If the company had a2:1 stock split on it's common stock would retained earnings increase decrease or stay the same? →Below is a stockholders' equity section of Crimson, Inc.:6% noncumulative preferred stock $50 par value,1,000,000 sharesauthorized, 40,000 shares issued &outstanding$2,000,000Common stock, $10 par, 10,000,000 authorized,800,000 shares issued, 750,000outstandingAdditional paid in capital$ 2,000,000Retained earnings$20,000,000Treasurystock($800,000)Total stockholders' equity$21,700,000$8,000,000

Split of Shares/Stock: When an organization splits the shares, it increases the number of shares of…

Answered: → Below is a stockholders' equity…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 5MCQ

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Alert Companys shareholders equity prior to any of the following events is as follows: The company is considering the following alternative items: 1. An 8% stock dividend on the common stock when it is selling for 30 per share. 2. A 30% stock dividend on the common stock when it is selling for 32 per share. 3. A special stock dividend to common shareholders consisting of 1 share of preferred stock for every 100 shares of common stock. The preferred stock and common stock are selling for 123 and 31 per share, respectively. 4. A 2-for-1 stock split on the common stock, reducing the par value to 5 per share (assume the same date for declaration and issuance). The market price is 30 per share on the common stock. 5. A property dividend to common shareholders consisting of 100 bonds issued by West Company. These bonds are carried on the Alert Company books as an available-for sale investment at a fair value of 48,000 (which is also its cost); it has a current value of 54,000. 6. A cash dividend, consisting of a normal dividend and a liquidating dividend, on both the preferred and the common stock. The 10% preferred dividend includes a 2% liquidating dividend, and the 2.30 per share common dividend includes a 0.30 per share liquidating dividend (separate liquidating dividend contra accounts should be used). Required: For each of the preceding alternative items: 1. Record (a) the journal entry at the date of declaration and (b) the journal entry at the date of issuance. 2. Compute the balances in the shareholders equity accounts immediately after the issuance (any gains or losses are to be reflected in the retained earnings balance; ignore income taxes).
Prepare the shar (b) financial position at Decen to shareholders' equity 1. The following information relates Preference Share Capital, 12%, P50 par cumulative, 10,000 shares authorized Ordinary Share Capital, P1 stated value, 2,000,000 shares authorized Share Premium - Preference Paid in Capital in Excess of Stated Value Retained Earnings P 400,000 1,000,000 80,000 1,400,000 1,816,000 40,000 Treasury Shares - Ordinary (10,000 shares) During 2018, the corporation had the following transactions and events pertaining to its shareholders' equity: Issued 20,000 ordinary shares for P100,000 Sold 6,000 treasury shares for P28,000. Issued 5,000 shares of ordinary share capital for a piece of equipment with cash price of P25,000. Purchased 1,000 shares of ordinary for the treasury at a cost of P6,000. Declared the annual dividend on preference share and PO.20 cash dividend on ordinary share. Determined that profit for the year was P377,000 Feb. 1 Apr. 30 Sept. 1 Nov. 2 Dec. 31 31 31 The fair…
ion Shown below is information relating to the stockholders' equity of Ozone Corporation at June 30, 2023. $400,000 6% cumulative preferred stock, $100 par, 50,000 shares authorized Common stock, $4.55 par, 40,000 shares authorized; 30,800 shares issued and outstanding Additional paid-in capital: preferred stock Additional paid-in capital: common stock Retained earnings What is total paid-in capital? Select one: O a. $2,160,000. O b. $540,000. O c. $2,040,000. O d. $660,000. $140,000 $100,000 $1,400,000 $120,000
The shareholders' equity section of PRAY Corp. on December 31, 20x1 appeared as follows: Preference share, P50 par. 250.000 shares authorized, share issued Ordinary share. P20 par, 500,000 shares authorized share issued and shares outstanding 2,000,000 Share premium - preference share 250.000 Share premium - ordinary 200,000 Retained earnings 2.500,000 Treasury shares 50,000 Total Shareholders Equity HOW MUCH IS THE UNAPPROPRIATED RETAINED EARNINGS?
Prepare the Stockholders' Equity Section Renee Corporation has the following stockholders' equity information: $5 Par Common $10 Par Preferred Additional paid-in capital $2,250,000 $50,000 Shares: Authorized 750,000 40,000 Issued 300,000 8,000 Outstanding 250,000 8,000 Retained earnings is $1,837,000, and the cost of treasury shares is $1,200,000. Required: Prepare the stockholders' equity portion of Renee's balance sheet.
