Accounting, Chapters 1-13
27th Edition
ISBN: 9781337272100
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 13, Problem 13.12EX
To determine
Stock Splits: It is a method of increasing the total number of outstanding shares thereby, reducing the market price of each share, however, keeping the corporation’s total market value constant.
Stock Dividends: It refers to the payment of the dividend to its shareholders by the corporation in the form of shares rather than cash is referred as stock dividend.
To indicate: The whether each of the events related to cash dividend and stock split would increase (+), decrease (–), or not affect (0) the total assets, liabilities, and
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Indicate whether the following actions would (+) increase, (–) decrease, or (0) not affect a company's total assets, liabilities, and stockholders' equity.
Stockholders'
Assets
Liabilities
Equity
(a)
Declaring a cash dividend
_______
_______
_______
(b)
Paying the cash dividend declared in (a)
_______
_______
_______
(c)
Declaring a stock dividend
_______
_______
_______
(d)
Issuing stock certificates for the stock
dividend declared in (c)
_______
_______
_______
Question 10 options:
Alpha declared and issued a stock dividend. Indicate which section, if any, the above transaction
would appear in, or relate to, on a statement of cash flows:
A. Financing activities section
B. Operating activities section
C. Does not represent a cash flow
D. Investing activities section
E. None of the above
Effect of cash dividend and stock splitIndicate whether the following actions would (+) increase. (-) decrease,or (0) not affect Indigo Inc.'s total assets, liabilities, and stockholdersequity:
Chapter 13 Solutions
Accounting, Chapters 1-13
Ch. 13 - Of two corporations organized at approximately the...Ch. 13 - Prob. 2DQCh. 13 - A corporation with both preferred stock and common...Ch. 13 - An owner of 2,500 shares of Simmons Company common...Ch. 13 - Prob. 5DQCh. 13 - What is the primary purpose of a stock split?Ch. 13 - Prob. 7DQCh. 13 - The treasury stock in Discussion Question 7 is...Ch. 13 - What are the three classifications of restrictions...Ch. 13 - Indicate how prior period adjustments should he...
Ch. 13 - A Dividends per share Reinhardt Furniture Company...Ch. 13 - Dividends per share Zero Calories Company has...Ch. 13 - Entries for issuing stock On May 23, Stoltz Realty...Ch. 13 - Entries for issuing stock On January 22, Zentric...Ch. 13 - Prob. 13.3APECh. 13 - Entries for cash dividends The declaration,...Ch. 13 - Prob. 13.4APECh. 13 - Entries for stock dividends Antique Buggy...Ch. 13 - Prob. 13.5APECh. 13 - Entries for treasury stock On May 27, Hydro...Ch. 13 - Reporting stockholders' equity Using the following...Ch. 13 - Reporting stockholders' equity Using the following...Ch. 13 - Retained earnings statement Rockwell Inc. reported...Ch. 13 - Retained earnings statement None Cruises Inc....Ch. 13 - Earnings per share Financial statement data for...Ch. 13 - Earnings per share Financial statement data for...Ch. 13 - Dividends per share Imaging Inc., a developer of...Ch. 13 - Dividends per share Lightfoot Inc., a software...Ch. 13 - Prob. 13.3EXCh. 13 - Prob. 13.4EXCh. 13 - Issuing stock for assets other than cash On April...Ch. 13 - Prob. 13.6EXCh. 13 - Issuing stock Willow Creek Nursery, with an...Ch. 13 - Issuing stock Work Place Products Inc., a...Ch. 13 - Entries for cash dividends The declaration,...Ch. 13 - Prob. 13.10EXCh. 13 - Prob. 13.11EXCh. 13 - Prob. 13.12EXCh. 13 - Prob. 13.13EXCh. 13 - Prob. 13.14EXCh. 13 - Treasury stock transactions Lawn Spray Inc....Ch. 13 - Prob. 13.16EXCh. 13 - Reporting paid-in capital The following accounts...Ch. 13 - Stockholders' Equity section of balance sheet The...Ch. 13 - Prob. 13.19EXCh. 13 - Retained earnings statement Sumter Pumps...Ch. 13 - Prob. 13.21EXCh. 13 - Statement of stockholders' equity The...Ch. 13 - EPS Junkyard Am, Inc., had earnings of 516,000 for...Ch. 13 - Prob. 13.24EXCh. 13 - EPS Caterpillar Inc. and Deere Company are two...Ch. 13 - Prob. 13.1APRCh. 13 - Prob. 13.2APRCh. 13 - Selected stock transactions The following selected...Ch. 13 - Entries for selected corporate transactions Morrow...Ch. 13 - Entries for selected corporate transactions...Ch. 13 - Prob. 13.1BPRCh. 13 - Stock transaction for corporate expansion Pulsar...Ch. 13 - Selected stock transactions Diamondback Welding ...Ch. 13 - Entries for selected corporate transactions Nav-Go...Ch. 13 - Entries for selected corporate transactions West...Ch. 13 - Prob. 13.1CPCh. 13 - Prob. 13.2CPCh. 13 - Communication Motion Designs Inc. has paid...Ch. 13 - Prob. 13.5CPCh. 13 - Prob. 13.6CP
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- Indicate the effects of each of the following transactions on Assets, Liabilities, Share Capital and Retained Earnings. Use + for increase, - for decrease, and 0 for no effect. Share Retained Assets Liabilities Capital Earnings 1. Declaration of cash dividends 2. Payment of cash dividends 3. Declaration of share dividends 4. Issuance of share dividends 5. A share split 6. Cash purchase of treasury stock 7. Sale of treasury stock below costarrow_forwardWhich of the following will reduce Retained Earnings? a. Declaration of a stock dividendb. Payment of a cash dividendc. Profit for the periodd. None of thesearrow_forwardHow does the declaration of a cash dividend affect a company’s assets, liabilities, and equity?a. It results in an increase to liabilities and a decrease to stockholders’ equity, while assetsremain the same.b. It results in an increase to liabilities and a decrease to assets, while stockholders’ equityremains the same.c. It results in an increase to assets and a decrease to liabilities, while stockholders’ equityremains the same.d. It results in an increase to stockholders’ equity and a decrease to assets, while liabilitiesremain the samearrow_forward
- Both cash dividends and stock dividends: a. Reduce total assets. b. Reduce total liabilities. c. Reduce total stockholders’ equity. d. Reduce retained earnings.arrow_forwardWhich statement cash of flows shows the inflows and outflows of the issue and repurchase of stock? A. Fiancing B. Operating C. Investing D. None of the abovearrow_forwardContrast the effects of a cash dividend and a stock dividend on total assets, total liabilities, and total stockholders’ equity.arrow_forward
- Which one of the following is a payment of either cash or shares of stock that is paid out of earnings to a firm's shareholders? Interest Distribution Dividend retained earningsarrow_forwardi) Central to the previous calculations of company valuations are the payment of dividends. The following terms relating to dividend payment chronology. Define each term in a single sentence • Ex-dividend date• Record date • Declaration date• Payment date • Cum-dividend period ii) Give two reasons why a company my distribute cash to shareholders via a buyback rather than a dividendarrow_forwardCash dividends declared but not paid as of the statement of financial position date are reported as a. current liabilityb. deduction from Cashc. addition to Share Capitald. addition to Additional Paid-in Capitalarrow_forward
- Declaration of cash dividends will … a. Increase the retained earnings b. Increase the stockholders’ equity c. Decrease the retained earnings d. Decrease the total equity Entries for dividends are required on the … a. Declaration date and payment date b. Declaration date and record date c. Record date and declaration date d. Payment date and record datearrow_forwardWhich of the following is true of a stock dividend?A. It is a liability.B. The decision to issue a stock dividend resides with shareholders.C. It does not affect total equity but transfers amounts between equity components.D. It creates a cash reserve for shareholders.arrow_forwardIWhich of the following transactions does not involve a cash flow? * O Dividend received O Issue of share capital O issue of share dividends O Prepayment of rentarrow_forward
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