Question

A firms balance sheet has the following entries: Cash 10, 000, 000 total liabilities 30, 000,...

A firms balance sheet has the following entries:

Cash 10, 000, 000

total liabilities 30, 000, 000

common stock (50 par 2,000, 000 shares outstanding) 10, 000, 000

Additional paid in capital 3, 000, 000

retained earnings: 42, 000, 000

What will be each of these balance sheet entries after:

A. A three for one stock split

B. a 1.25 per share cash dividend

C. A 10 % stock dividend (current price of stock 15 a share)

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

a) 3 to 1 stock split.

There are no changes on the balance sheet, except there will be now 6,000,000 outstanding shares with 5/3 = 1.67 par value.

b) Cash dividend = 1.25 x 2,000,000 = 2,500,000

Retained earnings = 42,000,000 - 2,500,000 = 39,500,000

Cash = 10,000,000 - 2,500,000 = 7,500,000

c) 10% stock dividend

New shares = 2,000,000 x 10% = 200,000

New common stock = 10,000,000 + 200,000 x 5 = 11,000,000

New Additional paid in capital = 3,000,000 + 200,000 x (15 - 5) = 5,000,000

New retained earnings = 42,000,000 - 200,000 x 15 = 39,000,000

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
Firm A had the following selected items on its balance sheet: Cash: 28, 000, 000 Common...
Firm A had the following selected items on its balance sheet: Cash: 28, 000, 000 Common stock (50 par, 2, 000, 000 shares outstanding) 100, 000,000 Additional paid in capital 10, 000, 000 Retained earnings 62, 000, 000 HOw would each of these accounts look after: A. A cash dividend of 1 dollar a share B A 5 percent stock dividend (fair market value is 100 dollars a share) C. A one for two reverse split
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...
On June 30, Sharper Corporation’s stockholders' equity section of its balance sheet appears as follows before...
On June 30, Sharper Corporation’s stockholders' equity section of its balance sheet appears as follows before any stock dividend or split. Sharper declares and immediately distributes a 50% stock dividend. Common stock—$10 par value, 120,000 shares authorized, 74,000 shares issued and outstanding $ 740,000 Paid-in capital in excess of par value, common stock 320,000 Retained earnings 720,000 Total stockholders’ equity $ 1,780,000 Assume that instead of distributing a stock dividend, Sharper did a 3-for-1 stock split. Required: (1) Prepare the...
Included in the December 31, 2015, Jacobi Company balance sheet was the following shareholders’ equity section:...
Included in the December 31, 2015, Jacobi Company balance sheet was the following shareholders’ equity section: Jacobi Company Balance Sheet (Shareholders' Equity) December 31, 2015 1 Contributed Capital: 2 Preferred stock, 6%, $100 par $200,000.00 3 Additional paid-in capital on preferred stock 12,000.00 $212,000.00 4 Common stock, $5 par $150,000.00 5 Additional paid-in capital on common stock 240,000.00 390,000.00 6 Total contributed capital $602,000.00 7 Retained earnings 627,000.00 8 Accumulated other comprehensive income (loss): 9 Unrealized decrease in value of...
On June 30, Sharper Corporation’s stockholders' equity section of its balance sheet appears as follows before...
On June 30, Sharper Corporation’s stockholders' equity section of its balance sheet appears as follows before any stock dividend or split. Sharper declares and immediately distributes a 50% stock dividend. Common stock—$10 par value, 120,000 shares authorized, 74,000 shares issued and outstanding $ 740,000 Paid-in capital in excess of par value, common stock 320,000 Retained earnings 720,000 Total stockholders’ equity $ 1,780,000 Required: (1) Prepare the updated stockholders' equity section after the distribution is made. (2) Compute the number of...
On June 30, Sharper Corporation’s stockholders' equity section of its balance sheet appears as follows before...
On June 30, Sharper Corporation’s stockholders' equity section of its balance sheet appears as follows before any stock dividend or split. Sharper declares and immediately distributes a 50% stock dividend. Common stock—$10 par value, 120,000 shares authorized, 78,000 shares issued and outstanding $ 780,000 Paid-in capital in excess of par value, common stock 340,000 Retained earnings 730,000 Total stockholders’ equity $ 1,850,000 Required: (1) Prepare the updated stockholders' equity section after the distribution is made. (2) Compute the number of...
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,...
The stockholders’ equity section of the balance sheet for Mann Equipment Co. at December 31, Year...
The stockholders’ equity section of the balance sheet for Mann Equipment Co. at December 31, Year 1, is as follows: Stockholders’ Equity Paid-in capital Preferred stock, ? par value, 5% cumulative, 140,000 shares authorized, 44,000 shares issued and outstanding $ 440,000 Common stock, $20 stated value, 190,000 shares authorized, 44,000 shares issued and outstanding 880,000 Paid-in capital in excess of par—Preferred 34,000 Paid-in capital in excess of stated value—Common 66,000 Total paid-in capital 1,420,000 Retained earnings 290,000 Total stockholders’ equity...
1.A firm's stock sells for $200 a share. What will be the price after a (1)...
1.A firm's stock sells for $200 a share. What will be the price after a (1) two-for-one split (2) four-for-one split (3) one-for-two reverse split? 2. A firm's balance sheet has the following entries: Cash $  30,000,000 Total assets 100,000,000 Common stock (10,000,000 shares outstanding, $2 par) 20,000,000 Additional paid-in capital 5,000,000 Retained earnings 35,000,000 3. What will be each of these balance sheet entries after a (1) $2 a share cash dividend (2) four-for-one split (3) 5 percent stock dividend...
included in the December 31, 2015, Jacobi Company balance sheet was the following shareholders’ equity section:...
included in the December 31, 2015, Jacobi Company balance sheet was the following shareholders’ equity section: Jacobi Company Balance Sheet (Shareholders' Equity) December 31, 2015 1 Contributed Capital: 2 Preferred stock, 6%, $100 par $200,000.00 3 Additional paid-in capital on preferred stock 12,000.00 $212,000.00 4 Common stock, $5 par $150,000.00 5 Additional paid-in capital on common stock 240,000.00 390,000.00 6 Total contributed capital $602,000.00 7 Retained earnings 627,000.00 8 Accumulated other comprehensive income (loss): 9 Unrealized decrease in value of...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT