Emma Systems, Inc. declared and issued a 9 percent stock dividend. The company has 720,000 shares authorized and 45,668 outstanding. The par value of the stock is $1.4 per share and the market value is $6 per share. To record the stock dividend, the debit to Retained Earnings would be $

Emma Systems, Inc. declared and issued a 9 percent stock dividend. The company has 720,000 shares authorized and 45,668 outstanding. The par value of the stock is $1.4 per share and the market value is $6 per share. To record the stock dividend, the debit to Retained Earnings would be $

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 73E: Preferred Dividends Eastern Inc.s equity includes 8%, $25 par preferred stock. There are 100,000...

See similar textbooks

Related questions

Q: Beta Co. sold 10,000 shares of common stock, which has a par value of $25, for $27 per share.The…

A: Stockholders' equity section of a balance sheet includes paid in capital and retained earnings.

Q: July 3, 20x2, Yami issued 150,000 of its ordinary shares for P1,950,000. A 5% share dividend was…

A: Solution: Working: Date Particulars Ordinary Share (P) paid in capital of excess of par retained…

Q: Express, Inc., has a total of 80,000 shares of common stock outstanding and no preferred stock.Total…

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

Q: ow many share would be outstanding after a 2:1 stock split

A: A stock split is when a company divides the existing shares of its stock into multiple new shares.…

Q: On December 31, 2022, Voice Company had 500,000 ordinary shares issued and outstanding, 400,000 of…

A: SOLUTION- COMPUTATION OF WEIGHTED AVERAGE NUMBER OF SHARES - DATE NUMBER OF SHARES MONTHS…

Q: Kelley Company reports $960,000 of net Income and declares \$120,000 of cash dividends on its…

A: Earnings per share refer to the amount earned by each stockholder. This can be identified by…

Q: Perez Corporation was organized on January 1, 2009. During its first year, the corporation issued…

A: A dividend is the distribution of some of a company's earnings to a class of its shareholders, as…

Q: Diaz Corporation, a distributor of exercise equipment, has the following outstanding shares: 18,000…

A: Dividend per share is computed by dividing the total dividends by the number of shares outstanding.

Q: Netpass Company has 100,000 shares of common stock authorized, 90,000 shares issued, and 40,000…

A: No. of shares issued and outstanding = No. of common stock issued - treasury stock = 90000 shares -…

Q: Wookie Inc. has the following shareholders equity information at the beginning of the year: 1000…

A: Given: 1,000 shares-$5 par value, issued and outstanding $ 5,000 Stock Split 2:1…

Q: The company with the common equity accounts shown here has declared a 15 percent stock dividend when…

A: First, we need to calculate the new number of shares outstanding by multiplying the current shares…

Q: Raedy Corporation reported the following equity section on its current balance sheet. The common…

A: Stock-spilt means an issue of new shares to the existing shareholders of the company. A 2 for 1…

Q: DY Corporation declared the regular quarterly dividend of P2 per share. It had issued12,000 shares…

A: Shares outstanding = Shares issued - Treasury stock shares Shares outstanding = 12,000 - 2,000…

Q: Fischer Company has outstanding 8,000 shares of $100 par value, 5% preferred stock, and 50,000…

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

Q: On January 1, 2022, Splish Brothers Inc. had $1,320,000 of common stock outstanding that was issued…

A: Definition: Dividends: Dividends are the rewards to the stockholders for investing their money in…

Q: During May 1, 20x1, Yami Inc. issued 90,000 of its P10 par value ordinary shares for P1,080,000. Net…

A: 1) Journal Entries Date Particulars No of share Debit Credit Retained Earning May-20x1 Bank…

Q: At the time that Kirby Company issued a 3-for-1 stock split, the company had 1,000 shares of $12 par…

A: 3-for-1 stock split indicates the each one stock, divided into three smaller stock.

Q: Pickens Corporation declares and issues a 10% stock dividend. On the date of declaration, the stock…

A: Journal Entry Account Titles and Explanation Debit Credit Retained Earnings $…

Q: Lightfoot Inc., a software development firm, has stock outstanding as follows: 30,000 shares of…

A: Calculation of total dividend distributed to preference shareholders Year 1 = 30,000 preference…

Q: Quickbux Co. issued and sold 1,000 shares of common stock, with a par value of $5, for $12 per…

A: Shareholders' equity includes common stock, preferred stock, paid-in capital in excess of par, and…

Q: Green Planet Corp. has (a) 5,800 shares of noncumulative 12% preferred stock with a $2 par value and…

A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…

Q: Netpass Company has 600,000 shares of common stock authorized, 510,000 shares issued, and 240,000…

A: Dividend is paid on the shares outstanding. Shares outstanding = Shares issued - Treasury shares…

Q: Lightfoot Inc., a software development firm, has stock outstanding as follows: 25,000 shares of…

A: Introduction share capital is a fund or money that is raised by company by issuing shares in stock…

Q: The board of directors of Capstone Inc. declared a $0.60 per share cash dividend on its $1 par…

A: Dividend is the disbursement of profit in consideration to the shares purchased by the shareholders.

Q: Gordon Corporation reported the following equity section on its current balance sheet. The common…

A: Stock Dividends is a type of dividends that issued to Shareholders in terms of Shares.

Q: Eastline Corporation had 11,000 shares of $10 par value common stock outstanding when the board of…

A: Large stock dividend, A stock dividend is considered to be large if the new shares being issued are…

Q: On January 1 2018, ACI Ltd. had 5,80,000 shares of common stock outstanding . During 2018, it had…

A: Earnings per share is a financial ratio that indicates a company’s ability to earn revenue for its…

Q: Ridgetown Corporation started the year with 50,000 common shares outstanding. On April 1st,…

A: • Weighted average number of common shares from January to March: For opening balance = 50,000×3/12…

Q: Weil Corporation has 80,000 shares of $8 par value common stock outstanding. Complete the following…

A: The stock dividend increases the number of outstanding shares and decreases the balance of retained…

Q: Huxley Company has 119,526 shares of common stock authorized, 158,963 issued, and 79,891 shares of…

A: No. of shares issued and outstanding = No. of shares issued - No. of treasury stock = 158963-79891 =…

Q: Kingbird Corporation had 270,000 shares of common stock outstanding on January 1, 2017. On May 1,…

Q: Kosmier Company has outstanding 500,000 shares of $50 par value common stock that originallysold for…

A: Given information is: Kosmier Company has outstanding 500,000 shares of $50 par value common stock…

Q: At the beginning of the current year, BFAR Corp. was authorized to issue 100,000 shares with P50 par…

A: The retained earnings increases with revenue and decreases with losses during the period. The…

Q: Hill Corp. had 600,000 shares of common stock outstanding on January 1, issued 900,000 shares on…

A: Earnings per share is used to measure income earned per share. Earnings per share is equal to…

Q: Gordon Corporation reported the following equity section on its current balance sheet. The common…

A: A Stock Dividend is the payment of dividends in the forms of shares of the company. There are 2…

Q: The net income of Charles Company for the year ended December 31, 2002 was $100,000. The following…

A: The question is related to Earnings per share. The Basic earnings per share is calculated with the…

Q: Kurt's Market has 16,000 shares of stock outstanding with a par value of $1 per share and a market…

A: Given information : Par value of stock = $1 Market value of stock = $17 Balance of common stock =…

Q: At the beginning of the current year, Ace Company declared 10% stock dividend. The market price of…

A: The capital of the company can be raised by issuing the shares, bonds, debentures, etc., These are…

Q: Field Company's stockholders' equity account balances at December 31, 2006, were as follows: Common…

A: Total stockholders equity in the business means total amount attributable to the shareholders of the…

Q: On December 31, 2012, the stockholders' equity section of Arndt, Inc., was as follows: Common stock,…

A: Amount debited to retained earnings for stock dividend = fair value of the stock x no. of shares…

Q: Ramos Corporation reported the following equity section on its current balance sheet. The common…

A: Stock dividend is the form of dividend distribution in which additional stock are issued by the…

Q: Triad declared and paid a P25,000 cash dividend on December 15, 2008. If the company's dividends in…

A: Dividend paid = P25,000 Arrears = P6,000 Dividend of this year = P19,000

Q: At the end of the accounting period, Houston Company had $8,000 of par value common stock issued,…

A: Stockholders equity include common stock, retained earning but does not include treasury stock.

Q: On January 1, 2010, Deweese Corporation had $1,000,000 of common stock outstanding that was issued…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: Trans Union Corporation issued 5,200 shares for $50 per share in the current year, and it issued…

A: When shares are sold or issued , cash account will be debited which increases the total assets and…

Q: Green Planet Corp. has 5,000 shares of noncumulative 10% preferred stock with a $2 par value and…

A: Calculate the annual dividend for preferred shareholders. Dividend to Preferred shareholders =…

Q: On January 1, 2010, the accounts of Mac Corporation showed the following: Common stock, par SI,…

A: The stockholders equity section of the balance sheet is as follows:

Q: On January 1, 2007, Part Corporation had issued and outstanding 10,000 shares of P10 par common…

A: The dividend can be paid in cash form or shares form. The stock dividend less than 25% is issued at…

Q: Gordon Corporation reported the following equity section on its current balance sheet. The common…

A: If dividend is issued in form of stock instead of cash then such dividend is called as Stock…

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Entries for stock dividends Alpine Energy Corporation has 1,500,000 shares of 40 par common stock outstanding. On August 2, Alpine Energy declared a 4% stock dividend to be issued October 8 to stockholders of record on September 15. The market price of the stock was 70 per share on August 2. Journalize the entries required on August 2, September 15, and October 8.
COMMON AND PREFERRED CASH DIVIDENDS Ramirez Company currently has 100,000 shares of 1 par common stock outstanding and 5,000 shares of 50 par preferred stock outstanding. On July 10, the board of directors declared a semiannual dividend of 0.30 per share on common stock to shareholders of record on August 1, payable on August 5. On July 15, the board of directors declared a semiannual dividend of 5 per share on preferred stock to shareholders of record on August 5, payable on August 10. Prepare journal entries for the declaration and payment of the common and preferred stock cash dividends.
Preferred Dividends Eastern Inc.s equity includes 8%, $25 par preferred stock. There are 100,000 shares authorized and 45,000 shares outstanding. Assume that Eastern declares and pays preferred dividends quarterly. Required: Prepare the journal entry to record declaration of one quarterly dividend. Prepare the journal entry to record payment of the one quarterly dividend.
STOCK DIVIDENDS Martinez Company currently has 200,000 shares of 1 par common stock outstanding. On March 15, a 5% stock dividend was declared to shareholders of record on April 2, distributable on April 14. Market value of the common stock was estimated at 13 per share. 1. Prepare journal entries for the declaration and distribution of the 5% common stock dividend. 2. Assume Martinez Company declared a stock dividend of 30% rather than 5%. Prepare journal entries for the declaration and distribution of the 30% common stock dividend.
Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 20 par common stock at 30, receiving cash. b. Issued 4, 000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 37 5. The bonds are classified as a held-to-maturity long -term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0 .60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 45, including commission. p. Recorded the payment of semiannual interest on the bonds issue d in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method . q. Accrued interest for three months on the Dream Inc. bonds purchased in (I). r. Pinkberry Co. recorded total earnings of 240 ,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39. 02 per share on December 31, 2016. The investment is adjusted to fair value , using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments h ad a beginning balance of zero. Instructions 1. Journalize the selected transactions. 2. After all of the transaction s for the year ended December 31, 201 6, had been poste d [including the transactions recorded in part (1) and all adjusting entries), the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step in come statement for the year ended December 31, 201 6, concluding with earnings per share . In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. ( Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 20 6. c. Prepare a balance sheet in report form as of December 31, 2016.