Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Chapter 8, Problem 16E
a.
To determine
Provide the entry that will be made on the books of the Corporation for the stock split.
b.
To determine
Identify the number of common shares outstanding and the par value after the stock split.
c.
To determine
Explain the manner by which the stock will be affected by the stock split.
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Exercise 11-16A (Algo) Determining the effects of stock splits on the accounting records LO 11-7
The market value of Yeates Corporation's common stock had become excessively high. The stock was currently selling for $260 per
share. To reduce the market price of the common stock, Yeates declared a 4-for-1 stock split for the 230,000 outstanding shares of its
$10 par value common stock.
Required:
b. Determine the number of common shares outstanding and the par value after the split.
Note: Round par value answer to 2 decimal places.
Number of common shares outstanding
Par value per share after the split
Exercise 11-16A (Algo) Determining the effects of stock splits on the accounting records LO 11-7
The market value of Yeates Corporation's common stock had become excessively high. The stock was currently selling for $270 per
share. To reduce the market price of the common stock, Yeates declared a 3-for-1 stock split for the 310,000 outstanding shares of its
$12 par value common stock.
Required
b. Determine the number of common shares outstanding and the par value after the split. (Round par value answer to 2 decimal
places.)
Number of common shares outstanding
Par value per share after the split
Chapter 12 Homework
еBook
Print Item
Instructions
Selected transactions completed by Canyon Ferry Boating Corporation during the current fiscal year are as follows:
Jan.
8
Split the common stock 2 for 1 and reduced the par from $100 to $50 per share. After the split, there
were 300,000 common shares outstanding.
ApĐł.
30
Declared semiannual dividends of $0.60 per share on 16,000 shares of preferred stock and $0.22 per
share on the common stock payable on July 1.
Jul.
1
Paid the cash dividends.
Oct.
31
Declared semiannual dividends of $0.60 per share on the preferred stock and $0.11 per share on the
common stock (before the stock dividend). In addition, a 5% common stock dividend was declared on
the common stock outstanding. The fair market value of the common stock is estimated at $56.
Dec.
31
Paid the cash dividends and issued the certificates for the common stock dividend.
Journalize the transactions. If no entry is required, simply skip to the next transaction. Refer to the Chart of…
Chapter 8 Solutions
Survey Of Accounting
Ch. 8 - Prob. 1QCh. 8 - Prob. 2QCh. 8 - Prob. 3QCh. 8 - Prob. 4QCh. 8 - 5. What is the purpose of the articles of...Ch. 8 - 6. What is the function of the stock certificate?Ch. 8 - Prob. 7QCh. 8 - Prob. 8QCh. 8 - 9. What is a limited liability company? Discuss...Ch. 8 - Prob. 10Q
Ch. 8 - 11. What is the difference between contributed...Ch. 8 - Prob. 12QCh. 8 - Prob. 13QCh. 8 - 14. What is the meaning of each of the following...Ch. 8 - 15. What is the difference between cumulative...Ch. 8 - 16. What is no-par stock? How is it recorded in...Ch. 8 - 17. Assume that Best Co. has issued and...Ch. 8 - 18. If Best Co. issued 10,000 shares of 20 par...Ch. 8 - 19. What is the difference between par value stock...Ch. 8 - 20. Why might a company repurchase its own stock?Ch. 8 - 21. What effect does the purchase of treasury...Ch. 8 - 22. Assume that Day Company repurchased 1,000 of...Ch. 8 - 23. What is the importance of the declaration...Ch. 8 - 24. What is the difference between a stock...Ch. 8 - 25. Why would a company choose to distribute a...Ch. 8 - 26. What is the primary reason that a company...Ch. 8 - 27. If Best Co. had 10,000 shares of 20 par value...Ch. 8 - 28. When a company appropriates retained earnings,...Ch. 8 - Prob. 29QCh. 8 - Prob. 30QCh. 8 - Prob. 31QCh. 8 - 32. What are some reasons that a corporation might...Ch. 8 - Prob. 1ECh. 8 - Exercise 8-2 Effect of accounting events on the...Ch. 8 - Prob. 3ECh. 8 - Prob. 4ECh. 8 - Exercise 8-5 Characteristics of capital stock The...Ch. 8 - Exercise 8-6 Effect of issuing common stock on the...Ch. 8 - Exercise 8-7 Recording and reporting common and...Ch. 8 - Prob. 8ECh. 8 - Prob. 9ECh. 8 - Prob. 10ECh. 8 - Prob. 11ECh. 8 - Prob. 12ECh. 8 - Exercise 8-13 Recording and reporting treasury...Ch. 8 - Prob. 14ECh. 8 - Prob. 15ECh. 8 - Prob. 16ECh. 8 - Prob. 17ECh. 8 - Prob. 18ECh. 8 - Prob. 19PCh. 8 - Problem 8-20 Effect of business structure on...Ch. 8 - Prob. 21PCh. 8 - Prob. 22PCh. 8 - Problem 8-23 Recording and reporting stock...Ch. 8 - Prob. 24PCh. 8 - Prob. 25PCh. 8 - Problem 8-26 Treasury stock transactions and...Ch. 8 - Prob. 27PCh. 8 - Prob. 28PCh. 8 - Prob. 1ATCCh. 8 - ATC 8-3 Research Assignment Analyzing Skecherss...Ch. 8 - Prob. 4ATCCh. 8 - ATC 11-7 Ethical Dilemma Bad news versus very bad...
