Question
In: Accounting
Stockholders' equity of Ziyech Corporation is as follows: Common stock, $20 par; issued and outstanding 90,000...
Stockholders' equity of Ziyech Corporation is as follows:
Common stock, $20 par; issued and outstanding 90,000 shares: $1,800,000
Paid-in capital – excess of par: $900,000
Retained earnings: $760,000
The current market price of Ziyech’s stock is $37 per share. If Ziyech declares and distributes a 20% stock dividend, paid-in capital – excess of par balance will be:
Multiple Choice
-
$1,566,000
-
$1,206,000
-
$1,260,000
-
$900,000
Solutions
Expert Solution
Correct answer----------------$1,206,000
Working
| Value of Stock Dividend | $ 666,000 |
| Less: Par value of shares (18000 x 20) | $ 360,000 |
| Amount to be credited to paid-in capital – excess of par | $ 306,000 |
| Add: Current balance | $ 900,000 |
| Updated balance after dividend issue (306000+900000) | $ 1,206,000 |
.
| Shares Outstanding | 90000 |
| Stock Dividend % | 20% |
| New shares to be issued | 18000 |
| Market value per share | $ 37.00 |
| Value of Stock Dividend | $ 666,000.00 |
ekkarill92 answered 1 year agoRelated Solutions
Kohler Corporation reports the following components of stockholders’ equity on December 31, 2016: Common stock—$20 par...
Kohler Corporation reports the following components of
stockholders’ equity on December 31, 2016:
Common stock—$20 par value, 100,000 shares authorized,
45,000 shares issued and outstanding
$
900,000
Paid-in capital in excess of par value, common stock
70,000
Retained earnings
460,000
Total stockholders' equity
$
1,430,000
In year 2017, the following transactions affected its stockholders’
equity accounts.
Jan.
1
Purchased 4,000 shares of its own stock at $25 cash per
share.
Jan.
5
Directors declared a $4 per share cash dividend...
Kohler Corporation reports the following components of stockholders’ equity on December 31, 2017. Common stock—$20 par...
Kohler Corporation reports the following components of
stockholders’ equity on December 31, 2017.
Common stock—$20 par value, 100,000 shares authorized,
45,000 shares issued and outstanding
$
900,000
Paid-in capital in excess of par value, common stock
70,000
Retained earnings
400,000
Total stockholders' equity
$
1,370,000
In year 2018, the following transactions affected its
stockholders’ equity accounts.
Jan.
1
Purchased 5,500 shares of its own stock at $20 cash per
share.
Jan.
5
Directors declared a $6 per share cash dividend...
Kohler Corporation reports the following components of stockholders’ equity on December 31, 2016: Common stock—$20 par...
Kohler Corporation reports the following components of
stockholders’ equity on December 31, 2016:
Common stock—$20 par value, 100,000 shares authorized,
55,000 shares issued and outstanding
$
1,100,000
Paid-in capital in excess of par value, common stock
70,000
Retained earnings
430,000
Total stockholders' equity
$
1,600,000
In year 2017, the following transactions affected its stockholders’
equity accounts.
Jan.
1
Purchased 4,500 shares of its own stock at $20 cash per
share.
Jan.
5
Directors declared a $2 per share cash dividend...
Kohler Corporation reports the following components of stockholders’ equity at December 31, 2018. Common stock—$20 par...
Kohler Corporation reports the following components of
stockholders’ equity at December 31, 2018.
Common stock—$20 par value, 100,000 shares authorized,
45,000 shares issued and outstanding
$
900,000
Paid-in capital in excess of par value, common stock
70,000
Retained earnings
460,000
Total stockholders' equity
$
1,430,000
During 2019, the following transactions affected its stockholders’
equity accounts.
Jan.
2
Purchased 5,500 shares of its own stock at $20 cash per
share.
Jan.
5
Directors declared a $2 per share cash dividend payable...
