On July 1, Stubbs Corporation had 300,000 no-par-value common shares outstanding. On this day the board of directorsdeclared a 5% share dividend. The fair market value of each share was $12. Which of the following is correct as a possibleentry to record this dividend?Multiple ChoiceOOOShare Dividend DeclaredCashNo entry is requiredShare Dividend DeclaredCommon Share Dividend DistributableShare Dividend Declared*************180,000100,000

A Stock Dividend is a corporate action where the board of directors decides to declare a dividend on…

Answered: On July 1, Stubbs Corporation had…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following dividends both pertain to Ehrlich Corporation.On October 10, the board of directors declared a 10% stock dividend to be distributed onOctober 31 to shareholders of record on October 25. Prior to the dividend, the companyhad 90,000 shares of $5 par common stock issued and outstanding with a market price of$17 per share.A. Prepare the journal entries for the declaration and distribution of the stock dividend.B. Show the new amount of shares outstanding after the stock dividend is issued.On November 15, the board declared a cash dividend of $3 per share to stockholders ofrecord on November 30, to be paid on December 15.C. Prepare the journal entries for the declaration and payment of the cash dividend.
On april 12, hobson corporation declared a quarterlu dividend of 0.05 per share on its 200,000 common shares. The dividend will be paid on april 29 to the sharehders of record on april 19. Prrpare the journal entry necessary for each date
Calgate Company had the following shares outstanding and retained earnings at the end of the current year: Preferred shares, 4% (par value $15; outstanding, 10,300 shares) Common shares (outstanding, 33,000 shares) Retained earnings The board of directors is considering the distribution of a cash dividend to both groups of shareholders. No dividends were declared during the previous two years. Three independent cases are assumed: Case A: The preferred shares are non-cumulative; the total amount of dividends is $51,600. Case B: The preferred shares are cumulative; the total amount of dividends is $63,000. Case C: Same as case B, except the amount is $97,500. Required: 1. Compute the amount of dividends, in total and per share, that would be payable to each class of shareholders for each case. (Round "Per share" to 2 decimal places.) Case A: Total Per share Case B: Total Per share $ 154,500 615,000 296,000 Case C: Total Per share Preferred Shares Common Shares
On 5 March 20X7, Marchant Ltd issued 200,000 5% irredeemable GHS 1 preference shares. In accordance with IAS 32 Financial Instruments: Presentation, how will these shares and their related dividend be shown in Marchant Ltd’s financial statements for the year ended 31 March 20X7? Shares Dividend A Non-current liabilities Income statement B Non-current liabilities Statement of changes in equity C Equity Income statement D Equity Statement of changes in equity
The board of directors of Capstone Incorporated declared a $0.60 per share cash dividend on its $1 par common stock. On the date of declaration, there were 50,000 shares authorized, 20,000 shares issued, and 5,000 shares held as treasury stock. Assuming the dividends were declared on June 1, what is the entry on June 30 to record the payment of cash dividends? Account Title Transection A. B. D. Multiple Choice Dividends Dividends Payable. Dividends Payable Cash Dividends Dividends Payable Dividends Payable Cash Debit 9,000 9,000 12,000 12,000 Credit 9,000 9,000 12,000 12,000
An entity provided the following information at year-end: Preference share capital, at par 2,000,000 Ordinary share capital, at par 3,000,000 Share premium 1,000,000 Sales 10,000,000 Total expenses 7,800,000 Treasury shares at cost – ordinary 500,000 Dividends 700,000 Retained earnings – beginning 1,000,000 What ending balance of Retained Earnings should be reported at year-end?
Gender Corporation declared and issued a 6% share dividend on December 1. Prior to the declaration, Gender's retained earnings were P320,000, shares outstanding were 10,000, P2 par value, ordinary share with a current market value of P14 per share. Contributed capital will increase as a result of recording this share dividend byle sie Select the correct response: O P7,200 O PO O P8,400 O P1,200
ity Company wish to declare a dividend whereby ordinary shareholders are to receive a total per share dividend of P6. The entity provided the following shareholders’ equity at year-end: Preference share capital, P100 par, 9% participating up to 12%, noncumulative,100,000 shares authorized, 30,000 shares issued 3,000,000 Ordinary share capital, P25 par, 200,000 shares authorized and issued 5,000,000 Share premium 1,050,000 Retained earnings 4,300,000What is the total amount of the dividend that must be declared to meet the per share goal of the board of directors?
Function: SUM; Formula: Add, Subtract, Multiply, Divide; Cell Referencing Using Excel to Determine Weighted Average Number of Shares Outstanding PROBLEM Sven Limited had common shares outstanding on January 1, 2023. On March 1, 2023, Sven issued additional shares in exchange for equipment. On July 1, Sven repurchased and cancelled shares. On October 1, 2023, Sven declared a 3- for-1 stock split. Common shares outstanding, January 1, 2020 Shares issued in exchange for equipment Shares cancelled Stock split 42,000 20,000 10,000 3-for-1 Student Work Area Required: Provide input into cells shaded in yellow in this template. Use cell references with a mathematical formula to the Problem area and work area as indicated. Calculate the weighted average number of shares outstanding for Laurin for the year ended December 31, 2023. Event Beginning balance Issued shares Reacquired shares Dates Outstanding Jan. 1-Mar. 1 Mar. 1-July 1 July 1-Dec.31 Shares Outstanding 42,000 Weighted average number…
The entry to record the declaration of dividend of a $0.75 per share dividend on 12,500 outstanding shares of common stock requires a: Select one: a. Credit to retained earnings for $9,375 b. Debit to dividends payable for $9,375 c. Credit to paid in capital in excess of par common for $9,375 d. Debit to retained earnings for $9,375
At the beginning of the current year, WELL Co. had 200,000 ordinary shares and 100,000, 4% par value cumulative preference shares outstanding . No dividends were declared on either the preference or ordinary shares in the prior and current year. At year end, the entity declared a 100% share dividend on ordinary shares . Net income for the current year was P7,500,000. What amount should be reported as basic earnings per share if the par value of preference shares is 100?
On 3 October 20X6, Corbin Ltd issued 100,000 5% redeemable GHS 1 preference shares. These shares are redeemable on 3 October 20Y1. In accordance with IAS 32 Financial Instruments: Presentation, how will these shares and their related dividend be shown in Corbin Ltd’s financial statements for the year ended 31 December 20X6? Shares Dividend A Non-current liabilities Income statement B Non-current liabilities Statement of changes in equity C Equity Income statement D Equity Statement of changes in equity

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