Question

A small stock dividend A. decreases common stock. B. has no effect on total equity. C....

A small stock dividend

A.

decreases common stock.

B.

has no effect on total equity.

C.

increases Retained Earnings.

D.

Items​ a, b, and c are correct.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer- A small stock dividend= has no effect on total equity (Option B).

Explanation- Stock dividend is a kind of dividends issued by the corporation to its shareholders in the form of additional shares and not in the form of cash. Due to the effect of small dividend, the retained earnings decreased with the market value and the total paid-in capital increased by the market value of such shares issued by the corporation, hence there is no effect on organisation total equity and total equity will remain same.

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
A small stock dividend: A. Increases common stock account by the market price of each share...
A small stock dividend: A. Increases common stock account by the market price of each share issued. B. Reduces retained earnings by the market price of each share issued. C. Reduces cash by the total market value of the shares issued. D. Does not affect the capital surplus account.
A small stock dividend: a) Results in a transfer of retained earnings to common stock and...
A small stock dividend: a) Results in a transfer of retained earnings to common stock and additional paid-in capital. b) Increases the number of shares outstanding and involves a pro rata reduction in the par value per share. c) Is accounted for in exactly the same manner as a stock split. d) Results in a transfer of retained earnings to additional paid-in capital and also increases the number of shares outstanding and involves a pro rata reduction in the par...
The company with the common equity accounts shown here has declared a 12 percent stock dividend...
The company with the common equity accounts shown here has declared a 12 percent stock dividend at a time when the market value of its stock is $59 per share. Common stock ($1 par value) $ 400,000 Capital surplus 1,572,000 Retained earnings 3,864,000 Total owners’ equity $ 5,836,000 Show the new equity account balances after the stock dividend distribution. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) Common stock $ Capital surplus...
The company with the common equity accounts shown here has declared a 11 percent stock dividend...
The company with the common equity accounts shown here has declared a 11 percent stock dividend at a time when the market value of its stock is $51 per share. Common stock ($1 par value) $ 450,000 Capital surplus 1,553,000 Retained earnings 3,874,000 Total owners’ equity $ 5,877,000 Show the new equity account balances after the stock dividend distribution. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) Common stock $ Capital surplus...
The company with the common equity accounts shown here has declared a 10 percent stock dividend...
The company with the common equity accounts shown here has declared a 10 percent stock dividend at a time when the market value of its stock is $64 per share. Common stock ($1 par value) $ 430,000 Capital surplus 1,551,000 Retained earnings 3,870,000 Total owners’ equity $ 5,851,000 Show the new equity account balances after the stock dividend distribution. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) Common stock $ Capital surplus...
The company with the common equity accounts shown here has declared a 20 percent stock dividend...
The company with the common equity accounts shown here has declared a 20 percent stock dividend when the market value of its stock is $30 per share.   Common stock ($1 par value) $ 400,000   Capital surplus 849,000   Retained earnings 3,750,800      Total owners' equity $ 4,999,800 What would be the number of shares outstanding, after the distribution of the stock dividend? (Do not round intermediate calculations.)   New shares outstanding    What would the equity accounts be after the stock dividend? (Do...
Which statement is true for the declaration and distribution of a property dividend but not a...
Which statement is true for the declaration and distribution of a property dividend but not a small stock dividend? Select one: a. Retained Earnings decreases. b. Par value per share decreases. c. Contributed capital increases. d. Total stockholders' equity does not change. e. Total assets decrease.
QS 11-7 Accounting for small stock dividend LO P2 The stockholders’ equity section of Jun Company’s...
QS 11-7 Accounting for small stock dividend LO P2 The stockholders’ equity section of Jun Company’s balance sheet as of April 1 follows. On April 2, Jun declares and distributes a 15% stock dividend. The stock’s per share market value on April 2 is $15 (prior to the dividend). Common stock—$5 par value, 435,000 shares authorized, 230,000 shares issued and outstanding $ 1,150,000 Paid-in capital in excess of par value, common stock 550,000 Retained earnings 863,000 Total stockholders' equity $...
Cash versus stock dividend  Milwaukee Tool has the following​ stockholders' equity account. The​ firm's common stock...
Cash versus stock dividend  Milwaukee Tool has the following​ stockholders' equity account. The​ firm's common stock currently sells for ​$3.98 per share. Preferred stock ​$91,000 Common stock ​(100,000 shares at $1.07 par) 107,000 ​Paid-in capital in excess of par 211,000 Retained earnings 320,000 Total​ stockholders' equity $729,000 a. Show the effects on the firm of a cash dividend of $0.10 per share. b. Show the effects on the firm of a 55​% stock dividend. c. Compare the effects in parts...
Cash versus stock dividend Milwaukee Tool has the following​ stockholders' equity account. The​ firm's common stock...
Cash versus stock dividend Milwaukee Tool has the following​ stockholders' equity account. The​ firm's common stock currently sells for $3.57 per share. Preferred stock ​$ 94,000 Common stock ​(400,000 shares at $1.01 par) 404,000 ​Paid-in capital in excess of par 214,000 Retained earnings 330000 Total​ stockholders' equity $1,042,000 A. Show the effects on the firm of a cash dividend of ​$05 per share. b. Show the effects on the firm of a 55​% stock dividend. c. Compare the effects in...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT