On October 31, the stockholders’ equity section of Oriole Company’s balance sheet consists of common stock $833,000 and retained earnings $901,000. Oriole is considering the following two courses of action: (1) declaring a 6% stock dividend on the 83,300 $10 par value shares outstanding or (2) effecting a 2-for-1 stock split that will reduce par value to $5 per share. The current market price is $15 per share. Prepare a tabular summary of the effects of the alternative actions on the company’s stockholders’ equity and outstanding shares.

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: The following data were taken from the balance sheet accounts of Masefield Corporation on December…

A: Step 1 The first journal entry is recorded for a declaration of 5% stock dividend under which…

Q: Bramble Corporation has 31,000 shares of $10 par value common stock outstanding when it announces a…

A: Market price per share after split = Total market value before stock split x 1/ split ratio

Q: On October 31, the stockholders' equity section of Sheridan Company consists of common stock…

A: No. of shares issued under stock dividend = No. of shares outstanding x stock dividend rate = 33500…

Q: The post-closing trial balance of Wildhorse Corporation at December 31, 2022, contains the following…

A:

Q: On October 31, the stockholders' equity section of Cullumber Company consists of common stock…

A: Balance Sheet: The assets, liabilities, and shareholder equity of a firm are all reported on the…

Q: On October 31, the stockholders' equity section of Sheridan Company consists of common stock…

A: Stockholder's equity:  It is also known as the balance of assets available to shareholders after…

Q: Luke Enterprises has 305,000 shares of $18 par common stock outstanding. On January 19, Luke…

A: Stock dividend result in issuance of shares of company to the existing shareholders unlike the cash…

Q: 2. Homework Chapter 10

A: In Stock split offers are given to the present investor's in extent of their current offers. It is…

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

A: Par value will get reduced as follows:

Q: n April 2, 2011, Caesar Corporation’s BOD declared a 15% stock dividend for stockholders on record…

A: The question is based on the concept of Financial Accounting. When a dividend is declared the amount…

Q: On October 31, the stockholders' equity section of Manolo Company's balance sheet consists of common…

A: The stockholders' equity section records the transactions that relates to the shareholders of the…

Q: On July 1, your company has 400,000 shares of $60 par value common stock that are issued and…

A: Stock Split: A stock split occurs when a company reduces the face value of its shares. This has the…

Q: On January 15, 2014, King International’s board of directors declared a 3-for-1 stock split of its…

A: Particulars Amount ($) Common Stock $12 par (3200000 shares authorized and 800000 issued) 9600000…

Q: On June 30, 2017, Sharper Corporation's common stock is priced at $62 per share before any stock…

A: Stock dividend is generally made to existing shareholders to give them a dividend. In this instead…

Q: Italian Stallion has the following transactions during the year related to stockholders' equity. 1…

A: Total dividend declared = Dividend per share x (No. of common stock + No. of preferred stock) =…

Q: On October 31, the stockholders’ equity section of Sunland Company consists of common stock $305,000…

A: Formula: Number of outstanding shares = Total common stock value / PAR value. Division of common…

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: 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: After closing its books on December 31, 20--, Hilltop Corporation stockholders' equity accounts have…

A: The management prepares the equity statement for the owners to get information about the change in…

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

A: Stock dividend is a method of capitalizing the retained earning. Under this, no profit is…

Q: On October 31, the stockholders' equity section of Crane Company's balance sheet consists of common…

A: Stock dividend is a method of capitalizing the retained earning. Under this, no profit is…

Q: How much is the stockholder's equity? How much is the retained earnings?

A: 1. Issuance of 10% stock dividend will affect the share capital (a) Retained earnings A/c   Dr.…

Q: The company with the common equity accounts shown here has declared a 12 percent stock dividend at a…

A: Common stock = 400,000   12% stock dividend so common shares will increase by 12%*400,000 = 48,000…

Q: On October 1, Hawking Corp. had 40,000 shares of $2 par value common stock outstanding before it…

A: Stock split means where company decided to increase the number of share and decrease the par value…

Q: The current stockholders' equity account for Hilo Farms is as follows: $ 210,000 Common stock…

A: Stock dividend is a dividend payable in number of shares not in cash. It shall be at par. We need to…

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

A: Under the concept of stock spliSet, one share is split into more than one share. For example,…

Q: On January 1, 2021, Novak Corp. had  479,000 shares of common stock outstanding. During 2021, it had…

A: Weighted avg no of shares=Outstanding shares*period outstanding/12

Q: After closing the books at month end on June 30, 2020, Slayter Corporation's shareholders' equity…

A: Stock dividend is the distribution of dividend in the form of shares of the company. Stock split…

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

A: Dividend means the amount given to shareholder of the company as profit distribution by company.…

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: On October 1, Ivanhoe Corporation’s stockholders’ equity is as follows. Common stock, $5 par value…

A: Working: No. of Common stock before the stock dividend = $382,000/5 = 76,400 shares No. of Common…

Q: On October 31, the stockholders' equity section of Concord Corporation's balance sheet consists of…

A: Outstanding share is calculated by deducting the treasury stock from the common stock of the…

Q: Atkins Company has 20,000 shares of $5 par value common stock outstanding prior to declaring a 10%…

A: Solution: Amount of stock dividend = outstanding shares *10%* market price = 20000*10%*$11  =…

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: Italian Stallion has the following transactions during the year related to stockholders' equity.…

A: Total dividend declared = (No. of common stock + no. of preferred stock) x Dividend per share =…

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: On June 30, 2021, when ABC Co. stock was selling for $65 each, the equity accounts had the following…

A: Stock dividend refers to the shares that are distributed by the company as a dividend to the…

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: The company with the common equity accounts shown here has declared a 11 percent stock dividend at a…

A: We know that stock dividend is the distribution of free reserves of the entity in the form of…

Q: Before Gordon Corporation engages in the following treasury stock transactions, its general ledger…

A: Treasury Stock: It is a type of share that is repurchased by the issuer and is mostly intended for…

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

A: Par value of 1 share=$10Sharper corporations declares and immediately distributes a 50% stock…

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…

Q: Before Gordon Corporation engages in the following treasury stock transactions, its general ledger…

A: SOLUTION- TREASURY STOCK =  THIS IS TYPE OF SHARE THAT IS REPURCHASED BY THE ISSUER  AND IS MOSTLY…

Q: On June 30, 2021, when ABC Co. stock was selling for $65 each, the equity accounts had the following…

A: Stock dividend is the amount of dividend which is distributed in the form of shares or stock. It…

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.