Garber Corporation had 56,000 shares of $14 par common stock outstanding on January 1, Year 1. On June 1, Year 1 Garber purchased6,900 shares of its own stock on the open market for $24 per share and held it as treasury stock. On October 1, Year 1 Garber declaredand issued a 10% stock dividend. The market value of Garber's stock was $26 per share on October 1. Garber's board of directorsdeclared and paid a cash dividend of $58,600 on December 15, Year 1.Required:a. Show how the purchase of the treasury stock affects the financial statements.b. Show how the issuance of the stock dividend affects each element of the financial statements.c. Show how the declaration and payment of the cash dividend affect the financial statements.d. What was the per share cash dividend paid on December 15?Complete this question by entering your answers in the tabs below.Required A Required B Required C Required DShow how the purchase of the treasury stock affects the financial statements.Note: Enter any decreases to account balances and cash outflows with a minus sign. For cash flows, indicate whether each is an operating activity (OA), inve(IA), or financing activity (FA). Leave cells blank if no input is needed.AssetsBalance SheetLiabilitiesStockholders'EquityRevenuesIncome StatementExpenses< Required ANet IncomeRequired B >Statement ofCash Flows Garber Corporation had 56,000 shares of $14 par common stock outstanding on January 1, Year 1. On June 1, Year 1 Garber purchased6,900 shares of its own stock on the open market for $24 per share and held it as treasury stock. On October 1, Year 1 Garber declaredand issued a 10% stock dividend. The market value of Garber's stock was $26 per share on October 1. Garber's board of directorsdeclared and paid a cash dividend of $58,600 on December 15, Year 1.Required:a. Show how the purchase of the treasury stock affects the financial statements.b. Show how the issuance of the stock dividend affects each element of the financial statements.c. Show how the declaration and payment of the cash dividend affect the financial statements.d. What was the per share cash dividend paid on December 15?Complete this question by entering your answers in the tabs below.Required A Required BRequired CAssetsShow how the issuance of the stock dividend affects each element of the financial statements.Note: Enter any decreases to account balances and cash outflows with a minus sign. For cash flows, indicate whether each is an operating activity (OA), inve(IA), or financing activity (FA). Leave cells blank if no input is needed.Required DBalance SheetLiabilitiesStockholders'EquityRevenuesIncome StatementExpenses< Required ANet IncomeRequired C >Statement ofCash Flows

Stockholders’ equity refers to the ownership interest in the business. It is the claim of the owners…

Garber Corporation had 56,000 shares of $14 par common stock outstanding on January 1, Year 1. On June 1, Year 1 Garber purchased 6,900 shares of its own stock on the open market for $24 per share and held it as treasury stock. On October 1, Year 1 Garber declared and issued a 10% stock dividend. The market value of Garber's stock was $26 per share on October 1. Garber's board of directors declared and paid a cash dividend of $58,600 on December 15, Year 1.

Garber Corporation had 56,000 shares of $14 par common stock outstanding on January 1, Year 1. On June 1, Year 1 Garber purchased 6,900 shares of its own stock on the open market for $24 per share and held it as treasury stock. On October 1, Year 1 Garber declared and issued a 10% stock dividend. The market value of Garber's stock was $26 per share on October 1. Garber's board of directors declared and paid a cash dividend of $58,600 on December 15, Year 1.

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter12: Statement Of Stockholders’ Equity (stockeq)

Section: Chapter Questions

Problem 1R: Chen Corporation began 2012 with the following stockholders equity balances: The following selected...

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