Question

Problem 3 (Small and Large Stock Dividends) On November 7, Lauren Enterprise Company declared a share...

Problem 3 (Small and Large Stock Dividends)

On November 7, Lauren Enterprise Company declared a share capital dividend distributable to shareholders of record of November 15, distributable on December 5. The Lauren Enterprise Company has 250,000 ordinary shares with 20 par value per share at the date of declaration. The fair market value of Lauren Enterprise as follows:

November 7 – 25 per share; November 15 – 22 per share; December 5 – 24 per share.

                                                        

Requirement:

Prepare all the necessary entries to record the transaction of share capital dividends using the following independent assumptions:

  1. A 15% share capital dividend
  2. A 25% share capital dividend
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

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
Shareholders’ Equity Preferred shares cash dividends have been declared and paid. Common share cash dividends have...
Shareholders’ Equity Preferred shares cash dividends have been declared and paid. Common share cash dividends have been declared, but not paid. HEMI’s board of directors declared a 10% common stock dividend on November 1, 2019. Common shares for the stock dividends were issued to the existing common shareholders on December 30, 2019. However, the transaction has not been recorded in HEMI’s accounting records. HEMI is authorized to issue 50,000,000 common shares. HEMI issued 12,000,000 common shares on January 2, 2019...
Exercise 11-6 Stock dividends and per share book values LO P2 [The following information applies to...
Exercise 11-6 Stock dividends and per share book values LO P2 [The following information applies to the questions displayed below.] The stockholders’ equity of TVX Company at the beginning of the day on February 5 follows: Common stock—$5 par value, 150,000 shares authorized, 54,000 shares issued and outstanding $ 270,000 Paid-in capital in excess of par value, common stock 525,000 Retained earnings 675,000 Total stockholders’ equity $ 1,470,000 On February 5, the directors declare a 16% stock dividend distributable on...
At a company’s December 15 meeting, the board of directors declared a total of $80,000 dividends...
At a company’s December 15 meeting, the board of directors declared a total of $80,000 dividends payable to the common and preferred shareholders. The dividend is payable on January 15 to shareholders of record on December 31. No journal entry has been made to record this dividend. It is the company’s practice to keep dividends payable to common and preferred shareholders in separate accounts. There are 17,500 common shares with a balance of $349,197 at December 31, 20x5. There are...
On July 31, a company declared a cash dividend of $0.25 per common share to the...
On July 31, a company declared a cash dividend of $0.25 per common share to the shareholders of record on August 15. The cash dividend will be paid on August 25. This company has 500,000 shares authorized and 100,000 shares outstanding. Prepare the journal entries required on July 31, August 15 and August 25 (2.5 Marks). On July 31, a company declared a cash dividend of $0.25 per common share to the shareholders of record on August 15. The cash...
On November 20 the company declared cash dividends of $15,000. The dividends were paid on December...
On November 20 the company declared cash dividends of $15,000. The dividends were paid on December 21. Make the journal entries necessary to record both events. Which ONE of the following should be included in the journal entry necessary to record the PAYMENT of the dividends on December 21? DEBIT Cash for $15,000 DEBIT Operating Expenses for $15,000 DEBIT Common Stock at Par for $15,000 DEBIT Paid-in Capital in Excess of Par for $15,000 DEBIT Dividends Payable for $15,000
Common and Preferred Cash Dividends Wang Company currently has 200,000 shares of $1 par common stock...
Common and Preferred Cash Dividends Wang Company currently has 200,000 shares of $1 par common stock outstanding and 2,900 shares of $50 par preferred stock outstanding. On July 10, the board of directors declared a semiannual dividend of $0.33 per share on common stock to shareholders of record on August 1, payable on August 5. On July 15, the board of directors declared a semiannual dividend of $4 per share on preferred stock to shareholders of record on August 5,...
Context Corporation reports the following components of shareholders’ equity on December 31, 2015.       Share Capital—Ordinary,...
Context Corporation reports the following components of shareholders’ equity on December 31, 2015.       Share Capital—Ordinary, $25 par value, 100,000 shares authorized,    40,000 shares issued and outstanding $ 1,000,000      Share Premium—Ordinary 70,000      Retained earnings 430,000      Total shareholders' equity $ 1,500,000   In year 2016, the following transactions affected its shareholders’ equity accounts. Jan. 1 Purchased 4,000 of its own shares at $15 cash per share. Jan. 5 Directors declared a $2 per share cash dividend payable on February 28 to the...
Apr 1 Issued 6,000 common shares at $8 per share. June 15 Declared a 5% stock...
Apr 1 Issued 6,000 common shares at $8 per share. June 15 Declared a 5% stock dividend to shareholders of record on September 5, distributable on September 20. The shares were trading for $10 a share at this time. Sep. 21 Announced a 1-for-2 reverse stock split. Shares were trading at $8 per share at the time. Nov. 1 Issued 3,000 common shares at $18 per share. Dec. 20 Repurchased 10,000 common shares for $16 per share. This was the...
On December 31, 2020, Cullumber Corporation had the following shareholders’ equity accounts: CULLUMBER CORPORATION Balance Sheet...
On December 31, 2020, Cullumber Corporation had the following shareholders’ equity accounts: CULLUMBER CORPORATION Balance Sheet (partial) December 31, 2020 Shareholders’ equity      Common shares (unlimited number of shares authorized, 86,000 issued) $1,156,000      Retained earnings 560,000 Total shareholders’ equity $1,716,000 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 3-for-2 stock split. The market price per share on the date...
Hope Company has common stock ($8 par value, 220,000 shares issued and outstanding) $1,760,000 on 2020...
Hope Company has common stock ($8 par value, 220,000 shares issued and outstanding) $1,760,000 on 2020 During the year, the following transactions occurred. March 1           Declared a $2.00 cash dividend per share to stockholders. Record on March 14. May 1              Paid the dividend declared in March. May 20            Announced a 2-for-1 stock split. Prior to the split, the market price per share was$20. Aug 1               Declared a 10% stock dividend to stockholders, record on August 15, distributable August 31. On August 1, the market...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT