Define Stock Dividends and Stock Splits.

Q: Cash Dividends on Common Stock

A: Shares purchased as Treasury stock is not outstanding.  So , no Dividend is declared on shares…

Q: Explain the different types of preferred stock dividends and their effect on book value per share.

A: Preferred stock: Preferred stock have a preference to receive dividend than before any common…

Q: Define common stock.

A: Stock: It refers to a security issued in a form of certificate. It implies the right of ownership of…

Q: Corporations and type of stock Compare and contrast common stock and preferred stock.

A: A corporation is a legal entity that's separate from the owners of the company. One firm fancies…

Q: Compare and contrast features characteristic of preferred stock(preference shares ) and common…

A: Shareholder’s equity:   Shareholder’s equity is the difference between the total assets and the…

Q: Describe the accounting entry for a stock dividend, if any.Describe the accounting entry for a stock…

A: Stock dividend declaration has two type. Declaration of stock dividend more than 30% represents…

Q: What is the amount of retained earnings transferred to paid-in capital accounts (capitalized) for…

A: Solution:- Given, Common stock from 1,00,000 shares authorized 40,000 shares issued on Stockholder's…

Q: Stock Split

A: Stock split is a situation where a particular number of shares are offered for each share held of…

Q: What is the difference between the accounting for a small stock dividend and the accounting for a…

A: Stock Dividends:Stock dividend represents the declaration and distribution of dividend to its…

Q: Describe related stockholders’ equity statements.

A: Stockholders’ equity statement: This statement shows the changes made in the stockholders’ equity…

Q: Define stock dividend.

A:

Q: What is the number of shares outstanding?

A: The shares which are outstanding is the shares which has been in the market which means those shares…

Q: Discuss the similarities in dividends, share repurchases, and stock splits/stock dividends.

A: Stock Dividend: Dividend payments to shareholders provided in the form of stock rather than cash are…

Q: Explain how Stock Splits Effected in the Form of Stock Dividends.

A:

Q: How do you journalize entries for stock dividends?

A: Stock dividend is a method of capitalizing the profits, It can be issued by debiting retained…

Q: What is the difference between a stock split and a stock split effected in the form of a stock…

A: Stock split: It is the way of reducing the value of a share by split one share into multiple shares.…

Q: What is the difference between a stock split and a stock split effected in the form of a stock…

A: Stock split is an events that increase the outstanding shares and reduce the stated par value. For…

Q: Compute the book value per share of the common stock.

A:

Q: Discuss the conceptual basis for accounting for a share buyback as treasury stock.

A: Treasury Stock: It refers to the shares that are reacquired by the corporation that are already…

Q: When calculating the weighted average number of common shares, how are stock dividends and stock…

A:

Q: What is a stock dividend?  How does a common stock dividend distributed to common stockholders…

A: When dividend is issued to stockholders in form of stock instead of cash then it is called as Stock…

Q: State the difference between common stock and preferred stock.

A: Shareholders' fund consist of two types of stock namely common stock and preferred stock. Both…

Q: What is the purpose of a stock dividend or stock split? How does a stock split impact a company's…

A: A stock dividend is a dividend payment that is made in shares to its shareholders instead of cash…

Q: Differentiate the effect on EPS of the sale of new shares, a stock dividend or stock split, and the…

A: Earning per share is computed by dividing the earnings available to the common/equity stock holders…

Q: A. Calculate the dividends paid to the preferred stockholders. B. Calculate the dividends paid to…

A: A. $120,000 B. $30,000

Q: How does declaring a stock dividend affect the corporation's assets, liabilities, and total equity?

A: Company means a form of business where the share holder invest money in business in form of shares…

Q: How will you distinguish a small from large share capital (stock) dividend?

A: Dividend is the share or part of profits that is being distributable to the shareholders of the…

Q: Explain Stockholders’ Rights.

A: The rights are explained as,

Q: Which of the following is least likely to affect the retained earnings? * Stock Splits O Treasury…

A: Date Accounts Debit Credit   Retained earnings xxxx            Stock dividend payable   xxxx…

Q: Distinguish the differences between stock splits and stock dividends.

A: Dividends are the profits of the company which is distributed among the shareholders of the company.…

Q: Define the term Large Stock Dividends.

A: Dividend:   It is a distribution of profits by a corporation to their shareholders. When a company…

Q: Compare and Contrast the relationship of the number of shares to the dividend the stockholder may…

A: The profits of the company distributed among the equity and preference stockholders of the company…

Q: Stock Dividends Distributable is classified on the balance sheet as a(n)(a) asset.(b) liability.(c)…

A: Stock Dividend is a dividend paid to shareholders in the form of additional shares in the company…

Q: Define each of the following terms: g. Stock split; stock dividend; stock repurchase

A: Stocks is a security also called as equity, holds the ownership of corporation.

Q: Write down the reasons for stock dividend.

A: Dividends: This is the amount of cash distributed to stockholders by a company out its earnings,…

Q: value a share of common stock.

A: Common stock is the ordinary shares issued by the company. It shows the equity that offers the share…

Q: Explain stock dividends and stock splits and how we account for them.

A: Stock dividends: Stock dividends involve the issuance of additional shares of stock to existing…

Q: Contrast the features of common stock with those of preferred stock.

A: Common stocks will be outlined as securities that represent individuals’ ownership during a said…

Q: Distinguish between accounting for retired shares and for treasury shares.

A: Retire stock: Buy back of shares from the shareholders by paying cash and obtaining the status of…

Q: Define outstanding stock.

A: Outstanding Stock is the stock which is currently outstanding and held by the shareholders of the…

Q: Define value of preferred stock

A: Preferred stock is a kind of stock considered as a hybrid instrument as it includes features of both…

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.