Exercise 11-7: Compare effects of a stock dividend and a
stock split.
E11-7 On October 31,...
Exercise 11-7: Compare effects of a stock dividend and a
stock split.
E11-7 On October 31, the stockholders' equity
section of Manolo Company's balance sheet consists of common stock
$648,000 and retained earnings $400,000.
Manolo is considering the following two courses of action: (1)
declaring a 5% stock dividend on the 81,000 $8 par value shares
outstanding or (2) effecting a 2‐for‐1 stock split that will reduce
par value to $4 per share.
The current market price is $17 per...
On December 31, 2020, Blossom Corporation had the following
shareholders’ equity accounts:
BLOSSOM CORPORATION
Balance Sheet...
On December 31, 2020, Blossom Corporation had the following
shareholders’ equity accounts:
BLOSSOM CORPORATION
Balance Sheet (partial)
December 31, 2020
Shareholders’ equity
Common shares (unlimited number
of shares authorized, 85,000 issued)
$1,000,000
Retained earnings
490,000
Total shareholders’ equity
$1,490,000
During the year, the following transactions occurred:
Jan.
15
Declared a $1 per share cash dividend to shareholders of record
on January 31, payable February 15.
July
1
Announced a 2-for-1 stock split. The market price per share on
the date...
How do I come up with the common
stock?
(1)
(2)
After
After
Stock
Stock
Dividend...
How do I come up with the common
stock?
(1)
(2)
After
After
Stock
Stock
Dividend
Split
Stockholders' equity:
Common stock,
$2 par
,
200,000
shares issued and outstanding
Common stock,
$1 par
,
shares issued and outstanding
Additional paid-in capital
660,000
Retained earnings
775,000
Total stockholders' equity
$ 1,635,000
Squash Delight Inc. has the following balance sheet:
Assets
Cash
$
90,000
Accounts receivable
380,000
Fixed...
Squash Delight Inc. has the following balance sheet:
Assets
Cash
$
90,000
Accounts receivable
380,000
Fixed assets
698,000
Total assets
$
1,168,000
Liabilities
Accounts payable
$
328,000
Notes payable
58,000
Common stock (120,000 shares @ $4 par)
480,000
Capital in excess of par
100,000
Retained earnings
202,000
Total liabilities & owners'
equity
$
1,168,000
The firm’s stock sells for $16 a share.
a. Show the effect on the capital accounts of a
two-for-one stock split. (Do not round intermediate
calculations...
2.4 Journal Entries
Illini Company, Inc. Balance Sheet as of 12/31/20X0
Assets
Current Assets:
Cash 1,500,000...
2.4 Journal Entries
Illini Company, Inc. Balance Sheet as of 12/31/20X0
Assets
Current Assets:
Cash 1,500,000
Accounts receivable, net 18,000
Inventory 50,000
Total current assets 1,568,000
Equipment 90,000
Goodwill 20,000
Total assets 1,678,000
Liabilities and shareholders' equity
Shareholders' equity:
Common stock, 20,000 shares outstanding, $1 par 20,000
Additional paid-in capital 280,000
Retained earnings 1,378,000
Total shareholders' equity 1,678,000
Total liabilities and shareholders' equity 1,678,000
Note that all additional paid-in capital (APIC) sub accounts
(e.g., APIC-options and APIC-treasury stock), if any,...
Problem 11-4A Prepare a statement of cash flows - indirect
method (LO11-2, 11-3)
VIDEO PHONES, INC....
Problem 11-4A Prepare a statement of cash flows - indirect
method (LO11-2, 11-3)
VIDEO PHONES, INC.
Income Statement
For the Year Ended December 31, 2018
Net
sales
$
3,336,000
Expenses:
Cost of goods sold
$
2,150,000
Operating expenses
898,000
Depreciation expense
31,000
Loss on sale of land
8,400
Interest expense
17,000
Income tax expense
52,000
Total
expenses
3,156,400
Net
income
$
179,600
VIDEO PHONES, INC.
Balance Sheet
December 31
2018
2017
Assets
Current assets:
Cash
$
273,440
$
177,520...
Alberta Inc. has the following data
1. cash - $nil;
2. accounts receivables - $30,000;
3....
Alberta Inc. has the following data
1. cash - $nil;
2. accounts receivables - $30,000;
3. inventory - $70,000.
4. Long term assets of $400,000
5. Current liabilities are $50,000.
6. sales of $1,000,000
7. operating profit of $50,000
8. interest expense of $12,500
9. tax expense of $7,500
10. total equity of $200,000
11. total debt of $300,000
12. Dividends paid - $10,000
13. Number of common shares - 1,000
14. Share price - $150
Calculate the following:
1....
Gruden Bancorp Inc. purchased a portfolio of trading securities
during Year 1. The cost and fair...
Gruden Bancorp Inc. purchased a portfolio of trading securities
during Year 1. The cost and fair value of this portfolio on
December 31, Year 1, was as follows:
1
Name
Number of Shares
Total Cost
Total Fair Value
2
Griffin Inc.
1,410.00
$28,200.00
$31,020.00
3
Luck Company
1,210.00
30,250.00
27,830.00
4
Wilson Company
840.00
29,400.00
27,720.00
5
Total
$87,850.00
$86,570.00
On May 10, Year 2, Gruden Bancorp Inc. purchased 1,060 shares of
Carroll Inc. at $26 per share plus a...
Chemalite, Inc. (B) Cash Flow Analysis Bennett Alexander, a
chemical engineer, founded Chemalite, Inc. in late...
Chemalite, Inc. (B) Cash Flow Analysis Bennett Alexander, a
chemical engineer, founded Chemalite, Inc. in late 2002. The
company was set up to manufacture and sell his latest patented
invention, the Chemalite. The first year of operations was
successful, allowing Chemalite's directors to declare a $10,000
dividend at the end of 2004. Exhibit 1 presents the income
statement and balance sheet for the year ended December 31, 2004.
During the meeting with the company shareholders, held in January
2005, Alexander...