hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... ·...

86
hhfma02.qc12.1_sh.tdxex A stock dividend

Transcript of hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... ·...

Page 1: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.qc12.1_sh.tdxex

A stock dividend

Page 2: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.qc12.2_sh.tdxex

In a small stock dividend,

Page 3: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.qc12.3_sh.tdxex

Stock splits

Page 4: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.qc12.4_sh.tdxex

A company's own stock that it has issued and repurchased is called

Page 5: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.qc12.5_sh.tdxex

Assume that a company paid per share to purchase of its par common as treasury stock. The purchase oftreasury stock

Page 6: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.qc12.6_sh.tdxex

Assume that the bank requires XO, Co., to maintain at least $100,000 in Retained earnings. The $100,000 would be shownas

Page 7: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.qc12.7_sh.tdxex

The income statement for Greg's Groovy Tunes for the year ended December 31, 2010 is as follows:

(Click the icon to view the income statement.)

Greg's Groovy Tunes is most likely to earn net income of $x next year. How much is $x?

Page 1 of 3

Page 8: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.qc12.7_sh.tdxex

Data Table

Page 2 of 3

Page 9: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.qc12.7_sh.tdxex

Page 3 of 3

Page 10: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.qc12.8_sh.tdxex

Which of the following events would be an extraordinary loss?

Page 11: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.qc12.9_sh.tdxex

What is the most widely followed statistic in business?

Page 12: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.qc12.10_sh.tdxex

Earnings per share is not computed for

Page 13: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.s12.1_sh.tdxex

Pool Supply has shares of $ par common stock outstanding. distributes a % stock dividend whenthe market value of its stock is per share.

Requirements1. Journalize 's distribution of the stock dividend on . An explanation is not required. 2. What is the overall effect of the stock dividend on 's total assets? 3. What is the overall effect on total stockholders' equity?

Requirement 1. Journalize the entry for the distribution of dividends on .

Requirement 2.

The stock dividends have on total assets.

Requirement 3.

The stock dividends have on total stockholders' equity.

Page 14: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.s12.2_s.tdxex

Compare and contrast the accounting for cash dividends and stock dividends.

Requirement 1. In the space provided, insert either "Cash dividends," "Stock dividends," or "Both cash dividends and stock dividends" to

complete each of the following statements:

a. decrease Retained earnings.

b. has (have) no effect on a liability.

c. increase paid-in capital by the same amount that they decrease Retained earnings.

d. decrease both total assets and total stockholders' equity, resulting in a decrease in the

size of a company.

Page 15: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.s12.3_sh.tdxex

Imports recently reported the following stockholders' equity (adapted and in millions except par value per share):

(Click the icon to view the data.)

Suppose split its common stock 2 for 1 in order to decrease the market price of its stock. The company's stock wastrading at immediately before the split.

Requirements1. Prepare the stockholders' equity section of Imports' balance sheet after the stock split. 2. Were the account balances changed or unchanged after the stock split?

Requirement 1. Complete the stockholders' equity section of the balance sheet. (Use parentheses or a minus sign for numbers tobe subtracted.)

Requirement 2. The Common stock account balance was .

The Paid-in capital in excess of par account balance was .

The Retained earnings account balance was .

Page 1 of 2

Page 16: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.s12.3_sh.tdxex

The Other equity account was .

The total stockholders' equity was .

Data Table

Page 2 of 2

Page 17: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.s12.4_sh.tdxex

Furniture, Inc., completed the following treasury stock transactions:

a. Purchased shares of the company's $1 par common stock as treasury stock, paying cash of pershare.

b. Sold shares of the treasury stock for cash of per share.

Requirements1. Journalize these transactions. Explanations are not required.

2. Show how will report treasury stock on its December 31, 2010, balance sheet after completing the twotransactions. In reporting the treasury stock, report only on the Treasury stock account. You may ignore all other accounts.

Requirement 1. Journalize the purchase of the treasury stock.

Journalize the sale of the treasury stock.

Requirement 2. Balance sheet at December 31, 2010, will report: (Use parentheses or a minus sign for numbers to be subtracted.)

Page 1 of 2

Page 18: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.s12.4_sh.tdxex

Page 2 of 2

Page 19: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.s12.5_sh.tdxex

Corporation reported the following stockholders' equity:

(Click the icon to view the data.)

Requirements1. Corporation's agreement with its bank lender restricts 's dividend payments for the cost of treasury stock the company

holds. How much in dividends can declare?

2. Why would a bank lender restrict a corporation's dividend payments and treasury stock purchases?

Requirement 1. The maximum amount of dividends is $ .

Requirement 2. A lender may restrict a corporation's dividend payments and treasury stock purchases in order to ensure that the

company maintains a of equity.

Data Table

Page 20: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.s12.6_s.tdxex

Consider the simple income statement and the more complex income statement.

Requirement1. List the major parts of a complex corporate income statement for WRS Athletic Clubs, Inc., for the year ended December 31,

2011. Include all the major parts of the income statement, starting with net sales revenue and ending with net income (netloss). You may ignore dollar amounts and earnings per share.

Page 21: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.s12.7_s.tdxex

Consider a corporate income statement.

Requirements1. How do you measure gross profit?2. What is the title of those items that are both unusual and infrequent?3. Which income number is the best predictor of future net income? 4. What is the "bottom line"? 5. What does EPS abbreviate?

1.

2. The title of those items that are both unusual and infrequent is .

3. The best predictor of future net income is .

4. The "bottom line" is .

5. EPS abbreviates .

Page 22: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.s12.8_sh.tdxex

Corporation's accounting records include the following items, listed in no particular order, at December 31, 2012:

(Click the icon to view the data.)

Income tax of % applies to all items.

Requirement1. Prepare 's income statement for the year ended December 31, 2012. Omit earnings per share.

(Enter losses to be subtracted with a minus sign or parentheses.)

Page 1 of 2

Page 23: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.s12.8_sh.tdxex

More Info

Page 2 of 2

Page 24: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.s12.9_sh.tdxex

Corporation's income statement at year ended December 31, 2012, follows.

(Click the icon to view the data.)

had shares of common stock outstanding during 2012. declared and paid preferred dividends of during2012.

Requirement1. Show how reported data on its 2012 income statement.

(Use parentheses or a minus sign for losses. Round your answers to the nearest cent.)

Page 1 of 2

Page 25: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.s12.9_sh.tdxex

Data Table

Income tax of % applies to all items.

Definition

Earnings per share

Page 2 of 2

Page 26: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.s12.10_s.tdxex

Wells-Carolina, Inc. has preferred stock outstanding.

Requirements1. Give the basic equation to compute earnings per share of common stock for net income. 2. List all the income items for which Wells-Carolina must report data.

1. Determine the basic equation to compute earnings per share of common stock for net income.

Earnings per share =

2. List all the income items for which Wells-Carolina must report EPS data.

Definition

earnings per share

Page 27: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.s12.11_sh.tdxex

Corporation's income statement at year ended December 31, 2012, follows:

(Click the icon to view the data.)

In addition, had unrealized gains of on investments during 2012.

Requirements1. Start with 's net income from the given information and show how the company could report other comprehensive income

on its 2012 income statement.2. Should report earnings per share for other comprehensive income?

Requirement 1. How will the company report other comprehensive income on its 2012 income statement?

Requirement 2. 's earnings per share be reported for other comprehensive income.

Page 1 of 2

Page 28: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.s12.11_sh.tdxex

Data Table

Income tax of % applies to all items.

Page 2 of 2

Page 29: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.s12.12_sh.tdxex

, Inc. ( ) ended 2010 with retained earnings of . During 2011 earned net income of and declared dividends of . Also during 2011, got a tax refund from the Internal Revenue Service. A

tax audit revealed that paid too much income tax back in 2009.

Requirement1. Prepare 's statement of retained earnings for the year ended December 31, 2011, to report theprior-period adjustment.

Page 30: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.e12.13_sh.tdxex

The stockholders' equity of Occupational Therapy, Inc., on December 31, 2009, follows:

(Click the icon to view the data.)

On April 30, 2010, the market price of 's common stock was per share and the company distributed a 10% stockdividend.Requirements1. Journalize the distribution of the stock dividend.2. Prepare the stockholders' equity section of the balance sheet after the stock dividend.

Requirement 1. Journalize the distribution of the stock dividend.

Requirement 2. Prepare the stockholders' equity section of the balance sheet after the stock dividend.

Page 1 of 2

Page 31: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.e12.13_sh.tdxex

Data Table

Page 2 of 2

Page 32: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.e12.14_sh.tdxex

Schools, Inc., is authorized to issue 100,000 shares of $1 par common stock. The company issued at per share.When the market price of common stock was per share, distributed a 10% stock dividend. Later, declared andpaid a per share cash dividend.

Requirements1. Journalize the distribution of the stock dividend.2. Journalize both the declaration and payment of the cash dividend.

Requirement 1. Journalize the distribution of the stock dividend.

Requirement 2. Journalize the declaration of the cash dividend.

Journalize the payment of the cash dividend.

Page 1 of 2

Page 33: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.e12.14_sh.tdxex

Page 2 of 2

Page 34: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.e12.15_sh.tdxex

Many types of transactions may affect stockholders' equity.

Requirement 1. Identify the effects of the following transactions on total stockholders' equity. Each transaction is independent.

a. A 10% stock dividend. Before the dividend, shares of $1 par common stock were outstanding; market value was at the time of the dividend.

b. A 2-for-1 stock split. Prior to the split, shares of par common stock were outstanding.

c. Purchase of shares of treasury stock (par value at $0.50) at per share.

d. Sale of shares of $.50 par treasury stock for per share. Cost of the treasury stock was per share.

(For transactions with no effect, make sure to enter "0" in the amount column.)

Page 35: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.e12.16_sh.tdxex

Golf Club, Corp., had the following stockholders' equity at December 31, 2011:

(Click the icon to view the table.)

On June 30, 2012 split its common stock 2 for 1. Requirements1. Make the memorandum entry to record the stock split. 2. Prepare the stockholders' equity section of the balance sheet immediately after the split.

Requirement 1. Make the memorandum entry:

June Called in the outstanding $ par common stock and distributed shares of $ par common stock for

each old share.

Requirement 2. Complete the stockholders' equity section of the balance sheet.

Page 1 of 2

Page 36: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.e12.16_sh.tdxex

Data Table

Page 2 of 2

Page 37: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.e12.17_sh.tdxex

Treasury stock transactions for Driving School, Inc., follow:

4 Issued shares of $1 par common stock at per share

22 Purchased shares of treasury stock at per share

22 Sold shares of treasury stock at per share

Requirement 1. Journalize the transactions.

Requirement 1. Journalize the transactions in the order they appear in the table.

Page 1 of 2

Page 38: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.e12.17_sh.tdxex

Page 2 of 2

Page 39: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.e12.18_sh.tdxex

Amusements Corporation had the following stockholders' equity on November 30:

(Click the icon to view the data.)

On December 30, purchased shares of treasury stock at per share.

Requirements1. Journalize the purchase of the treasury stock.

2. Prepare the stockholders' equity section of the balance sheet at December 31.

3. How many shares of common stock are outstanding after the purchase of treasury stock?

Requirement 1. Journalize the purchase of the treasury stock.

Requirement 2. Prepare the stockholders' equity section of the balance sheet at December 31.

Page 1 of 3

Page 40: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.e12.18_sh.tdxex

Requirement 3. How many shares of common stock are outstanding after the purchase of treasury stock?

shares are outstanding.

Page 2 of 3

Page 41: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.e12.18_sh.tdxex

Data Table

Page 3 of 3

Page 42: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.e12.19_sh.tdxex

The agreement under which Printers issued its long-term debt requires the restriction of $ of the company'sretained earnings balance. Total retained earnings is , and common stock, no-par, has a balance of .

Requirements1. Report stockholders' equity on 's balance sheet, assuming the following:

a. discloses the restrictions in a note. Write the note.

b. appropriates retained earnings in the amount of the restriction and includes no note in its statements.

Requirement 1 a. Report stockholders' equity on 's balance sheet, assuming that discloses the restrictions in a note.

Complete the note that would be found in the company's financial statements.

Note X - The company's in the amount of $ .

b. Report stockholders' equity on 's balance sheet, assuming that appropriates retained earnings in the amount ofthe restriction and includes no note in its statements.

Page 1 of 2

Page 43: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.e12.19_sh.tdxex

Page 2 of 2

Page 44: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.e12.20_sh.tdxex

The Photographic Supplies, Inc., accounting records include the following for 2012:

(Click the icon to view the accounting records.)

Requirement1. Prepare 's multi-step income statement for 2012. Omit earnings per share. (Use parentheses or a minus sign to report netlosses.)

Page 1 of 2

Page 45: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.e12.20_sh.tdxex

Data Table

Page 2 of 2

Page 46: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.e12.21_sh.tdxex

, Corp., earned net income of for 2011. 's books include the following figures:

(Click to view the data.)

Requirement1. Compute 's for the year. (Round the EPS to two decimal places.)

Corp.'s EPS for 2011 is $ .

Data Table

Definition

earnings per share

Page 47: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.e12.22_sh.tdxex

Academy Surplus had shares of common stock and shares of %, $ par preferred stock outstanding throughDecember 31, 2010. Income from continuing operations of 2010 was , and loss on discontinued operations (net of incometax savings) was $ . also had an extraordinary gain (net of tax) of $ .

Requirement1. Compute EPS amounts for 2010, starting with income from continuing operations.

(Use parentheses or a minus sign for losses. Round your answers to the nearest cent.)

Page 48: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.e12.23_sh.tdxex

Times Express Company had retained earnings of million at December 31, 2010. The company reported these figuresfor 2011:

(Click the icon to view the data.)

Requirement1. Beginning with net income, prepare a combined income statement and retained earnings for Times Express

Company for the year ended December 31, 2011.

Data Table

Page 49: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.e12.24_sh.tdxex

Lou Bakery, Inc., reported a prior-period adjustment in 2010. An accounting error caused net income of prior years to beoverstated by . Retained earnings at December 31, 2009, as previously reported, stood at . Net income for 2010 was

, and dividends were .

Requirement1. Prepare the company's statement of retained earnings for the year ended December 31, 2010.

(Use a minus sign or parentheses when subtracting numbers.)

Page 50: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.e12.25_sh.tdxex

During 2011, , Corp., earned income from continuing operations of . The company also sold a segment ofthe business (discontinued operations) at a loss of and had an extraordinary gain of . At year-end, had an unrealized loss on investments of .

Requirements1. Compute 's net income and comprehensive income for 2011. All amounts are net of income taxes.

2. What final figure should report for 2011? Name the item and show its amount. had shares of common stock (and no preferred stock) outstanding.

1. 's net income for 2011 is $ .

's comprehensive income for 2011 is $ .

2. What final EPS figure should report? Select the item and enter the EPS. (Round the EPS to two decimal places.)

More Info

earnings per share

Page 51: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.p12.26a_sh.tdxex

Manufacturing, Co., completed the following transactions during 2009:

(Click the icon to view the transactions.)

Requirement1. Record the transactions in general journal. (For memorandum entries, only enter the description and leave the amountcells blank.)

Record the cash dividends declared on January 16.

Record the payment of the cash dividends.

Record the stock split.

Page 1 of 4

Page 52: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.p12.26a_sh.tdxex

Record the stock dividend on July 30.

Record the purchase of treasury stock.

Record the sale of treasury stock on the 8th.

Page 2 of 4

Page 53: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.p12.26a_sh.tdxex

Record the sale of treasury stock on the 30th.

Page 3 of 4

Page 54: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.p12.26a_sh.tdxex

Data Table

Jan 16 Declared a cash dividend on the %, par preferred stock (shares outstanding). Declared a per share dividend on the shares of common stock outstanding. The date of record is January 31, andthe payment due date is February 15.

Feb 15 Paid the cash dividends

Jun 10 Split common stock 2 for 1. Before the split, had shares of par common stock outstanding.

Jul 30 Distributed a stock dividend on the common stock. The market valueof the common stock was per share.

Oct 26 Purchased shares of treasury stock at per share

Nov 8 Sold shares of treasury stock for per share

Nov 30 Sold shares of treasury stock for per share

Page 4 of 4

Page 55: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.p12.27a_sh.tdxex

The balance sheet of Foods, at December 31, 2011, reported shares of no-par common stock authorized, with shares issued and a Common stock balance of . Retained earnings had a balance of . During 2012, the

company completed the following selected transactions:

(Click the icon to view the transactions.)