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- 5 ok t Exercise 11-12A (Algo) Treasury stock transactions LO 11-5 Elroy Corporation repurchased 3,400 shares of its own stock for $35 per share. The stock has a par of $15 per share. A month later, Elroy resold 850 shares of the treasury stock for $43 per share. Required What is the balance of the Treasury Stock account after these transactions? Balance of treasury stock Nextarrow_forward23 Skipped A company received dividends of $0.50 per share on 1,000 shares of common stock it holds. It is presumed that this equity investment has insignificant influence. The journal entry to record this dividend receipt would consist of a debit to Cash for $500 and credit to Dividend Revenue for $500. True or False True Falsearrow_forwardExercise 11-12A Treasury stock transactions LO 11-5 Elroy Corporation repurchased 2,300 shares of its own stock for $35 per share. The stock has a par of $20 per share. A month later, Elroy resold 575 shares of the treasury stock for $43 per share. Required a. Record the two events in general journal format. (If no entry is required for a transaction/event, select "No journal entry required" In the first account field.) View transaction list Journal entry worksheet < 2 Record the repurchase of own stock. Note: Enter debits before credits. Event 1 Record entry General Journal Clear entry Debit Credit View general Journal m Narrow_forward
- Question 8 Not yet answered a. A company whose share is selling for $28.68 announces a stock split of 8-for- 3. The company has 21, 990 shares on issue. How many more shares will be on the issue when the stock split is complete (please round to the nearest whole share): b. What will be the price after the split Please round your answer to two decimal places (if necessary), and don't insert a comma (,) or dollar sign in your answer.arrow_forwardChapter 11 homework problems Question 12 of 13 View Policies Current Attempt in Progress The following accounts appear in the ledger of Concord Corporation after the books are closed at December 31, 2022: Common Stock, no par, $1 stated value, 411,000 shares authorized; 305,000 shares issued $ 305,000 29,000 Common Stock Dividends Distributable Paid-in Capital in Excess of Stated Value-Common Stock Preferred Stock, $5 par value, 8%, 45,000 shares authorized; 29,800 shares issued Retained Earnings Treasury Stock (13,000 common shares) Paid-in Capital in Excess of Par-Preferred Stock V: eTextbook and Media eTextbook Prepare the stockholders' equity section at December 31, 2022, assuming retained earnings is restricted for plant expansion in the amount of $115,000. For capital stock first enter the preferred stock details. (Enter account name only and do not provide descriptive information.) List of Accounts > Concord Corporation Balance Sheet (Partial) December 31, 2022 Save for Later…arrow_forwardRequired information 7 The par amount of the shares becomes $1 per share. 7 No journal entry is recorded. Knowledge Check 02 Craft declares and distributes a 2-for-1 stock split in the form of a 100% stock dividend and distributes 1,000 shares when the market value of the $1 par common stock is $12 per share. The company chooses not to reclassify earned capital as invested capital with regards to this transaction. Prepare the appropriate journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transactlon llst View Journal entry worksheet No Event General Joumal Debit Credit 100 1 01 Paid-in capital excess of par 100 Common stock Prev 18 of 23 Next > Question no....pages -pdf Question no....pagesarrow_forward
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