All Related Questions of Stock Split

Q: Newton Inc. uses a calendar year for financial reporting. The

Newton Inc. uses a calendar year for financial reporting. The company is authorized to issue 9,000,000 shares of $10 par common stock. At no time has Newton issued any potentially dilutive securities....

Q: Refer to the situation described in BE 18–13, but

Refer to the situation described in BE 18–13, but assume a 2-for-1 stock split instead of the 5% stock dividend. Prepare the journal entry to record the stock split if it is to be effected in the form...

Q: What is a reverse stock split? What would be the effect

What is a reverse stock split? What would be the effect of a reverse stock split on one million $1 par shares? On the accounting records?

Q: Listed below are the transactions that affected the shareholders’ equity of Branch

Listed below are the transactions that affected the shareholders’ equity of Branch-Rickie Corporation during the period 2018–2020. At December 31, 2017, the corporation’s accounts included: __________...

Q: Hanmi Financial Corporation is the parent company of Hanmi Bank. The

Hanmi Financial Corporation is the parent company of Hanmi Bank. The company’s stock split was announced in the following wire: LOS ANGELES Jan. 20 BUSINESS WIRE —Hanmi Financial Corporation (Nasdaq),...

Q: Indicate by letter whether each of the transactions listed below increases (

Indicate by letter whether each of the transactions listed below increases (I), decreases (D), or has no effect (N) on retained earnings. Assume the shareholders’ equity of the transacting company inc...

Q: Alcoa is the world’s leading producer of primary aluminum, fabricated aluminum

Alcoa is the world’s leading producer of primary aluminum, fabricated aluminum, and alumina. The following is a press release from the company: ALCOA ANNOUNCES 33% INCREASE IN BASE DIVIDEND, 2-FOR-I S...

Q: The balance sheet of Consolidated Paper, Inc., included the following

The balance sheet of Consolidated Paper, Inc., included the following shareholders’ equity accounts at December 31, 2017: ?????_____________________________________($ in millions) Paid-in capital: Pre...

Q: Listed below are several terms and phrases associated with earnings per share

Listed below are several terms and phrases associated with earnings per share. Pair each item from List A with the item from List B (by letter) that is most appropriately associated with it.

Q: Hoosier Corporation declared a 2-for-1 stock split to

Hoosier Corporation declared a 2-for-1 stock split to all shareholders of record on March 25 of this year. Hoosier reported current E&P of $600,000 and accumulated E&P of $3,000,000. The total fair ma...

Q: Indicate whether the following actions would (+) increase, (–) decrease,

Indicate whether the following actions would (+) increase, (–) decrease, or (0) not affect Indigo Inc.’s total assets, liabilities, and stockholdersâ€
...

Q: A. Griffin audited the financial statements of Dodger Magnificat Corporation for

A. Griffin audited the financial statements of Dodger Magnificat Corporation for the year ended December 31, 2017. She completed gathering sufficient appropriate evidence on January 30 and later learn...

Q: Refer to the situation described in BE 18–13, but

Refer to the situation described in BE 18–13, but assume a 2-for-1 stock split instead of the 5% stock dividend. Prepare the journal entry to record the stock split if it is not to be effected in the...

Q: Gamma Medical’s stock trades at $90 a share. The company

Gamma Medical’s stock trades at $90 a share. The company is contemplating a 3-for-2 stock split. Assuming that the stock split will have no effect on the market value of its equity, what will be the c...

Q: Determine what level of market efficiency each event is consistent with:

Determine what level of market efficiency each event is consistent with: a. Immediately after an earnings announcement the stock price jumps and then stays at the new level. b. The CEO buys 50,000 sha...

Q: Stock splits and stock dividends may be used by a corporation to

Stock splits and stock dividends may be used by a corporation to change the number of shares of its stock outstanding. (a) What is meant by a stock split effected in the form of a dividend? (b) From a...

Q: The stockholders’ equity accounts of Lawrence Company have the following balances on

The stockholders’ equity accounts of Lawrence Company have the following balances on December 31, 2012. Common stock, $10 par, 200,000 shares issued and outstanding ……………. $2,000,000 Paid-in capital i...

Q: Hatch Company has two classes of capital stock outstanding: 8%,

Hatch Company has two classes of capital stock outstanding: 8%, $20 par preferred and $5 par common. At December 31, 2012, the following accounts were included in stockholders’ equity. Preferred Stock...

Q: Myers Company provides you with the following condensed balance sheet information.

Myers Company provides you with the following condensed balance sheet information. Instructions For each transaction below, indicate the dollar impact (if any) on the following five items: (1) Total...

Q: Case 1 Kellogg Company Kellogg Company is the world’s leading producer

Case 1 Kellogg Company Kellogg Company is the world’s leading producer of ready-to-eat cereal products. In recent years, the company has taken numerous steps aimed at improving its p...

Q: Case 1 Kellogg Company Kellogg Company is the world’s leading producer

Case 1 Kellogg Company Kellogg Company is the world’s leading producer of ready-to-eat cereal products. In recent years, the company has taken numerous steps aimed at improving its p...

Q: Stock splits and stock dividends may be used by a corporation to

Stock splits and stock dividends may be used by a corporation to change the number of shares of its stock outstanding. (a) What is meant by a stock split effected in the form of a dividend? (b) From a...

Q: Gogean Inc. uses a calendar year for financial reporting. The

Gogean Inc. uses a calendar year for financial reporting. The company is authorized to issue 9,000,000 shares of $10 par common stock. At no time has Gogean issued any potentially dilutive securities....

Q: Chorkina Corporation, a new audit client of yours, has not

Chorkina Corporation, a new audit client of yours, has not reported earnings per share data in its annual reports to stockholders in the past. The treasurer, Beth Botsford, requested that you furnish...

Q: The stockholders’ equity accounts of Lawrence Company have the following balances on

The stockholders’ equity accounts of Lawrence Company have the following balances on December 31, 2012. Common stock, $10 par, 200,000 shares issued and outstanding ……………. $2,000,000 Paid-in capital i...

Q: Hatch Company has two classes of capital stock outstanding: 8%,

Hatch Company has two classes of capital stock outstanding: 8%, $20 par preferred and $5 par common. At December 31, 2012, the following accounts were included in stockholders’ equity. Preferred Stock...

Q: Myers Company provides you with the following condensed balance sheet information.

Myers Company provides you with the following condensed balance sheet information. Instructions For each transaction below, indicate the dollar impact (if any) on the following five items: (1) Total...

Q: In January 2017, Ezra purchased 2,000 shares of Gold

In January 2017, Ezra purchased 2,000 shares of Gold Utility Mutual Fund for $20,000. In June, Ezra received an additional 100 shares as a dividend, in lieu of receiving $1,000 in cash dividends. In D...

Q: Describe the directional effect (increase, decrease, or no effect

Describe the directional effect (increase, decrease, or no effect) of each transaction on the components of the book value of common shareholders’ equity shown in the chart below. a....

Q: Complete the following chart by inserting a check mark (U )

Complete the following chart by inserting a check mark (U ) for each statement that is true.

Q: On July 1, 2011, Davidson Corporation had the following capital

On July 1, 2011, Davidson Corporation had the following capital structure: Common stock (par $3)................... $600,000 Capital in excess of par ......................900,000 Retained earnings.....

Q: GameStop issued the following press release when the company’s stock was selling

GameStop issued the following press release when the company’s stock was selling for $27 per share: GRAPEVINE, Texas—(BUSINESS WIRE)—Feb. 12, 2007—GameStop Corp. (NYSE: GME), the world’s largest video...

Q: Weil Corporation has 80,000 shares of common stock (par

Weil Corporation has 80,000 shares of common stock (par value $8) outstanding. Required: Complete the following comparative tabulation based on two independent cases: Case 1: The board of directors d...

Q: At December 31, 2011, the records of NCIS Corporation provided

At December 31, 2011, the records of NCIS Corporation provided the following selected and incomplete data: Common stock (par $10; no changes during the year). Shares authorized, 200,000. Shares issued...

Q: Refer to the financial statements of Urban Outfitters given in Appendix C

Refer to the financial statements of Urban Outfitters given in Appendix C at the end of this book. Required: 1. How many shares of common stock are authorized at the end of the current year? How many...

Q: The directors of Lenox Corporation are considering issuing a stock dividend.

The directors of Lenox Corporation are considering issuing a stock dividend. Required: a. What is a stock dividend? How is a stock dividend distinguished from a stock split from a legal standpoint? Fr...

Q: A corporation may use stock splits and stock dividends to change the

A corporation may use stock splits and stock dividends to change the number of shares of its stock outstanding. Required: a. What is meant by a stock split effected in the form of a dividend? b. From...

Q: Progresso Corporation, one of your new audit clients, has not

Progresso Corporation, one of your new audit clients, has not reported EPS data in its annual reports to stockholders in the past. The president requested that you furnish information about the report...

Q: Assume that you own 500 shares of $10 par value common

Assume that you own 500 shares of $10 par value common stock of a company and the company has a 2-for-1 stock split when the market price per share is $40. Required: a. How many shares of common stoc...

Q: During the fiscal year ended September 30, 2011, Worrell,

During the fiscal year ended September 30, 2011, Worrell, Inc., had a 2-for-1 stock split and a 5% stock dividend. In its annual report for 2011, the company reported earnings per share for the year e...

Q: On July 1, 2010, an initial registration statement on Form

On July 1, 2010, an initial registration statement on Form 10 was filed with the U.S. Securities and Exchange Commission (“SEC”) in connection with the Company&acir...

Q: Christina Molitoris is preparing for a meeting of the board of directors

Christina Molitoris is preparing for a meeting of the board of directors of Chesapeake Bay Corporation, a developer of moderate-priced homes and vacation homes in the Chesapeake Bay area. The combinat...

Q: At the beginning of the year, the stockholders’ equity section of

At the beginning of the year, the stockholders’ equity section of the balance sheet of Solutions Corporation reflected the following: Common stock ($12 par value; 65,000 shares...

Q: On July 1, Davidson Corporation had the following capital structure:

On July 1, Davidson Corporation had the following capital structure: Common stock ($1 par value) …………â€&brvba...

Q: At the end of the year, the records of NCIS Corporation

At the end of the year, the records of NCIS Corporation provided the following selected and incomplete data: Common stock ($10 par value); no changes in account during the year. Shares authorized: 200...

Q: On January 1, Biofuel Corporation had the following capital structure:

On January 1, Biofuel Corporation had the following capital structure: Common stock ($0.10 par value) …………â€&...

Q: Define stock split. How does a stock split differ from a

Define stock split. How does a stock split differ from a stock dividend?

Q: Reliable Tools, Inc., announced a 100 percent stock dividend.

Reliable Tools, Inc., announced a 100 percent stock dividend. Determine the impact (increase, decrease, no change) of this dividend on the following: 1. Total assets 2. Total liabilities 3. Common sto...

Q: On October 31, the stockholders’ equity section of Manolo Company’s balance

On October 31, the stockholders’ equity section of Manolo Company’s balance sheet consists of common stock $648,000 and retained earnings $400,000. Manolo is considering the following two courses of a...

Q: The board of directors is considering a stock split or a stock

The board of directors is considering a stock split or a stock dividend. They understand that total stockholders’ equity will remain the same under either action. However, they are not sure of the dif...

Q: Using BlackScholesMertonBinomial10e.xlsm, compute the call and put prices for

Using BlackScholesMertonBinomial10e.xlsm, compute the call and put prices for a stock option. The current stock price is $100, the exercise price is $100, the risk-free interest rate is 5 percent (con...

Q: JPix management is considering a stock split. JPix currently sells for

JPix management is considering a stock split. JPix currently sells for $120 per share and a 3-for-2 stock split is contemplated. What will be the company’s stock price following the stock split, assum...

Q: Fauver Enterprises declared a 3-for-1 stock split last

Fauver Enterprises declared a 3-for-1 stock split last year, and this year its dividend is $1.50 per share. This total dividend payout represents a 6% increase over last year’s pre-split total dividen...

Q: The market value of Yeates Corporation’s common stock had become excessively high

The market value of Yeates Corporation’s common stock had become excessively high. The stock was currently selling for $240 per share. To reduce the market price of the common stock, Yeates declared a...

Q: The stockholders’ equity section of the balance sheet for Mann Equipment Co

The stockholders’ equity section of the balance sheet for Mann Equipment Co. at December 31, 2016, is as follows. Note: The market value per share of the common stock is $42, and t...

Q: The following events were experienced by Sequoia, Inc.: 1

The following events were experienced by Sequoia, Inc.: 1. Issued cumulative preferred stock for cash. 2. Issued common stock for cash. 3. Issued noncumulative preferred stock for cash. 4. Paid cash t...

Q: Indicate whether the following actions would (+) increase, (−) decrease,

Indicate whether the following actions would (+) increase, (−) decrease, or (0) not affect Ballistic Scientific Inc.’s total assets, liabilities, and...

Q: While net income is an obviously useful indicator of a firm’s profit

While net income is an obviously useful indicator of a firm’s profit-generating ability, it has equally obvious limitations. Net income will grow with a simple increase in the scale of the operation....

Q: The capital accounts for Alston Market on June 30, 2013,

The capital accounts for Alston Market on June 30, 2013, are as follows: Common stock, $6 par, 50,000 shares issued and outstanding. . . . . . . . . . . . . . . . . . . . $ 300,000 Paid-in capital in...

Q: The following items relate to the activities of Schmidt Company for 2013

The following items relate to the activities of Schmidt Company for 2013: (a) Cash dividends declared and paid on common stock during the year totaled $90,000. In addition, on January 15, 2013, divide...

Q: In early 2013, the $20 par common stock of Driftwood

In early 2013, the $20 par common stock of Driftwood Construction Company was selling in the range of $100 to $130 per share, with 146,000 shares outstanding. On May 1, 2013, Driftwood’s board of dire...

Q: The directors of The Dress Shoppe are considering declaring either a stock

The directors of The Dress Shoppe are considering declaring either a stock dividend or a stock split. They have asked you to explain the difference between a stock dividend and a stock split and the a...

Q: Why do corporations split their stock? Is a stock split good

Why do corporations split their stock? Is a stock split good or bad for investors?

Q: On October 31, the stockholders’ equity section of Pele Company’s balance

On October 31, the stockholders’ equity section of Pele Company’s balance sheet consists of common stock $648,000 and retained earnings $400,000. Pele is considering the following two courses of actio...

Q: On June 30, 2015, Sharper Corporation’s common stock is priced

On June 30, 2015, Sharper Corporation’s common stock is priced at $62 per share before any stock dividend or split, and the stockholders’ equity section of its bala...

Q: In Problem 14, suppose that Douglas McDonnell shareholders approve a 3

In Problem 14, suppose that Douglas McDonnell shareholders approve a 3-for-1 stock split on January 1, 2017. What is the new divisor for the index? Calculate the rate of return on the index for the ye...

Q: WW International (WWI) recently declared a 3-for-

WW International (WWI) recently declared a 3-for-1 stock split for its common shares. Before the split, the firm’s share price had risen to $450 per share and the firm’s CFO felt that this high stock...

Q: The debt and equity section of the Robson Corporation balance sheet is

The debt and equity section of the Robson Corporation balance sheet is shown here. The current market price of the common shares is $20. Reconstruct the financial statement assuming that (a) a 15 per...

Q: What are the advantages of a stock split or dividend over a

What are the advantages of a stock split or dividend over a cash dividend?

Q: Effective April 27, 2017, Dorr Corporation’s shareholders approved a two

Effective April 27, 2017, Dorr Corporation’s shareholders approved a two-for-one split of the company’s common stock and an increase in authorized common shares from 100,000 shares (par value of $20 p...

Q: Campbell Company wants to increase the number of shares of its common

Campbell Company wants to increase the number of shares of its common stock outstanding and is considering a stock dividend versus a stock split. The Stockholders’ Equity section of the firm’s most re...

Q: On January 1, 2017, Svenberg Inc.’s Stockholders’ Equity

On January 1, 2017, Svenberg Inc.’s Stockholders’ Equity category appeared as follows: Preferred stock, $80 par value, 8%, 1,000 shares issued and outstanding …… $ 80,000 Common stock, $10 par value,...

Q: On January 1, 2017, Frederiksen Inc.’s Stockholders’ Equity

On January 1, 2017, Frederiksen Inc.’s Stockholders’ Equity category appeared as follows: Preferred stock, $80 par value, 7%, 3,000 shares issued and outstanding ……..…. $ 240,000 Common stock, $10 pa...

Q: What is a stock split? How does a stock split affect

What is a stock split? How does a stock split affect the market value of a share of stock? Do you think it would make any difference (in price behavior) if the company also changed the dividend rate o...

Q: Prepare journal entries for the following transactions of Watt Corporation. Watt

Prepare journal entries for the following transactions of Watt Corporation. Watt has 20,000 shares of $15 par value common stock outstanding on January 1, 2013. The balance in the Additional Paid-In C...

Q: Bacon, Inc., has the following owners’ equity section in its

Bacon, Inc., has the following owners’ equity section in its May 31, 2010, comparative balance sheets:Required:a. Calculate the amount that should be shown on the balance sheet for c...

Q: The market value of Granger Corporation’s common stock had become excessively high

The market value of Granger Corporation’s common stock had become excessively high. The stock was currently selling for $240 per share. To reduce the market price of the common stock, Granger declared...

Q: The stockholders’ equity section of the balance sheet for Mann Equipment Co

The stockholders’ equity section of the balance sheet for Mann Equipment Co. at December 31, Year 1, is as follows: Note: The market value per share of the common stock is $42, and...

Q: The following events were experienced by Sequoia, Inc.: 1

The following events were experienced by Sequoia, Inc.: 1. Issued cumulative preferred stock for cash. 2. Issued common stock for cash. 3. Issued noncumulative preferred stock for cash. 4. Paid cash t...

Q: The stockholders’ equity section of the balance sheet for Stinson Company at

The stockholders’ equity section of the balance sheet for Stinson Company at December 31, Year 1, is as follows: Note: The market value per share of the common stock is $40, and th...

Q: The following events were experienced by Halbart Inc.: 1.

The following events were experienced by Halbart Inc.: 1. Issued common stock for cash. 2. Distributed a 2-for-1 stock split on the common stock. 3. Appropriated retained earnings. 4. Issued cumulativ...

Q: Hatch Company has two classes of capital stock outstanding: 8%,

Hatch Company has two classes of capital stock outstanding: 8%, $20 par preferred and $5 par common. At December 31, 2017, the following accounts were included in stockholders’ equity. Preferred Sto...

Q: The following note related to stockholders’ equity was reported in Wiebold,

The following note related to stockholders’ equity was reported in Wiebold, Inc.’s annual report. Instructions a. What is the significance of the date of record...

Q: The stockholders’ equity accounts of G.K. Chesterton Company have

The stockholders’ equity accounts of G.K. Chesterton Company have the following balances on December 31, 2017. Common stock, $10 par, 300,000 shares issued and outstanding………..$3,000,000 Paid-in capit...

Q: MasterCard, Inc. completed a 10-for-1 stock

MasterCard, Inc. completed a 10-for-1 stock split on January 22, 2014. Immediately before the stock split there were 120.38 million shares outstanding at a price of $826.00 per share. After the split...

Q: Does a stock split provide an increase in wealth for a shareholder

Does a stock split provide an increase in wealth for a shareholder? If yes how? If no why not?

Q: On October 31, the stockholders’ equity section of Heins Company consists

On October 31, the stockholders’ equity section of Heins Company consists of common stock $500,000 and retained earnings $900,000. Heins is considering the following two courses of action: (1) declari...

Q: During 2020, Roblez Corporation had the following transactions and events.

During 2020, Roblez Corporation had the following transactions and events. 1. Declared a cash dividend. 2. Issued par value common stock for cash at par value. 3. Completed a 2-for-1 stock split in wh...

Q: Before preparing financial statements for the current year, the chief accountant

Before preparing financial statements for the current year, the chief accountant for Toso Company discovered the following errors in the accounts. 1. The declaration and payment of $50,000 cash divide...

Q: Wilson Pharmaceuticals’ stock has done very well in the market during the

Wilson Pharmaceuticals’ stock has done very well in the market during the last three years. It has risen from $55 to $80 per share. The firm’s current statement of...

Q: Worst Buy Company has had a lot of complaints from customers of

Worst Buy Company has had a lot of complaints from customers of late and its stock price is now only $2 per share. It is going to employ a one-for-five reverse stock split to increase the stock value....

Q: Squash Delight Inc. has the following balance sheet:

Squash Delight Inc. has the following balance sheet: The firm’s stock sells for $10 a share. a. Show the effect on the capital account(s) of a two-for-one stock split. b. Show the...

Q: How is a stock split (versus a stock dividend) treated

How is a stock split (versus a stock dividend) treated on the financial statements of a corporation?

Q: Why might a stock dividend or a stock split be of limited

Why might a stock dividend or a stock split be of limited value to an investor?

Q: Define the following terms associated with common stock: a.

Define the following terms associated with common stock: a. Nonvoting stock b. Stock split c. Reverse stock split d. Stock dividend e. Book value f. Treasury stock

Q: Reconsider the problem faced by Templeton Care Facilities, Inc., from

Reconsider the problem faced by Templeton Care Facilities, Inc., from Study Problem 16–6. If the firm’s board of directors decides to use a stock split rather than a stock dividend, how many new share...

Q: Compare a stock split with a stock dividend.

Compare a stock split with a stock dividend.

Q: Nathan Detroit owns 400 shares of the drink company Monster Beverage Corp

Nathan Detroit owns 400 shares of the drink company Monster Beverage Corp., which he purchased for $122 per share. Nathan read in the Wall Street Journal that the company’s board of directors had vote...

Q: The board of Wicker Home Health Care Inc. is exploring ways

The board of Wicker Home Health Care Inc. is exploring ways to expand the number of shares outstanding in an effort to reduce the market price per share to a level that the firm considers more appeali...

Q: Gene owns 1,200 shares of XYX Corp. The company

Gene owns 1,200 shares of XYX Corp. The company instituted a 1-for-10 reverse stock split on November 7. The pre-split market price per share was $1.20. a. How many shares did Gene hold after the spl...

Q: Mike owns 2,400 shares of JXV. The company instituted

Mike owns 2,400 shares of JXV. The company instituted a 1-for-8 reverse stock split on October 17. The pre-split market price per share was $2.13. a. How many shares did Mike hold after the split? b...

Q: 1. A firm’s decision to reduce dividends a. is

1. A firm’s decision to reduce dividends a. is usually not well received by investors. b. is good news as the firm will reinvest funds to finance firm expansion. c. is an indication that the firm has...

Q: Ethan Corporation had 100,000 common shares outstanding on December 31

Ethan Corporation had 100,000 common shares outstanding on December 31, 2016. During 2017, the company issued 12,000 shares on March 1, retired 5,000 shares on July 1, issued a 20% stock dividend on O...

Q: Assume the same information as in BE17-6 except that on

Assume the same information as in BE17-6 except that on October 1, 2017, Laurin declared a 3-for-1 stock split instead of a 10% stock dividend. Data from BE17-6: Laurin Limited had 42,000 common sha...

Q: Assume the same information as in BE17-6 except that on

Assume the same information as in BE17-6 except that on October 1, 2017, Laurin declared a 1-for-2 reverse stock split instead of a 10% stock dividend. Data from BE17-6: Laurin Limited had 42,000 co...

Q: Singh Inc., a public company, has been experiencing financial difficulty

Singh Inc., a public company, has been experiencing financial difficulty in the past few years. As a result, the common shares have been trading at a per share price of just over $1. If the stock trad...

Q: The shareholders’ equity accounts of Abbasi Inc. have the following balances

The shareholders’ equity accounts of Abbasi Inc. have the following balances on December 31, 2017: Common shares, 400,000 shares issued and outstanding………………..$10,000,000 Contributed surplus………………………...

Q: The following data were taken from the statement of financial position accounts

The following data were taken from the statement of financial position accounts of Bedard Corporation on December 31, 2017: Current assets……………………………………………………………………………………………………$1,040,000 FV-NI invest...

Q: On January 1, 2017, Manfred Manufacturers had 300,000

On January 1, 2017, Manfred Manufacturers had 300,000 common shares outstanding. On April 1, the corporation issued 30,000 new common shares to raise additional capital. On July 1, the corporation dec...

Q: Gogeon Inc. is publicly traded and uses a calendar year for

Gogeon Inc. is publicly traded and uses a calendar year for financial reporting. The company is authorized to issue 50 million common shares. At no time has Gogeon issued any potentially dilutive secu...

Q: Koala Inc., a publicly traded company, had 210,000

Koala Inc., a publicly traded company, had 210,000 common shares outstanding on December 31, 2016. During 2017, the company issued 8,000 shares on May 1 and retired 14,000 shares on October 31. For 20...

Q: On January 1, 2017, Logan Limited had shares outstanding as

On January 1, 2017, Logan Limited had shares outstanding as follows: 6% cumulative preferred shares, $100 par value, 10,000 shares issued and outstanding……………………………………………………….$1,000,000 Common shares...

Q: Esau Inc. presented the following data: /

Esau Inc. presented the following data: As of January 1, 2017, there were no dividends in arrears. On December 31, 2017, Esau declared and paid the preferred dividend for 2017. Instructions: (a) Ca...

Q: Secord Limited has two classes of shares outstanding: preferred ($6

Secord Limited has two classes of shares outstanding: preferred ($6 dividend) and common. At December 31, 2016, the following accounts and balances were included in shareholders’ equ...

Q: Guoping Limited provides you with the following condensed statement of financial position

Guoping Limited provides you with the following condensed statement of financial position information: Instructions: (a) For each transaction below, indicate the dollar impact (if any) on the follow...

Q: Mavis Corporation is a new audit client of yours and has not

Mavis Corporation is a new audit client of yours and has not reported earnings per share data in its annual reports to shareholders in the past. The treasurer, Andrew Benninger, has asked you to provi...

Q: Jasmin purchased 100 shares of Pinkstey Corporation (publicly traded company)

Jasmin purchased 100 shares of Pinkstey Corporation (publicly traded company) on January 1 of year 1 for $5,000. The FMV of the shares at the end of year 1 was $6,000. On January 1 of year 4, Pinkstey...

Q: In January 2018, Ezra purchased 2,000 shares of Gold

In January 2018, Ezra purchased 2,000 shares of Gold Utility Mutual Fund for $20,000. In June, Ezra received an additional 100 shares as a dividend, in lieu of receiving $1,000 in cash dividends. In D...

Q: Ethan Corporation had 100,000 common shares outstanding on December 31

Ethan Corporation had 100,000 common shares outstanding on December 31, 2019. During 2020, the company issued 12,000 shares on March 1, retired 5,000 shares on July 1, issued a 20% stock dividend on O...

Q: Assume the same information as in BE17.7 except that on

Assume the same information as in BE17.7 except that on October 1, 2020, Laurin declared a 3- for-1 stock split instead of a 10% stock dividend. Calculate the weighted average number of shares outstan...

Q: Assume the same information as in BE17.7 except that on

Assume the same information as in BE17.7 except that on October 1, 2020, Laurin declared a 1- for-2 reverse stock split instead of a 10% stock dividend. Calculate the weighted average number of shares...

Q: The shareholders' equity accounts of Abbasi Inc. have the following balances

The shareholders' equity accounts of Abbasi Inc. have the following balances on December 31, 2020: Common shares are currently trading on the Toronto Stock Exchange at $59. Instructions Prepare th...

Q: The following data were taken from the SFP accounts of Bedard Corporation

The following data were taken from the SFP accounts of Bedard Corporation on December 31, 2020: Instructions Prepare the required journal entries for the following unrelated events in January 2021....

Q: On January 1, 2020, Logan Limited had shares outstanding as

On January 1, 2020, Logan Limited had shares outstanding as follows: To acquire the net assets of three smaller companies, the company authorized the issuance of an additional 330,000 common shares....

Q: On January 1, 2020, Manfred Manufacturers had 300,000

On January 1, 2020, Manfred Manufacturers had 300,000 common shares outstanding. On April 1, the corporation issued 30,000 new common shares to raise additional capital. On July 1, the corporation dec...

Q: Koala Inc., a publicly traded company, had 210,000

Koala Inc., a publicly traded company, had 210,000 common shares outstanding on December 31, 2019. During 2020, the company issued 8,000 shares on May 1 and retired 14,000 shares on October 31. For 20...

Q: Esau Inc. presented the following data: /

Esau Inc. presented the following data: As at January 1, 2020, there were no dividends in arrears. On December 31, 2020, Esau declared and paid the preferred dividend for 2020. Instructions a. Cal...

Q: Secord Limited has two classes of shares outstanding: preferred ($6

Secord Limited has two classes of shares outstanding: preferred ($6 dividend) and common. At December 31, 2019, the following accounts and balances were included in shareholders' equity: The contribu...

Q: In January 2021, Ezra purchased 2,000 shares of Gold

In January 2021, Ezra purchased 2,000 shares of Gold Utility Mutual Fund for $20,000. In June, Ezra received an additional 100 shares as a dividend, in lieu of receiving $1,000 in cash dividends. In D...

Q: For each dividend and stock split issued, determine the impact—

For each dividend and stock split issued, determine the impact—increase, decrease, or no effect—on total assets, total liabilities, and total equity.

Q: Effective April 27, 20X1, Dorr Corporation’s shareholders approved a two

Effective April 27, 20X1, Dorr Corporation’s shareholders approved a two-for-one split of the company’s common stock and an increase in authorized common shares fro...

Q: Choco-Delite Cookies Company (Choco) declared a $1

Choco-Delite Cookies Company (Choco) declared a $1,600,000 cash dividend on December 15, Year 2, payable to all stockholders on record the following month. On December 31, Year 2, the company complete...

Q: Listed below are the transactions that affected the shareholders’ equity of Branch

Listed below are the transactions that affected the shareholders’ equity of Branch-Rickie Corporation during the period 2021–2023. At December 31, 2020, the corpora...

Q: Nike is the world’s leading designer, marketer, and distributor of

Nike is the world’s leading designer, marketer, and distributor of authentic athletic footwear, apparel, equipment, and accessories. The following is a press release from the company: NIKE, INC. ANNOU...

Q: “I guess I’ll win that bet!” you announced to no

“I guess I’ll win that bet!” you announced to no one in particular. “What bet?” Renee asked. Renee Patey was close enough to overhear you. “When I bought my REC stock last year Randy insisted it was a...

Q: The balance sheet of Consolidated Paper, Inc., included the following

The balance sheet of Consolidated Paper, Inc., included the following shareholders’ equity accounts at December 31, 2020: During 2021, several events and transactions affected the re...

Q: Bee-Boy Honey Products began the current year with 5,

Bee-Boy Honey Products began the current year with 5,000 common shares outstanding. The firm issued additional shares of 1,500 and 1,800 on February 1 and June 1, respectively. In addition, the firm p...

Q: Thomas Company began the year with 150,000 common shares outstanding

Thomas Company began the year with 150,000 common shares outstanding. The firm issued an additional 75,000 shares on May 1 and 15,000 shares on November 1. In addition, Thomas implemented a 2-for-1 st...

Q: Assume that Jarden Associates began the year with 75,000 outstanding

Assume that Jarden Associates began the year with 75,000 outstanding shares and implemented a 7% stock dividend on January 1 of the current year. Jarden employees held 90,000 options that were granted...

Q: Burken Co. has one class of common stock outstanding and no

Burken Co. has one class of common stock outstanding and no other securities that are potentially convertible into common stock. During Year 10, 100,000 shares of common stock were outstanding. In Yea...

Q: How does a 100% stock dividend or a 2-for

How does a 100% stock dividend or a 2-for-1 stock split affect total assets, total liabilities, and total stockholders’ equity?

Q: Refer to the situation described in BE10–11, but assume

Refer to the situation described in BE10–11, but assume a 2-for-1 stock split instead of the 100% stock dividend. Explain why Sandals did not record a 2-for-1 stock split. What are the number of share...

Q: Sammy’s Sportshops has been very profitable in recent years and has seen

Sammy’s Sportshops has been very profitable in recent years and has seen its stock price steadily increase to over $100 per share. The CFO thinks the company should consider either a...

Q: The Athletic Village has done very well the past year, and

The Athletic Village has done very well the past year, and its stock price is now trading at $102 per share. Management is considering either a 100% stock dividend or a 2-for-1 stock split. Required:...

Q: For each dividend and stock split issued, determine the impact—

For each dividend and stock split issued, determine the impact—increase, decrease, or no effect—on total assets, total liabilities, and total equity.

Q: “I guess I’ll win that bet!” you announced to no

“I guess I’ll win that bet!” you announced to no one in particular. “What bet?” Renee asked. Renee Patsy was c...

Q: Twin Towns, Inc., was authorized to issue 300,000

Twin Towns, Inc., was authorized to issue 300,000 shares of common stock and originally issued 100,000 shares of $10 par value stock at $18 per share. Subsequently, 25,000 shares were repurchased at $...

Q: Smelling Company declared a 2-for-1 stock split on

Smelling Company declared a 2-for-1 stock split on its common stock in order to intentionally reduce the market value of its stock so that it would be an attractive investment for a larger set of inve...

Q: Distinguish between a stock split and a stock dividend. Is there

Distinguish between a stock split and a stock dividend. Is there any reason for the difference in accounting treatment of these two events?

Q: When Walt Disney Co. declared a 4:1 split of

When Walt Disney Co. declared a 4:1 split of its common stock, the announcement boosted the entertainment company's shares up by $3.50 per share. INSTRUCTIONS: a. What is a 4: 1 stock split, and how d...

Q: Aspen Industries became a corporation in the state of Colorado on March

Aspen Industries became a corporation in the state of Colorado on March 23, 2018. The company was authorized to issue 1 million shares of $6 par value common stock. Since the date of incorporation, As...

Q: The shareholders' equity section of Rudnicki Corporation contained the following balances as

The shareholders' equity section of Rudnicki Corporation contained the following balances as of December 31, 2020: During 2021, Rudnicki Corporation entered into the following transactions affecting s...

Q: Peter Tanaka is interested in starting a stock portfolio. He has

Peter Tanaka is interested in starting a stock portfolio. He has heard many financial reporters talk about the Dow Jones Industrial Average as being a proxy for the overall stock market. From visiting...

Q: When a company conducts a stock split, it exchanges new shares

When a company conducts a stock split, it exchanges new shares for old ones according to some ratio. For example, in March 2018, Herbalife conducted a two-for-one stock split, so after the split each...

Q: What is a stock split? How does a stock split affect

What is a stock split? How does a stock split affect the market value of a share of stock? Do you think it would make any difference (in price behavior) if the company also changed the dividend rate o...

Q: At the beginning of the year, the stockholders’ equity section of

At the beginning of the year, the stockholders’ equity section of the balance sheet of Solutions Corporation reflected the following: On February 1, the board of directors declared a...

Q: What effect does a stock split have on retained earnings? Explain

What effect does a stock split have on retained earnings? Explain.

Q: The chart of accounts and account balances of The Purple Company on

The chart of accounts and account balances of The Purple Company on January 1, 2022, are shown below. The company does not use reversing entries. Round all computations to the nearest whole dollar. 1....

Q: On March I of the current year Xie Company has 400,

On March I of the current year Xie Company has 400,000 shares of $20 par value common stock that are issued and outstanding. Its balance sheet shows the following account balances relating to a common...

Q: In its second quarter 2018 10-Q, Aflac Incorporated included

In its second quarter 2018 10-Q, Aflac Incorporated included the following information: Stock split: On February 13, 2018, the Board of Directors of the Parent Company declared a two-for-one stock sp...

Q: Watts Corporation has 40,000 shares of $10 par value

Watts Corporation has 40,000 shares of $10 par value common stock outstanding and retained earnings of $820,000. The company declares a I 00% stock dividend. The market price at the declaration is $17...

Q: During the fiscal year ended September 30, 2023, Worrell Inc

During the fiscal year ended September 30, 2023, Worrell Inc. had a 2-for-1 stock split and a 5% stock dividend. In its annual report for 2023, the company reported earnings per share for the year end...

Q: Assume that an investor owns 1,900 shares of $10

Assume that an investor owns 1,900 shares of $10 par value common stock and the company has a 5- for-1 stock split when the market price per share is $108. Required: a. How many shares of common stock...

Q: Bacon Inc. has the following stockholders’ equity section in its May

Bacon Inc. has the following stockholders’ equity section in its May 31, 2022, comparative balance sheets: Required: a. Calculate the amount that should be shown on the balance sheet...