Requirements1. Record the transactions in the general journal. Explanations are not required.

2. Prepare the stockholders' equity section of Foods' balance sheet at December 31, 2012.

Requirement 1. Record the transactions in the general journal. Explanations are not required.

Record the purchase of treasury stock.

Record the stock dividend.

Record the entry to close net income to Retained earnings.

Page 1 of 2

Page 56: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.p12.27a_sh.tdxex

Requirement 2. Prepare the stockholders' equity section of the balance sheet at December 31, 2012. (Use parentheses or a minussign when subtracting numbers.)

Data Table

Mar 15 Purchased shares of treasury stock at per share.Apr 30 Distributed a stock dividend on the outstanding shares of common stock. The

market value of common stock was per share.Dec 31 Earned net income of during the year. Closed net income to Retained

earnings.

Page 2 of 2

Page 57: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.p12.28a_sh.tdxex

The balance sheet of Management Consulting, Inc., at December 31, 2011, reported the following stockholders' equity:

(Click the icon to view the stockholders' equity section of the balance sheet.)

During 2012, completed the following selected transactions.

(Click the icon to view the transactions.)

Requirements1. Record the transactions in the general journal. (Round your answers to the nearest whole dollar.)

2. Prepare a retained earnings statement for the year ended December 31, 2012.

3. Prepare the stockholders' equity section of the balance sheet at December 31, 2012.

Requirement 1.February 6 - Distributed a stock dividend on the common stock. The market value of common stock was pershare.

July 29 - Purchased shares of treasury stock at per share.

Page 1 of 4

Page 58: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.p12.28a_sh.tdxex

November 27 - Declared a per share cash dividend on the shares of common stock outstanding.

December 31 Closed the net income to Retained earnings.

Requirement 2.Prepare the statement of retained earnings at December 31, 2012.

Page 2 of 4

Page 59: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.p12.28a_sh.tdxex

Requirement 3.Prepare the stockholders' equity section of the balance sheet at December 31, 2012. (Use parentheses or a minus sign fornumbers to be subtracted.)

Page 3 of 4

Page 60: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.p12.28a_sh.tdxex

Data Table

More Info

Feb 6 Distributed a stock dividend on the common stock. The market value of stock was per share.

July 29 Purchased shares of treasury stock at per share.

Nov 27 Declared a per share cash dividend on the shares of common stockoutstanding. The date of record is December 17, and the payment date is January 7,2013.

Dec 31 Closed the net income to Retained earnings.

Page 4 of 4

Page 61: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.p12.29a_sh.tdxex

The capital structure of , Inc., at December 31, 2010, included shares of preferred stock and sharesof common stock. Common stock outstanding during 2011 totaled shares. Income from continuing operations during 2011was The company discontinued a segment of the business at a gain of , and also had an extraordinary gain of

The board of directors restricts $ of retained earnings for contingencies. Retained earnings at December31, 2010, was and the company declared preferred dividends of during 2011.

Requirements1. Compute 's earnings per share for 2011. Start with income from continuing operations. All income and loss

amounts are net of income tax.

2. Show two ways of reporting 's retained earnings restriction.

Requirement 1. Compute 's earnings per share for 2011. Start with income from continuing operations. (Round your answers to thenearest cent. )

Requirement 2.Show two ways of reporting 's retained earnings restriction.

Complete the note that would be found in the company's financial statements assuming that discloses the restrictions ina note.

Note X - The company's in the amount of $ .

Report retained earnings on 's balance sheet, assuming that appropriates retained earnings in the amount of

Page 1 of 2

Page 62: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.p12.29a_sh.tdxex

the restriction and includes no note in its statements.

Page 2 of 2

Page 63: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.p12.30a_sh.tdxex

The following information was taken from the records of Motorsports, Inc., at September 30, 2010:

(Click the icon to view the financial information.)

Requirement1. Prepare a multi-step income statement for Motorsports for the fiscal year ended September 30, 2010. Include

earnings per share.

(Round your answers to the nearest cent.)

