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In: Advanced Math
Exercise 10-69 (Algorithmic) Stock Dividends Penguin Company has the following information regarding its common stock: Its...
Exercise 10-69 (Algorithmic)
Stock Dividends
Penguin Company has the following information regarding its common stock:
Its common stock is $15 par, with 300,000 shares authorized, 132,000 shares issued, and 130,600 shares outstanding.
On August 22, 2013, Penguin declared and paid a 15% stock dividend when the market price of the common stock was $28 per share.
1. Prepare the journal entry to record declaration and payment of this stock dividend. For a compound transaction, if an amount box does not require an entry, leave it blank.
2. Prepare the journal entry to record declaration and payment assuming it was a 30% stock dividend.
Solutions
Colby Messinger answered 2 years agoRelated Solutions
Which of the following statements regarding common stock dividends is true? Group of answer choices They...
Which of the following statements regarding common stock
dividends is true?
Group of answer choices
They provide a tax deduction for the corporation paying them,
and they are not included in the taxable income of the
recipients
They provide a tax deduction for the corporation paying them,
but the recipients of the income must pay taxes on the income
They are paid out of the after-tax income of the corporation
paying them, and the recipients also pay taxes on this...
Brief Exercise 6-35 (Algorithmic)Inventory Costing MethodsTyler Company has the following information related to purchases...
Brief Exercise 6-35 (Algorithmic)Inventory Costing MethodsTyler Company has the following information related to purchases
and sales of one of its inventory items.DateDescriptionUnits Purchased at
CostUnits Sold at
RetailSept. 1Beginning inventory400 units @ $12Sept. 10Purchase600 units @ $13Sept. 20Sales700 units @ $22Sept. 25Purchase800 units at $15Assume the company uses a perpetual inventory system.Required:Calculate ending inventory and cost of goods sold using the
FIFO, LIFO, and average cost methods.FIFOLIFOAvg CostCost of goods sold???Ending inventory???
Given the following information for the stock of Foster Company, calculate the risk premium on its common stock.
Integrative—Risk and Valuation Given the following information
for the stock of Foster Company, calculate the risk premium on its
common stock.(Click on the icon located on the top-right corner
of the data table below in order to copy its contents into a
spreadsheet.)Current price per share of common stock$54.71Expected dividend per share next year$2.38Constant annual dividend growth rate7.1%Risk-free rate of return4.3%
Brief Exercise 6-35 (Algorithmic) Inventory Costing Methods Tyler Company has the following information related to purchases...
Brief Exercise 6-35 (Algorithmic) Inventory Costing Methods
Tyler Company has the following information related to purchases
and sales of one of its inventory items. Date Description Units
Purchased at Cost Units Sold at Retail Sept. 1 Beginning inventory
400 units @ $13 Sept. 10 Purchase 600 units @ $14 Sept. 20 Sales
680 units @ $24 Sept. 25 Purchase 600 units at $16 Assume the
company uses a perpetual inventory system.
Required: Calculate ending inventory and cost of goods sold...
Exercise 17-7 On December 21, 2017, Riverbed Company provided you with the following information regarding its...
Exercise 17-7
On December 21, 2017, Riverbed Company provided you with the
following information regarding its equity investments.
December 31, 2017
Investments (Trading)
Cost
Fair Value
Unrealized Gain (Loss)
Clemson Corp. stock
$18,900
$17,900
$(1,000
)
Colorado Co. stock
9,000
8,000
(1,000
)
Buffaloes Co. stock
18,900
19,540
640
Total of portfolio
$46,800
$45,440
(1,360
)
Previous fair value adjustment balance
0
Fair value adjustment—Cr.
$(1,360
)
During 2018, Colorado Company stock was sold for $8,550. The fair
value of...
"Stock Dividends" Please respond to the following: A company is considering issuing a 10% stock dividend...
"Stock
Dividends"
Please respond to the following:
A company is considering issuing a 10% stock dividend to common
stockholders. What are the accounting implications of the stock
dividend?
Should the stock dividend be issued to all stockholders of
record or to stockholders of record excluding shares held as
treasury stock? Why or why not?
Exercise 12.7 Cash dividends, stock dividends, and share splits L.O. 4 HiTech Manufacturing Company has 1,000,000...
Exercise 12.7 Cash dividends, stock dividends, and share splits
L.O. 4
HiTech Manufacturing Company has 1,000,000 shares of $1 par
value share capital outstanding on January 1. The following equity
transactions occurred during the current year:
Apr. 30
Distributed additional shares capital in a 2-for-1 share split.
Market price of shares was $36 per share.
June 1
Declared a cash dividend of $0.96 per share.
July 1
Paid the $0.96 cash dividend to shareholders.
Aug. 1
Declared a 5 percent...
Required information Exercise 11-6 Stock dividends and per share book values LO P2 [The following information...
Required information
Exercise 11-6 Stock dividends and per share book values LO
P2
[The following information applies to the questions
displayed below.]
The stockholders’ equity of TVX Company at the beginning of the day
on February 5 follows:
Common stock—$20 par
value, 150,000 shares
authorized, 56,000 shares issued and outstanding
$
1,120,000
Paid-in capital in excess of par
value, common stock
525,000
Retained earnings
675,000
Total stockholders’ equity
$
2,320,000
On February 5, the directors declare a 12% stock dividend...
Required information Exercise 11-6 Stock dividends and per share book values LO P2 [The following information...
Required information
Exercise 11-6 Stock dividends and per share book values LO
P2
[The following information applies to the questions
displayed below.]
The stockholders’ equity of TVX Company at the beginning of the day
on February 5 follows:
Common stock—$20 par
value, 150,000 shares
authorized, 56,000 shares issued and outstanding
$
1,120,000
Paid-in capital in excess of par
value, common stock
525,000
Retained earnings
675,000
Total stockholders’ equity
$
2,320,000
On February 5, the directors declare a 12% stock dividend...
ABC, Company is expected to pay a dividends of $2.18 on their common stock. The company...
ABC, Company is expected to pay a dividends of $2.18 on their
common stock. The company expects the growth rate to be 3.2%
infinitely. If today's price of the stock is $72.57, what is the
dividend yield?
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