ACC 2301 Study Guide - Midterm Guide: Magazines In Houston, Dividend Yield, Retained Earnings
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BrightBright
​Schools, Inc. is authorized to issue​ 200,000 shares of
​$22
par common stock. The company issued
78 comma 00078,000
shares at
$ 6$6
per share. When the market price of common stock was
$ 8$8
per​ share,
BrightBright
declared and distributed a
1010​%
stock dividend.​ Later,
BrightBright
declared and paid a
$ 0.30$0.30
per share cash dividend.Read the requirements
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.
Requirement 1. Journalize the declaration andthe distribution of the stock dividend.​ (Record debits​ first,then credits. Select the explanation on the last line of thejournal entry​ table.)
​First, journalize the declaration of the stock dividend.
Date | Accounts and Explanation | Debit | Credit | ||||
Now journalize the distribution of the stock dividend.
Date | Accounts and Explanation | Debit | Credit | ||
Requirement 2. Journalize the declaration andpayment of the cash dividend.​ (Record debits​ first, then credits.Select the explanation on the last line of the journal entry​table.)
Begin by journalizing the declaration of the cash dividend.
Date | Accounts and Explanation | Debit | Credit | ||
Now journalize the payment of the cash dividend.
Date | Accounts and Explanation | Debit | Credit | ||
The annual report for Sneer Corporation disclosed that thecompany declared and paid preferred dividends in the amount of$290,000 in the current year. It also declared and paid dividendson common stock in the amount of $1.10 per share. During thecurrent year, Sneer had 1 million common shares authorized; 490,000shares had been issued; and 271,000 shares were in treasury stock.The opening balance in Retained Earnings was $710,000 and NetIncome for the current year was $210,000. Prepare journal entries to record the declaration, and payment,of dividends on (a) preferred and (b) commonstock. (If no entry is required for a transaction/event,select "No Journal Entry Required" in the first accountfield.) 1. Record the declaration of a cash dividend of $290,000 to thepreferred stockholders. 2. Record the payment of the cash dividend to the preferredstockholders. 3. Record the declaration of a cash dividend of $1.10 per share tothe common stockholders payable on the shares outstanding. 4. Record the payment of the cash dividend to the commonstockholders. |
1. The effect of a stock dividend is to
Question 17 options:
change the composition of stockholders' equity. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
increase the book value per share of common stock. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
decrease total assets and stockholders' equity. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
decrease total assets and total liabilities 2. Regular dividends are declared out of:
3. Solaris, Inc. has 2,000 shares of 5%, $10 par value,cumulative preferred stock and 50,000 shares of $1 par value commonstock outstanding at December 31, 2014. What is the annual dividendon the preferred stock? Question 20 options:
Identify the effect the declaration and distribution of a stockdividend has on the par value per share. Question 24 options:
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