Page 1 of 2

Page 64: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.p12.30a_sh.tdxex

Data Table

Page 2 of 2

Page 65: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.p12.31a_sh.tdxex

, accountant for Finance, was injured in a boating accident. Another employee prepared theaccompanying income statement for the year ended December 31, 2010.

(Click the icon to view the income statement.) (Click the icon to view the additional information.)

Requirement1. Prepare a corrected combined statement of income and retained earnings for 2010. Prepare the income statement in

single-step format.

Begin by preparing the income statement portion, then retained earnings, and finally calculate the earnings per share.

Page 1 of 4

Page 66: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.p12.31a_sh.tdxex

(Round your answers to the nearest cent.)

Page 2 of 4

Page 67: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.p12.31a_sh.tdxex

Data Table

More Info

Page 3 of 4

Page 68: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.p12.31a_sh.tdxex

The individual amounts listed on the income statement are correct. However some accounts are reported incorrectly, and two items don't belong on theincome statement at all. Also, income tax has not been applied to all appropriate figures. The income tax rate on discontinued operations was .

Finance issued shares of common stock in 2010 and held shares as treasury stock during 2010. Retained earnings atDecember 31, 2009 was .

Page 4 of 4

Page 69: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.p12.32b_sh.tdxex

Manufacturing, Co., completed the following transactions during 2009:

(Click the icon to view the transactions.)

Requirement1. Record the transactions in the general journal. (For memorandum entries, only enter the description and leave the amount cellsblank.)

Record the cash dividends declared on January 16.

Record the payment of the cash dividends.

Record the stock split.

Page 1 of 4

Page 70: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.p12.32b_sh.tdxex

Record the stock dividend on July 30.

Record the purchase of treasury stock.

Record the sale of treasury stock on the 8th.

Page 2 of 4

Page 71: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.p12.32b_sh.tdxex

Record the sale of treasury stock on the 30th.

Page 3 of 4

Page 72: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.p12.32b_sh.tdxex

Data Table

Jan 16 Declared a cash dividend on the %, par preferred stock ( sharesoutstanding). Declared a per share dividend on the shares ofcommon stock outstanding. The date of record is January 31, and thepayment due date is February 15.

Feb 15 Paid the cash dividends

Jun 10 Split common stock 2 for 1. Before the split, had sharesof par common stock outstanding.

Jul 30 Distributed a stock dividend on the common stock. The market valueof the common stock was per share.

Oct 26 Purchased shares of treasury stock at per share

Nov 8 Sold shares of treasury stock for per share

Nov 30 Sold shares of treasury stock for per share

Page 4 of 4

Page 73: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.p12.33b_sh.tdxex

The balance sheet of Foods, at December 31, 2011, reported shares of no-par common stock authorized,with shares issued and a Common stock balance of . Retained earnings had a balance of . During 2012,the company completed the following selected transactions:

(Click the icon to view the transactions.)

Requirements1. Record the transactions in the general journal. Explanations are not required.

2. Prepare the stockholders' equity section of Foods' balance sheet at December 31, 2012.

Requirement 1. Record the transactions in the general journal. Explanations are not required.

Record the purchase of treasury stock.

Data Table

Mar 15 Purchased shares of treasury stock at per share.Apr 30 Distributed a stock dividend on the outstanding shares of common stock. The

market value of common stock was per share.Dec 31 Earned net income of during the year. Closed net income to Retained

earnings.

Page 74: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.p12.34b_sh.tdxex

The balance sheet of Management Consulting, Inc., at December 31, 2011, reported the following stockholders' equity:

(Click the icon to view the stockholders' equity section of the balance sheet.)

During 2012, Management Consulting completed the following selected transactions.

(Click the icon to view the transactions.)

Requirements1. Record the transactions in the general journal.

2. Prepare the retained earnings statement for the year ended December 31, 2012.

3. Prepare the stockholders' equity section of the balance sheet at December 31, 2012.

Requirement 1.February 6 - Distributed a stock dividend on the common stock. The market value of common stock was pershare.

July 29 - Purchased shares of treasury stock at per share.

Page 1 of 4

Page 75: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.p12.34b_sh.tdxex

November 27 - Declared a per share cash dividend on the shares of common stock outstanding.

December 31 Closed the net income to Retained earnings.

