HM company has 1,000,000 shares of $1 par value capital stock outstanding on January 1. The following equity transaction occurred during the current year. Apr. 30 Distributed additional shares of capital stock in a 2 for 1 stock splits. market price of stock was $35 per share. June 1 Declare a cash dividend of $ 0.60 cash dividend July 1 Paid the $0.60 cash dividend to stockholders. Aug. 1 Declared a 5 percent stock dividend. Market price of stock was $19 per share Sept. 10 Issued share resulting from the 5 percent stock dividend declared on August 1. Prepare journal entries to record these transactions. Compute the number of shares of capital stock outstanding at year-end What is par value per share of HM stock at the end of the year Determine the effect of each of the following on total stockholders’ equity: stock, equity split, declaration and payment of cash dividend, declaration and distribution of stock dividend (could be your answer increase decrease or no effect).
HM company has 1,000,000 shares of $1 par value capital stock outstanding on January 1. The following equity transaction occurred during the current year. Apr. 30 Distributed additional shares of capital stock in a 2 for 1 stock splits. market price of stock was $35 per share. June 1 Declare a cash dividend of $ 0.60 cash dividend July 1 Paid the $0.60 cash dividend to stockholders. Aug. 1 Declared a 5 percent stock dividend. Market price of stock was $19 per share Sept. 10 Issued share resulting from the 5 percent stock dividend declared on August 1. Prepare journal entries to record these transactions. Compute the number of shares of capital stock outstanding at year-end What is par value per share of HM stock at the end of the year Determine the effect of each of the following on total stockholders’ equity: stock, equity split, declaration and payment of cash dividend, declaration and distribution of stock dividend (could be your answer increase decrease or no effect).
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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HM company has 1,000,000 shares of $1 par value capital stock outstanding on January 1. The following equity transaction occurred during the current year.
Apr. 30 Distributed additional shares of capital stock in a 2 for 1 stock splits. market price of stock was $35 per share.
June 1 Declare a cash dividend of $ 0.60 cash dividend
July 1 Paid the $0.60 cash dividend to stockholders.
Aug. 1 Declared a 5 percent stock dividend. Market price of stock was $19 per share
Sept. 10 Issued share resulting from the 5 percent stock dividend declared on August 1.
- Prepare
journal entries to record these transactions. - Compute the number of shares of capital stock outstanding at year-end
- What is par value per share of HM stock at the end of the year
- Determine the effect of each of the following on total
stockholders’ equity: stock, equity split, declaration and payment of cash dividend, declaration and distribution of stock dividend (could be your answer increase decrease or no effect).
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