On October 31, the stockholders’ equity section of Sunland Company consists of common stock $305,000 and retained earnings $891,000. Sunland is considering the following two courses of action: (1) declaring a 5% stock dividend on the 30,500, $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 $14 per share. Prepare a tabular summary of the effects of the alternative actions on the components of stockholders’ equity, outstanding shares, and par value per share.

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: Court Casuals has 100,000 shares of common stock outstanding as of the beginning of the year and has…

A: The question is based on the concept of Financial Accounting.

Q: On January 1, 2021, the stockholders' equity section of Seef Inc. was as follows: Common stock ($10…

A: SOLUTION A JOURNAL IS THE COMPANY'S OFFICIAL BOOK IN WHICH ALL BUSINESS TRANSACTIONS ARE RECORDED IN…

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: opez Corporation reported the following in its December 31, 2009 balance sheet: Common stock , par…

A: Retained Earnings is the excess income generated by the company which will be used by the business…

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: 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: 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 January 1, 2022, Ivanhoe Corporation had the following stockholders’ equity accounts. Common…

A: A shareholder, also referred to as a stockholder. He is a person or company, that owns at least one…

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: 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: 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 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: 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: Velvet Inc. had the following stockholders’ equity account balances at December 31,2006: Preferred…

A: Step 1 Journal is the part of book keeping.

Q: On January 1, 2020, Kingbird Corporation had $2,020,000 of $10 par value common stock outstanding…

A: A journal entry is a record of a firm's business activity that is retained in the company's…

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: Italian Stallion has the following transactions during the year related to stockholders’…

A: Amount of Dividend  = (No. of common stock + No. of preferred stock) x Dividend per share = (6,000…

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: 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: 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: 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: 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: Global Corporation had 60,000 shares of $20 par value common stock outstanding on July 1. Later that…

A: Stock dividends are dividends paid to the shareholders in the form of shares i.e. instead of cash…

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 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: 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: During the current year, Corporation A had 100,000 shares of common stock outstanding. On July 1,…

A: The formula to calculate the current ratio is (Current Assets/Current Liabilities) Stock split is a…

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

A: The stock dividend is a method of capitalizing retained earnings. Under the stock dividend, no…

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: 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: At December 31, Gorden Corporation has total stockholders’ equity of $3,200,000. Included in this…

A: Book value per ordinary share can be defined as the ratio of shareholders' equity and the number of…

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: On January 1, 2021, a company had 499,000 shares of common stock outstanding. During the year, it…

A: Weighted average number of shares outstanding is the average number of shares that are outstanding…

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: Current Assets $ 270,000 Investments $ 312,000 Share Capital - Ordinary (par Value $10) $ 300,000…

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

Q: On November 1, 2020, Skysong, Inc’s stockholders’ equity section is as follows:  Common stock, $10…

A: When a stock dividend is being issued, it will reduce retained earnings of the business and common…

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 February 13, Solo Inc. reacquires 50,000 shares of its $1 par value common stock at the current…

A: The treasury stock includes the own shares of the company that are repurchased from the…

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.