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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).According to a company press release, on January 5, 2012, Hansen Natural Corporation changed its name to Monster Beverage Corporation. According to Yahoo Finance, on that day the value of the company stock (symbol: MNST) was $15.64 per share. On January 5, 2018, the stock closed at $63.49 per share. This represents an increase of nearly 306%. A. Discuss the factors that might influence the increase in share price. B. Consider yourself as a potential shareholder. What factors would you consider when deciding whether or not to purchase shares in Monster Beverage Corporation today?Stock Split Suppose you own 2,000 common shares of Laurence Incorporated. The EPS is $10.00, the DPS is $3.00, and the stock sells for $80 per share. Laurence announces a 2-for-1 split. Immediately after the split, how many shares will you have, what will the adjusted EPS and DPS be, and what would you expect the stock price to be?
- Nutritious Pet Food Companys board of directors declares a 2-for-1 stock split on June 30 when the stocks market value per share is $30. At that time, there are 10,000 shares of $1 par value common stock outstanding (none held in treasury). What is the new par value of the shares and how many shares are outstanding after the split? What is the total amount of equity before and after the split?Nutritious Pet Food Companys board of directors declares a 2-for-1 stock split on June 30 when the stocks market value per share is $30. At that time, there are 10,000 shares of $1 par value common stock outstanding (none held in treasury). What is the new par value of the shares and how many shares are outstanding after the split?Written, Inc. has outstanding 500,000 shares of P2 par common stock and 100,000 shares of no-par 8% preferred stock with a stated value of P5. The preferred stock is cumulative and nonparticipating. Dividends have been paid in every year except the past two years and the current year. Assuming that P305,000 will be distributed, and the preferred stock is also participating, how much will the common stockholders receive? 185,000. 150,000. 155,000. 80,000
- Lord Aguilar Corp. plans to declare and distribute a dividend in December 2018. There are 20,000 shares of 7% preference shares, par value P50, and 400,000 outstanding ordinary shares, P1 par value. No dividend was paid in the previous year. 1. What is the total amount of dividends to be paid to ordinary shareholders if preference shares are cumulative and nonparticipating and the dividend declared is P100,000? 2. What is the total amount of dividends to be paid to preference shareholders if it is cumulative and nonparticipating and the dividend declared is P100,000? 3. What is the total amount of dividends to be paid to ordinary shareholders if preference shares are cumulative and nonparticipating and the dividend declared is P168,000?Written, Inc. has outstanding 500,000 shares of P2 par common stock and 100,000 shares of no-par 8% preferred stock with a stated value of P5. The preferred stock is cumulative and nonparticipating. Dividends have been paid in every year except the past two years and the current year. Assuming that P250,000 will be distributed as a dividend in the current year, how much will the common stockholders receive? Zero. 130,000. 170,000. 210,000.Togo Inc. has the following shares outstanding: 40,000, $ 0.80, no par value preferred shares $ 400,000 60,000 no par value common shares $ 600,000 All shares were sold for $ 10 each. No dividends have been declared since December 31, 2017. It is now December 31, 2020, and the board of directors wants to distribute $ 204,000 in dividends. Instructions Calculate how much the preferred and common shareholders will receive under each of the following assumptions: a) The preferred is noncumulative and non-participating. b) The preferred is cumulative and non-participating. c) The preferred is cumulative and fully participating. d) The preferred is cumulative and participating to 12% total.
- 2. ABC Company has the following: Preferred stock, 5%, noncumulative, $100 par, 100,000 shares issued and outstanding 10,000,000 If ABC pays dividends this year, how much will it pay as total dividends for its preferred stock? Group of answer choices 100 500,000 100,000 5 3. ABC Company has 100,000 shares of $5 par value stock issued and outstanding. It declares a 15% stock dividend when the stock is worth $100/share. How will retained earnings change as a result of the stock dividend? Group of answer choices 1,500,000 increase 75,000 decrease 15,000 decrease 1,500,000 decrease 4. ABC Company has 100,000 shares of $5 par value stock issued and outstanding. It declares a 30% stock dividend when the stock is worth $100/share. How will retained earnings change as a result of the stock dividend? Group of answer choices 30,000 decrease 3,000,000 decrease 150,000 increase 150,000 decrease 5. ABC Company has 100,000…GHI Co. has the following shareholders’ equity accounts: 8% Preference Share, P10 par P200,000 Ordinary share, P6 par P300,000, Accumulated Profit P100,000. Dividends have not been declared for 3 years including the current year. On October 1, a cash dividend of P80,000 has been declared by the Board of Directors. Assuming that the preference share is cumulative and fully participating, compute for the dividend per share for preference share (round off to two decimal places).Written, Inc. has outstanding 500,000 shares of P2 par common stock and 100,000 shares of no-par 8% preferred stock with a stated value of P5. The preferred stock is cumulative and nonparticipating. Dividends have been paid in every year except the past two years and the current year. Assuming that P105,000 will be distributed as a dividend in the current year, how much will the preferred stockholders receive? 35,000. 40,000. 80,000. 105,000.