Requirement 2.Prepare the statement of retained earnings at December 31, 2012.

Page 2 of 4

Page 76: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.p12.34b_sh.tdxex

Requirement 3.Prepare the stockholders' equity section of the balance sheet at December 31, 2012. (Use parentheses or a minus sign fornumbers to be subtracted.)

Page 3 of 4

Page 77: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.p12.34b_sh.tdxex

Data Table

More Info

Feb 6 Distributed a stock dividend on the common stock. The market value of stock was per share.

July 29 Purchased shares of treasury stock at per share.

Nov 27 Declared a per share cash dividend on the shares of common stockoutstanding. The date of record is December 17, and the payment date is January 7,2013.

Dec 31 Closed the net income to Retained earnings.

Page 4 of 4

Page 78: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.p12.35b_sh.tdxex

The capital structure of , Inc., at December 31, 2010, included shares of preferred stock and shares of common stock. Common shares outstanding during 2011 were . Income from continuing operations during 2011was The company discontinued a segment of the business at a gain of , and also had an extraordinary gain of

board of directors restricts $ of retained earnings for contingencies. Retained earnings at December31, 2010, was and the company declared cash dividends of during 2011.

Requirements1. Compute 's earnings per share for 2011. Start with income from continuing operations. Income and loss

amounts are net of income tax.

2. Show two ways of reporting 's retained earnings restriction.

Requirement 1. Compute 's earnings per share for 2011. Start with income from continuing operations. (Round your answers to thenearest cent. )

Requirement 2.Show two ways of reporting 's retained earnings restriction.

Complete the note that would be found in the company's financial statements assuming that discloses the restrictionsin a note.

Note X - The company's in the amount of $ .

Report retained earnings on 's balance sheet, assuming that appropriates retained earnings in the amount

Page 1 of 2

Page 79: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.p12.35b_sh.tdxex

of the restriction and includes no note in its statements.

Page 2 of 2

Page 80: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.p12.36b_sh.tdxex

The following information was taken from the records of Motorsports, Inc., at September 30, 2010:

(Click the icon to view the financial information.)

Requirement1. Prepare a multi-step income statement for Motorsports for the fiscal year ended September 30, 2010. Include

earnings per share.

(Round your answers to the nearest cent.)

Page 1 of 2

Page 81: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.p12.36b_sh.tdxex

Data Table

Page 2 of 2

Page 82: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.p12.37b_sh.tdxex

, accountant for Finance, was injured in a boating accident. Another employee prepared the followingincome statement for the year ended December 31, 2010:

(Click the icon to view the income statement.) (Click the icon to view the additional information.)

Requirement1. Prepare a corrected combined statement of income and retained earnings for the fiscal year ended December 31, 2010.

Prepare the income statement in single-step format.

Begin by preparing the income statement portion, then retained earnings, and finally calculate the earnings per share.

Page 1 of 4

Page 83: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.p12.37b_sh.tdxex

(Round your answers to the nearest cent.)

Page 2 of 4

Page 84: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.p12.37b_sh.tdxex

Data Table

More Info

Page 3 of 4

Page 85: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.p12.37b_sh.tdxex

The individual amounts listed on the income statement are correct. However, some accounts are reported incorrectly, and two items do not belong on theincome statement at all. Also, income tax has not been applied to all appropriate figures. The income tax rate on discontinued operations was .

issued shares of common stock in 2010 and held shares as treasury stock during 2010. Retained earnings at December 31,2009 was .

Page 4 of 4

Page 86: hhfma02.qc12.1 sh - Mission Collegestreaming.missioncollege.org/jhui/media/ACCTG_001B_39403/... · 2015-07-14 · hhfma02.e12.16_sh.tdxex Golf Club, Corp., had the following stockholders'

hhfma02.e12.38_sh.tdxex

On 15, Lawn Service declares and distributes a % stock dividend to all common shareholders of record on 15when the market price per common share is . has shares of common stock outstanding on the date of record.

Requirements1. Is this a small or large stock dividend?

2. Journalize the entries related to the dividend.

Requirement 1. Is this a small or large stock dividend?

This is a

Requirement 2. Journalize the entries related to the dividends.

Journalize the distribution of the stock dividend.