. 2. On February 8, reacquired 13,800 shares...
On June 30, 2017, Sharper Corporation’s common stock is priced at $62 per share before any...
On June 30, 2017, Sharper Corporation’s common stock is priced at $62 per share before any stock dividend or split, and the stockholders’ equity section of its balance sheet appears as follows. Common stock—$10 par value, 120,000 shares authorized, 50,000 shares issued and outstanding $ 500,000 Paid-in capital in excess of par value, common stock 200,000 Retained earnings 660,000 Total stockholders’ equity $ 1,360,000 1. Assume that the company declares and immediately distributes a 50% stock dividend. This event is...
On June 30, 2017, Sharper Corporation’s common stock is priced at $34.50 per share before any...
On June 30, 2017, Sharper Corporation’s common stock is priced at $34.50 per share before any stock dividend or split, and the stockholders’ equity section of its balance sheet appears as follows. Common stock—$8 par value, 85,000 shares authorized, 34,000 shares issued and outstanding $ 272,000 Paid-in capital in excess of par value, common stock 100,000 Retained earnings 372,000 Total stockholders’ equity $ 744,000 1. Assume that the company declares and immediately distributes a 100% stock dividend. This event is...
Exercise 18-19 (Algo) Stock dividend [LO18-8] The shareholders’ equity of Core Technologies Company on June 30,...
Exercise 18-19 (Algo) Stock dividend [LO18-8] The shareholders’ equity of Core Technologies Company on June 30, 2020, included the following: Common stock, $1 par; authorized, 8 million shares; issued and outstanding, 4 million shares $ 4,000,000 Paid-in capital—excess of par 16,000,000 Retained earnings 17,000,000 On April 1, 2021, the board of directors of Core Technologies declared a 10% stock dividend on common shares, to be distributed on June 1. The market price of Core Technologies’ common stock was $38 on...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT