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- The common stock of Blue Inc. is currently selling at $114 per share. The directors wish to reduce the share price and increase share volume prior to a new issue. The per share par value is $10; book value is $71 per share. 9.60 million shares are issued and outstanding. Prepare the necessary journal entries assuming the following. (Enter amounts in dollars. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) (a) The board votes a 2-for-1 stock split. (b) The board votes a 100% stock dividend. No. Account Titles and Explanation Debit Credit (a) (b) (To record the declaration) (To record the distribution)The common stock of Bramble Inc. is currently selling at $130 per share. The directors wish to reduce the share price and increase share volume prior to a new issue. The per share par value is $10; book value is $69 per share.9 million shares are issued and outstanding. Prepare the necessary journal entries assuming the following. (List all debit entries before credit entries. Enter amounts in dollars. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) a. b. No. Account Titles and Explanation a. The board votes a 2-for-1 stock split. The board votes a 100% stock dividend. b. (To record the declaration). (To record the distribution). Debit CreditThe common stock of Monty Inc. is currently selling at $126 per share. The directors wish to reduce the share price and increase share volume prior to a new issue. The per share par value is $10; book value is $69 per share. 8.60 million shares are issued and outstanding. Prepare the necessary journal entries assuming the following. (Enter amounts in dollars. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) (a) The board votes a 2-for-1 stock split. (b) The board votes a 100% stock dividend. No. Account Titles and Explanation (a) Retained Earnings (b) Common Stock Dividend Distributable Retained Earnings H Common Stock Dividend Distributable Debit Credit
- The common stock of Bridgeport Inc. is currently selling at $121 per share. The directors wish to reduce the share price and increase share volume prior to a new issue. The per share par value is $10; book value is $69 per share. 8.00 million shares are issued and outstanding.Prepare the necessary journal entries assuming the following. (Enter amounts in dollars. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) (a) The board votes a 2-for-1 stock split. (b) The board votes a 100% stock dividend. No. Account Titles and Explanation Debit Credit (a) (b) (To record the declaration) (To record the distributionThe common stock of Teal Inc. is currently selling at $130 per share. The directors wish to reduce the share price and increase share volume prior to a new issue. The per share par value is $10; book value is $69 per share. 9.40 million shares are issued and outstanding. Prepare the necessary journal entries assuming the following. (Enter amounts in dollars. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) (a) The board votes a 2-for-1 stock split. (b) The board votes a 100% stock dividend. No. Account Titles and Explanation Debit Credit (a) (b) (To record the declaration) (To record the distribution)Rainbow Berhad required funds for a feasible project which will be beneficial to both the company and its shareholders. Instead of issuing loan notes, the funding was to be through a share issue. The public was than invited to subscribe to 40,000 ordinary shares of Rainbow Berhad on the 24 January 2021. The full price of the share was RM12 each. The board of directors decided that on application RM4.50 should be paid on application, and then the applicants should pay the allotment of RM2.50 one week after the allotment. The balance of the share money will be on one call.On the 25 February 2021, application closed with the issue oversubscribed by 8,000 shares, and share issue cost was paid amounted to RM1,500. On 8 March 2021, the directors allotted the shares, and it was decided that the shares are to be allotted on a pro- rata basis. Any excess of the application money will be held by the company as part of the allotment. On 15 March 2021, all the allotment money was received.On the…
- Hanley Limited manufactures products that capture solar energy. The company plans to list its shares on the Venture Exchange. To do so, it must meet all of the following initial listing requirements (among others): Net tangible assets must be at least $500,000. Pre-tax earnings must be $50,000. The company must have adequate working capital. Hanley has experienced significant growth in sales and is having difficulty estimating its bad debt expense. During the year, the sales team has been extending credit more aggressively in order to increase their commission compensation. Under the percentage-of-receivables approach using past percentages, the estimate is $50,000. Hanley has performed an aging and estimates the bad debts at $57,000. Finally, using a percentage of sales, the expense is estimated at $67,000. Before booking the allowance, net tangible assets are approximately $550,000. The controller decides to accrue $50,000, which results in pre-tax earnings of $60,000.…The management of Blanche Inc. controls 58% of the company’s stock. The firm did not meet any of its quarterly sales projections for the last year. Some of the firm’s institutional investors are worried that the firm’s poor performance is partly because management has not been focused on maximizing shareholder wealth. Which of the following measures would the institutional investors most likely want to see implemented? They would want to make sure the company has a restricted voting rights provision. They would want to make sure the company’s charter contains a shareholder rights provision. They would want the company to ban targeted share repurchases.Wellington Jumbo Prawn Corp. is a seafood company that exports high-quality prawns to North American Market. The company's CFO announced on June 1st that it would pay a dividend of $1.20 per share on July 15th to all holders. The dividend tax rate for all investors is 20 percent, and no capital gain tax applies. The firm's stock price is $42 a share today. Tomorrow is the ex- dividend date. Holding all else constant, what would you expect the stock price to be tomorrow? OA. $40.80 OB. $41.04 OC. $42.94 OD. $43.20
- Kapiti Jumbo Prawn Corp. is a seafood company that exports high-quality prawns to North American Market. The company's CFO announced on June 1st that it would pay a dividend of $1.20 per share on July 15th to all holders. The dividend tax rate for all investors is 20 percent, and no capital gain tax applies. The firm's stock price is $32 a share today. Tomorrow is the ex-dividend date. Holding all else constant, what would you expect the stock price to be tomorrow? O $32.94 O $33.20 $31.04 $30.80Tempo limited is a subsidiary of a Turkish company which manufactures household utensils .The company which is unlevered is currently financed by four million ordinary shares of GHS10.00 each par value. The shares have a market value of GHS13.50 per share, No debt finance has been used by the company. At a recent emergency board meeting to discuss the way forward as a results of the negative impact of the COVID 19 pandemic on the performance of the company, the Group manager of the company who was present told the shareholders that the company is planning to undertake a massive project expansion next year and suggested that the proposed project will be financed entirely by fixed interest debt, He proposed that, the project be financed by GHS5, 000,000 irredeemable debentures to be issued at par. At a subsequent meeting with company’s Directors and management, the finance director indicated that it is only possible to obtain debt finance equal to the entire cost of the project as the…Kapiti Jumbo Prawn Corp. is a seafood company that exports high-quality prawns to North American Market. The company’s CFO announced on June 1st that it would pay a dividend of $1.20 per share on July 15th to all holders. The dividend tax rate for all investors is 20 percent, and no capital gain tax applies. The firm's stock price is $32 a share today. Tomorrow is the ex-dividend date. Holding all else constant, what would you expect the stock price to be tomorrow? Group of answer choices $33.20 $31.04 $30.80 $32.94