The shareholders' equity section of Casey Inc. as at December 31, 20x0 is as follows: Preferred Shares – Series A, $4, cumulative and fully participating, 25,000 shares outstanding Preferred Shares, Series B, 6%, noncumulative and non participating Common Shares, 600,000 shares outstanding Contributed Surplus, common share repurchases Retained earnings S2,500,000 1,400,000 11,200,000 422,000 5,800,000 The following transactions occurred during the year ended December 31, 20x1: Jan 2 Issued an additional 15,000 Preferred Shares – Series A for S1,500,000. Mar 1 Issued 200,000 common shares for total proceeds of $5,000,000 Mar 8 Incurred underwiter and legal fees related to the common share issue of March 1 of $325,000 Purchased land in exchange for 20,000 common shares. The fair value of the land was $375,000. The common shares were trading for $18.20 per share on April 15. April 15 Declared a 3:1 stock split. The effect of the split was to drop the fair value per share from $18 to $9.…
The shareholders’ equity of Raven Company is as shown: RAVEN COMPANY Partial Balance Sheet 1 Common stock, $10 par $200,000.00 2 Additional paid-in capital on common stock 100,000.00 3 Retained earnings 200,000.00 4 $500,000.00 Raven is considering the declaration and issuance of a stock dividend at a time when the market price is $25 per share. Required: 1. Assuming the board of directors recommends a 6% stock dividend, prepare: a. the journal entry at the date of declaration b. the journal entry at the date of issuance c. shareholders’ equity after the issuance 2. Assuming, instead, that a 40% stock dividend is recommended, answer a, b, and c of Requirement 1. Chart of Accounts CHART OF ACCOUNTS Raven Company General Ledger ASSETS 111 Cash 121 Accounts Receivable 141 Inventory 152 Prepaid Insurance 181 Equipment 189 Accumulated Depreciation…
Partiow Company has the following stockholders' equity: Paid-in-capital Preferred stock, 5% $15par, 7000 shares authorized, 5,500 shares issued. common stock, $0.30 par, 1,200,000 shares authorized and issued paid-in-capital in excess of par-common Total paid in capital Retained Eaming Total stockholder's Equity 82,500 360,000 400,000 842,500 260,000 1,102,500 1. Is Partlow's preferred stock cumulative or noncumulative? How can you tell? 2. Partlow declares cash dividends of $30,000 for 2010. How much of thedividends goes to preferred. How much goes to common? 3. Partlow passed the preferred dividend in 2011 and 2012. In 2013 thecompany declares cash dividends of $45,000. How much of the dividend goes topreferred? How much goes to common?
The shareholders’ equity of Raven Company is as shown: RAVEN COMPANY Partial Balance Sheet 1 Common stock, $10 par $300,000.00 2 Additional paid-in capital on common stock 200,000.00 3 Retained earnings 200,000.00 4 $700,000.00 Raven is considering the declaration and issuance of a stock dividend at a time when the market price is $20 per share Required: 1. Assuming the board of directors recommends a 6% stock dividend, prepare: a. the journal entry at the date of declaration b. the journal entry at the date of issuance c. shareholders’ equity after the issuance 2. Assuming, instead, that a 40% stock dividend is recommended, answer a, b, and c of Requirement 1. Please only answer number 2 :)
The shareholders’ equity of Raven Company is as shown: RAVEN COMPANY Partial Balance Sheet 1 Common stock, $10 par $300,000.00 2 Additional paid-in capital on common stock 200,000.00 3 Retained earnings 200,000.00 4 $700,000.00 Raven is considering the declaration and issuance of a stock dividend at a time when the market price is $20 per share. Required: 1. Assuming the board of directors recommends a 6% stock dividend, prepare: a. the journal entry at the date of declaration b. the journal entry at the date of issuance c. shareholders’ equity after the issuance
The shareholders’ equity of Raven Company is as shown: RAVEN COMPANY Partial Balance Sheet 1 Common stock, $10 par $300,000.00 2 Additional paid-in capital on common stock 200,000.00 3 Retained earnings 200,000.00 4 $700,000.00 Raven is considering the declaration and issuance of a stock dividend at a time when the market price is $20 per share. Required: 1. Assuming the board of directors recommends a 6% stock dividend, prepare: a. the journal entry at the date of declaration b. the journal entry at the date of issuance c. shareholders’ equity after the issuance 2. Assuming, instead, that a 40% stock dividend is recommended, answer a, b, and c of Requirement 1.
Joshua Corporation's stockholders' equity at December 31, 20x5 consisted of the following: 8% cumulative preference share, P50 par, authorized, issued, and outstanding 20,000 shares P1,000,000 Ordinary Shares P25 par; 200,000 shares authorized 2, 500,000 100,000 shares issued and outstanding Retained Earnings 400,000 Dividends on preferred have been paid through 20x4 but have not been declared for 20x5. Compute for the book value per ordinary share at December 31, 20x5. (Round- off answer to two decimal places)

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