Cambridge Business PublishersChapter 11Stockholders' EquityO Ca3. Kate also wishes to pay dividends on both her common shares and the preferred stock. She isExplain the difference between a cash dividend and a stock dividend. Since Kate is the only stockholder of the common stock, what would be the effect of issuing a 10 percent stock dividend?4. Kate decides to issue cash dividends on both the common stock and the preferred stock. Currentlythere are 50 outstanding preferred shares and 500 common shares outstanding. The dividends thaKate paid were $6 per share on the preferred shares and $2 per share on the common shares.a little confused between cash and stock dividends.Provide the journal entry for the payment of the cash dividends.5. Kate's Cards has a net income of $1,500 for the current month of August 2019. Kate had decidedthat the business will have a fiscal year-end of August 31, so this is the completion of the com-pany's first year. Kate will be preparing her annual financial statements; however, she wouldlike to see a monthly statement of retained earnings for August 2019. In addition, she woto see how the stockholders'equity section of the balance sheet will look after the addition of thepreferred stock. The stockholders' equity section from July 2019 is shown below:Stockholders' EquityCommon stock (5,000 shares authorized, 500 shares issued and outstanding)Paid-in capital in excess of par value-common stock.Retained earnings$ 5009,50015,000$25,000Total stockholders' equity. .Prepare a statement of retained earnings for the month of August 2019 and the stockholdersequity section of the balance sheet as of August 31, 2019.

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Asked Oct 10, 2019
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Cambridge Business Publishers
Chapter 11
Stockholders' Equity
O Ca
3. Kate also wishes to pay dividends on both her common shares and the preferred stock. She is
Explain the difference between a cash dividend and a stock dividend. Since Kate is the only stock
holder of the common stock, what would be the effect of issuing a 10 percent stock dividend?
4. Kate decides to issue cash dividends on both the common stock and the preferred stock. Currently
there are 50 outstanding preferred shares and 500 common shares outstanding. The dividends tha
Kate paid were $6 per share on the preferred shares and $2 per share on the common shares.
a little confused between cash and stock dividends.
Provide the journal entry for the payment of the cash dividends.
5. Kate's Cards has a net income of $1,500 for the current month of August 2019. Kate had decided
that the business will have a fiscal year-end of August 31, so this is the completion of the com-
pany's first year. Kate will be preparing her annual financial statements; however, she would
like to see a monthly statement of retained earnings for August 2019. In addition, she wo
to see how the stockholders'equity section of the balance sheet will look after the addition of the
preferred stock. The stockholders' equity section from July 2019 is shown below:
Stockholders' Equity
Common stock (5,000 shares authorized, 500 shares issued and outstanding)
Paid-in capital in excess of par value-common stock.
Retained earnings
$ 500
9,500
15,000
$25,000
Total stockholders' equity. .
Prepare a statement of retained earnings for the month of August 2019 and the stockholders
equity section of the balance sheet as of August 31, 2019.
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Cambridge Business Publishers Chapter 11 Stockholders' Equity O Ca 3. Kate also wishes to pay dividends on both her common shares and the preferred stock. She is Explain the difference between a cash dividend and a stock dividend. Since Kate is the only stock holder of the common stock, what would be the effect of issuing a 10 percent stock dividend? 4. Kate decides to issue cash dividends on both the common stock and the preferred stock. Currently there are 50 outstanding preferred shares and 500 common shares outstanding. The dividends tha Kate paid were $6 per share on the preferred shares and $2 per share on the common shares. a little confused between cash and stock dividends. Provide the journal entry for the payment of the cash dividends. 5. Kate's Cards has a net income of $1,500 for the current month of August 2019. Kate had decided that the business will have a fiscal year-end of August 31, so this is the completion of the com- pany's first year. Kate will be preparing her annual financial statements; however, she would like to see a monthly statement of retained earnings for August 2019. In addition, she wo to see how the stockholders'equity section of the balance sheet will look after the addition of the preferred stock. The stockholders' equity section from July 2019 is shown below: Stockholders' Equity Common stock (5,000 shares authorized, 500 shares issued and outstanding) Paid-in capital in excess of par value-common stock. Retained earnings $ 500 9,500 15,000 $25,000 Total stockholders' equity. . Prepare a statement of retained earnings for the month of August 2019 and the stockholders equity section of the balance sheet as of August 31, 2019.

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Expert Answer

Step 1

As per authoring guidelines the first question is answered. Please repost the question specifying question number for answers.

Step 2

Dividend: Dividend is a part of income paid to shareholders of an organization for the investment made in shares of the organization. Dividends are paid to equity shareholders after dividend is paid for preferred stock holders.

Step 3

Difference between cash dividend and stock di...

Cash dividend
Stock dividend
Dividend that is paid in cash is Dividend that is paid by way of
stock is called stock dividend
Stock dividend is paid as a
percentage on number of
called cash dividend
Cash dividend is paid on per
share basis
outstanding shares
Stock dividend reduces the
retained earnings balance and
Cash dividend paid reduces the increases the common stock
retained earnings balance
Cash dividend is paid if
companies have excess cash
In this case investor has a
balance
Stock dividend is paid if
organization have lack of cash
Cash is not realized in stock
chance to diversify the realized dividends and it is reinvested
the same organization
cash in other investments
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Cash dividend Stock dividend Dividend that is paid in cash is Dividend that is paid by way of stock is called stock dividend Stock dividend is paid as a percentage on number of called cash dividend Cash dividend is paid on per share basis outstanding shares Stock dividend reduces the retained earnings balance and Cash dividend paid reduces the increases the common stock retained earnings balance Cash dividend is paid if companies have excess cash In this case investor has a balance Stock dividend is paid if organization have lack of cash Cash is not realized in stock chance to diversify the realized dividends and it is reinvested the same organization cash in other investments

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