On September 1, the board of directors of Colorado Outfitters, Inc., declares a stock dividend on its 10,000, $1 par, common shares. The market price of the common stock is $30 on this date.Required:1. Record the stock dividend assuming a small (10%) stock dividend.2. Record the stock dividend assuming a large (100%) stock dividend.3. Record the transaction assuming a 2-for-1 stock split.

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: On October 10, the board of directors of Pinto Corporation declared a 10% stock dividend. On October…

A: Journal entry shows recording of each and every business transaction. Every transaction have dual…

Q: Vincent Corporation has 91,000 shares of $105 par common stock outstanding. On June 30, Vincent…

A: Introduction: A journal entry is a record of a business arrangement in the accounting system of a…

Q: On October 10, the stockholders' equity section of Sherman Systems appears as follows. Common…

A: Journal entry is a process of recording and classifying business transactions initially into books…

Q: During its first year of operations, Cullumber Company had the following transactions pertaining to…

A: Total cash received on Jan. 10 = No. of shares issued x pr value per share = 65000 x $5 = $325,000

Q: February 16, Hawthorne Co. declares a $0.34 dividend to be paid on April 5. Hawthorne has 2,000,000…

A: Dividend  pay will result in cash outflows

Q: Smart Corp. was organized on Jan. 1 with authorization of 10,000 shares of $5 preferred stock, $100…

A: The entry for preferred stock issued   Date Particular Debit ($) Credit ($) Dec 31 Cash 20,000…

Q: On January 1, 2021. Hum Enterprises Inc. had 80.000 common shares, recorded at $560,000. The company…

A: Share refers to the unit that is issued by the company into a market to raise funds by making an…

Q: On September 1, the board of directors of Colorado Outfitters, Inc., declares a stock dividend on…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: Zurich Corporation has 18,000 shares of $80 par common stock outstanding. On August 2, Zurich…

A: Common Stock- Common Stock refers to the securities that represent individuals' ownership and have a…

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: 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: Red Market Corporation has 370,000 shares of $27 par common stock outstanding. On June 8, Red Market…

A: Dividend refers to the return a shareholder gets on his investment made in stocks. It can be cash…

Q: Read & Learn Company has $1,000,000 shares of 10%, $20 Par Value Preferred Stock outstanding. On…

A: Number of Preferred Stock outstanding on 15th December = 1,000,000 shares Therefore, Number of…

Q: On January 1, Oriole Corporation had 83000 shares of $10 par value common stock outstanding. On June…

A: The company can raise funds by various methods. Some of them are, by way of issuing common stock,…

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: On September 1, the board of directors of Colorado Outfitters, Incorporated, declares and issues a…

A: Journal entries should not be used to record routine transactions such as customer billings and…

Q: Sunshine Corp. was organized on Jan. 1 with authorization of 20,000 shares of $5 preferred stock,…

A: Journal is the book where transactions are originally recorded.  Journal entry: A journal entry is…

Q: On January 1, Sheffield Corp. had 56,600 shares of no-par common stock issued and outstanding. The…

A: Dividend is payable on No. of outstanding shares.

Q: On January 1, Larkspur, Inc. had 93,000 shares of no-par common stock issued and outstanding. The…

A: Journal entry: This is the first step to record accounts. It is written in the same order in which…

Q: On December 1 of the current year, the following accounts and their balances appear in the ledger of…

A: Common stock: These are the ordinary shares that a corporation issues to the investors in order to…

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 May 20, the board of directors for Auction.com declared a cash dividend of 50 cents per…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: On June 13, the board of directors of Siewert Inc. declared a 5% stock dividend on its 60 million,…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: On January 1, Pharoah Company had 64,500 shares of no-par common stock issued and outstanding. The…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Weaver Corporation had the following stock issued and outstanding at January 1, Year 1:  66,000…

A: Dividends are distributions of earnings by a corporation to its stockholders. Usually the…

Q: Weaver Corporation had the following stock issued and outstanding at January 1, 2018:   94,000…

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

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: Lotoya Davis Corporation has 10 million shares of common stock issued and outstanding. On June 1,…

A: Step 1 The journal entry is recorded for the declaration of dividend under which retained earnings…

Q: 1. Homework Chapter 10

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

Q: 1. 2. & 3. Record the necessary journal entries assuming a small (10%) stock dividend, a large…

A: Small stock dividend  A small stock dividend is distribution of 25 percent or less outstanding…

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: Journalize the entries needed on the declaration and payment dates.

A: Journal entry:   It is a systematic record of a financial transaction of an organization recorded in…

Q: Hi-C Company has $1,000,000 shares of 10%, $20 Par Value Preferred Stock outstanding. On December…

A: The Company has $1,000,000 shares of 10%, $ 20 Par Value Preferred Stock outstanding. On December…

Q: On January 1, Lorain Corporation had 2,000 shares of $5 par common stock authorized and outstanding.…

A: Treasury stock: Treaseury stock are the shares which are bought back by the company from the open…

Q: On June 13, the board of directors of Siewert Inc. declared a 5% stock dividend on its 40 million,…

A:

Q: On January 1, Swifty Corporation had 71000 shares of $10 par value common stock outstanding. On June…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: Top-Value Corporation has 900,000 shares of $26 par common stock outstanding. On September 2,…

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

Q: On January 1, Pina Colada Corp. had 94,000 shares of no-par common stock issued and outstanding. The…

A: Common Shares issued and outstanding at the time declaring Dividend on April 1   94000 shares +…

Q: Weaver Corporation had the following stock issued and outstanding at January 1, Year 1:  66,000…

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

Q: On January 1, Vermont Corporation had 49,400 shares of $11 par value common stock issued and…

A: On february 1,vermont purchased treasury stock for $ 24 and on march 1 it sold treasury stock for…

Q: Nowell Inc. had the following stock issued and outstanding at January 1, Year 2. 1. 150,000 shares…

A: The dividend paid to the preference holders is the product of the par value of preference capital,…

Q: The par value of the preferred is $50. During the first year of operations, the company had the…

A: Journal Entry  Date Account Title Debit Credit Feb 1 Cash (46,500 ×$53) $2,464,500…

Q: Mt. Everst Company has $1,000,000 shares of 10%, $20 Par Value Preferred Stock outstanding. On…

A: 4% Stock Dividend is recorded using the market price of the stock as of the date of stock dividends…

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 June 30, the board of directors of Sandals, Inc., declares and pays a 100% stock dividend on its…

A: Large stock dividend: A stock dividend is considered to be large if new shares issued as stock…

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…

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.