Kohler Corporation reports the following components of stockholders’ equity on December 31, 2015: Common stock—$20 par...
Kohler Corporation reports the
following components of stockholders’ equity on December 31,
2015:
Common stock—$20 par value, 100,000 shares
authorized, 45,000 shares issued and
outstanding
$
900,000
Paid-in capital
in excess of par value, common stock
70,000
Retained
earnings
370,000
Total
stockholders’ equity
$
1,340,000
In year 2016, the
following transactions affected its stockholders’ equity
accounts.
Jan.
1
Purchased 4,500 shares of its own
stock at $20 cash per share.
Jan.
5
Directors declared a $4 per share cash dividend...
Kohler Corporation reports the following components of stockholders’ equity on December 31, 2015: Common stock—$20 par...
Kohler Corporation reports the
following components of stockholders’ equity on December 31,
2015:
Common stock—$20 par value, 100,000 shares
authorized, 45,000 shares issued and
outstanding
$
900,000
Paid-in capital
in excess of par value, common stock
70,000
Retained
earnings
370,000
Total
stockholders’ equity
$
1,340,000
In year 2016, the
following transactions affected its stockholders’ equity
accounts.
Jan.
1
Purchased 4,500 shares of its own
stock at $20 cash per share.
Jan.
5
Directors declared a $4 per share cash dividend...
Kohler Corporation reports the following components of stockholders’ equity on December 31, 2015: Common stock—$20 par...
Kohler Corporation reports the
following components of stockholders’ equity on December 31,
2015:
Common stock—$20 par value, 100,000 shares
authorized, 45,000 shares issued and
outstanding
$
900,000
Paid-in capital
in excess of par value, common stock
70,000
Retained
earnings
370,000
Total
stockholders’ equity
$
1,340,000
In year 2016, the
following transactions affected its stockholders’ equity
accounts.
Jan.
1
Purchased 4,500 shares of its own
stock at $20 cash per share.
Jan.
5
Directors declared a $4 per share cash dividend...
Kohler Corporation reports the following components of stockholders’ equity on December 31, 2017. Common stock—$20 par...
Kohler Corporation reports the following components of
stockholders’ equity on December 31, 2017.
Common stock—$20 par value, 100,000 shares authorized, 45,000
shares issued and outstanding $ 900,000 Paid-in capital in excess
of par value, common stock 70,000 Retained earnings 460,000 Total
stockholders' equity $ 1,430,000 In year 2018, the following
transactions affected its stockholders’ equity accounts. Jan. 1
Purchased 5,500 shares of its own stock at $20 cash per share. Jan.
5 Directors declared a $2 per share cash dividend...
Kohler Corporation reports the following components of stockholders’ equity on December 31, 2016: Common stock—$20 par...
Kohler Corporation reports the following components of
stockholders’ equity on December 31, 2016:
Common stock—$20 par value,
100,000 shares authorized,
40,000 shares issued and outstanding
$
800,000
Paid-in capital in excess of par
value, common stock
70,000
Retained earnings
460,000
Total stockholders' equity
$
1,330,000
In year 2017, the following transactions affected its stockholders’
equity accounts.
Jan.
1
Purchased 5,500 shares of its own
stock at $20 cash per share.
Jan.
5
Directors declared a $2 per share
cash dividend...
Kohler Corporation reports the following components of stockholders’ equity on December 31, 2016: Common stock—$20 par...
Kohler Corporation reports the following components of
stockholders’ equity on December 31, 2016: Common stock—$20 par
value, 100,000 shares authorized, 40,000 shares issued and
outstanding $ 800,000 Paid-in capital in excess of par value,
common stock 60,000 Retained earnings 370,000 Total stockholders'
equity $ 1,230,000 In year 2017, the following transactions
affected its stockholders’ equity accounts. Jan. 1 Purchased 4,500
shares of its own stock at $20 cash per share. Jan. 5 Directors
declared a $4 per share cash dividend...
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