Monty Inc. has 5,400,000 shares of common stock issued and outstanding. On April 1, the board of directors voted a 70 cents per share cash dividend to stockholders of record as of April 14, payable April 21.     Prepare the journal entry for each of the dates above assuming the dividend represents a distribution of earnings.   How would the entry differ if the dividend were a liquidating dividend?

Q: On January 5, the Daisy Corporation issued 15,000 shares of $50 par, 7% Preferred Stock at $53 per…

A: Dividend distribution is a method of distributing profit among the stockholder of the organization.…

Q: Ahnberg corporation had 760,000 shares of common stock and issued and outstanding at january 1. no…

A: Earnings per share (EPS):   The amount of net income available to each shareholder per common share…

Q: Wildhorse Corporation has 12.00 million shares of common stock issued and outstanding. On June 1,…

A: On june ,all majority of BOD approves dividend, so dividend is payable.

Q: Crane Corporation has 12.50 million shares of common stock issued and outstanding. On June 1, the…

A: Entries to record dividend, if the dividend represents a distribution of earnings.

Q: AUBURN Corporation had 120,000 of ordinary shares issued and outstanding at January 1, 2021. On…

A: Formula: Basic earnings per share = Net income available to Ordinary shareholders / No. of Ordinary…

Q: Howard Corporation had 10,000 shares of common stock outstanding at the beginning of the year. On…

A:

Q: Howard Corporation had 10,000 shares of common stock outstanding at the beginning of the year. On…

A: During the year number of shares outstanding are not same. Due to purchase or sale of shares. To…

Q: Dazzle Corporation has provided the following information related to the current year ended December…

A: Earning per share represents the net earnings held in hands of the outstanding shares of the…

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: Greenwood Corporation has 80,000 shares of common stock outstanding. It declares a $1 per share cash…

A: Cash dividends are cash distributions of accumulated earnings by a corporation to its stockholders.…

Q: On June 30, Sharper Corporation’s stockholders’ equity section of its balance sheet appears as…

A: Share outstanding after the stock dividend is 75,000 shares.

Q: Axle Corporation had 800,000 shares of common stock issued and outstanding at January 1. No commons…

A: Diluted Earning Per Share: The diluted earnings per share (diluted EPS) of a corporation is…

Q: Netpass Company has 300,000 shares of common stock authorized, 270,000 shares issued, and100,000…

A: Outstanding shares = Issued shares - Treasury shares                                  = 270,000…

Q: Knapp Industries began business on January 1, 2018 by issuing all of its 1,850,000 authorized shares…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: Howard corporation had 10,000 shares of common stock outstanding at the beginning of the year. On…

A: Weighted average number of shares is the total number of outstanding shares calculated at the end of…

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: The annual report for Sneer Corporation disclosed that the company declared and paid preferred…

A: Debit Credit   Dividends declared $         160,000     Dividends Payable   $      160,000…

Q: Knapp Industries began business on January 1, 2018 by issuing all of its 1,600,000 authorized shares…

A: Treasury shares has debit account balance. It would be deducted to determine the stockholders'…

Q: Trans Union Corporation issued 5,000 shares for $50 per share in the current year, and it…

A:

Q: The annual report for Sneer Corporation disclosed that the company declared and paid…

A: 1.

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: 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: The annual report for Sneer Corporation disclosed that the company declared and paid preferred…

A: Dividend: It is the distribution of profit earned by a company its common stock shareholders. In…

Q: Lucky Corporation began the year with a simple capital structure consisting of 200,000 shares of…

A: Formula: Earnings per share = Net income / Weighted average number of equity shares

Q: Saturn Corporation has 19,000 shares of 10%, $76 par noncumulative preferred stock outstanding and…

A: Dividend is defined as the distribution of some of the earnings of the company to the class of its…

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: a. Prepare all of the necessary journal entries to record the events described above.b. Prepare the…

A: Requirement a:   Pass all of the necessary journal entries to record the events.

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: Ahnberg Corporation had 520,000 shares of common stock issued and outstanding at January 1. No…

A: Definition:   Earnings per share (EPS): The amount of net income available to each shareholder per…

Q: Almond, Inc held its quarterly dividend meeting on December 8.  At that time, the directors declared…

A: Dividend payable = No. of shares * Dividend per share

Q: AUBURN Corporation had 120,000 of ordinary shares issued and January 2 of the same year, the company…

A: Earnings per share represent the earnings held in hands of each shareholder of the company. It is…

Q: Show

A:

Q: A year-end balance sheet includes the following information for Owners' Equity: Common stock…

A: Given that, common shares issued = 100000 shares Common stcok = $50000 Additional paid in capital =…

Q: (a) On January 31, the board of directors issues a requirement to purchase 5,000 shares of its…

A: Particulars Debit Credit a       Jan 31 Treasury Stock 110000             Cash   (5000*22)…

Q: On April 1, Blue Devil Inc. has 300,000 shares of $20 par value common stock that are issued and…

A: a. Shares of common stock are issued and outstanding immediately following the stock split: = Common…

Q: Green Planet Corp. has (a) 5,600 shares of cumulative 11% preferred stock with a $2 par value and…

A: Cash dividends:   The amount of cash provided by a corporation out of its distributable profits to…

Q: Alpha Corporation has 25 million shares of common stock issued and outstanding. On August 31 the…

A: Payment of dividend out of profits indicate that the dividends are distributed out of retained…

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: Milo Co. had 800,000 shares of common stock outstanding on January 1, issued 126,000 shares on May…

A: Basic earnings per share = (Net income - Preferred dividend) / Weighted average no. of common shares…

Q: Court Casuals has 300,000 shares of common stock outstanding as of the beginning of the year and has…

A: Treasury shares are those shares which are being reacquired or repurchased by business from its…

Q: The annual report for Sneer Corporation disclosed that the company declared and paid preferred…

A: 1) Date Account Journal  Debit $ Credit $ 1 Dividend - Preferred stock 280,000     Dividends…

Q: Nutritious Pet Food Company’s board of directors declares a cash dividend of $1.00 per common share…

A: A journal entry is the recording of financial transactions of business entity in the books of…

Q: Mai Corporation was organized on January 1, 2016, During its first year, the corporation issued…

A: Dividend distribution is a method of distributing profit among the stockholder of the organization.…

Q: On September 1, Ziegler Corporation had 56,000 shares of $5 par value common stock, and $168,000 of…

A: The facts mentioned in the question are as follows: Ziegler Corp has 56,000 shares at $5 par value…

Q: Milo Co. had 795,000 shares of common stock outstanding as of January 1. On May 1, they issued…

A: Firstly, we shall calculate the Shares that were outstanding during the year and the Months for…

Q: On September 1, Reedy Company has 500,000 shares of $30 par value ($330 market value) common stock…

A: Stock splits: Stock split means dividing single stock into multiple number of shares. Under stock…

Q: Darren Company had 600,000 ordinary shares outstanding on January 1, issued 120,000 shares on May 1,…

A: Weighted average number of shares outstanding is the sum of all outstanding shares multiplied by the…

Q: Sweet Company’s outstanding stock consists of 1,700 shares of noncumulative 4% preferred stock with…

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

Q: Nutritious Pet Food Company’s board of directors declares a cash dividend of $1.00 per common share…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

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.