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In: Finance
The shareholders’ equity account for Kowloonia Trust is shown here: Common Stocks (1,000 shares outstanding) $600,000...
The shareholders’ equity account for Kowloonia Trust is shown here:
Common Stocks (1,000 shares outstanding) $600,000
Retained Earning $790,000
Total $1,390,000
a) If Kowloonia declares a three-for-one stock split, how many shares will be outstanding? Show how the equity accounts will change.
b) If Kowloonia declares a one-for-four reverse stock split, how many shares will be outstanding? Show how the equity accounts will change.
Solutions
jeff jeffy answered 1 year agoRelated Solutions
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Randy Company has 600,000 shares of common stock outstanding. Each share of common stock has a...
Randy Company has 600,000 shares of common stock outstanding.
Each share of common stock has a par value of $10. Please prepare
journal entries to record the following INDEPENDENT
transactions:
1. Randy’s directors declare a 10% stock dividend on September
1, 2019. On that date, the stock is trading on the market at $30
per share.
2. Randy purchases 1,000 of its outstanding shares on January
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Prudential Transportation has 600,000 shares of common stock outstanding at a market price of $25 a...
Prudential Transportation has 600,000 shares of common stock
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Prudential Transportation paid an annual dividend in the amount of
$1.00 per share. The dividend growth rate is 5%. Prudential
Transportation also has 21,000 bonds outstanding with a face value
of $1,000 per bond. The bonds carry a 5% coupon, pay interest
annually, and mature in 10 years. The bonds are selling at 104% of
face value. The company's tax rate...
At the beginning of 2016, Copper Company had the shareholders’ equity as shown below: Common stock...
At the beginning of 2016, Copper Company had the shareholders’
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Common stock $5
par
$35,000
Additional Paid in Capital
$49,000
Retained
Earnings
$63,000
During 2017, the following events and transactions occurred.
Copper had sales revenue of $108,000. It incurred Cost of Goods
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Copper issued 1,000 shares of its $5 par common stock for $14
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Copper invested $30,000 in Available-for-Sale securities. At the
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Record the journal entries for the following facts. 1,000 shares of common stock outstanding. 600 shares...
Record the journal entries for the following facts.
1,000 shares of common stock outstanding.
600 shares of cumulative preferred stock, dividend $3
The cumulative preferred stock has been outstanding for 20
years.
Paid dividends two years ago.
Paid no dividends last year.
The board of directors declared $5,000 of dividends for the
current year
Paid the dividends ten days after they were declared.
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The company with the common equity accounts shown here has
decided on a two-for-one stock split. The firm’s 67-cent-per-share
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The company with the common equity accounts shown here has declared a stock dividend of 20...
The company with the common equity accounts shown here has
declared a stock dividend of 20 percent at a time when the market
value of its stock is $30 per share.
Common stock ($1 par value)
$
460,000
Capital surplus
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Retained earnings
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Total owners' equity
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What would be the number of shares outstanding, after the
distribution of the stock dividend? (Do not round
intermediate calculations.)
New shares outstanding
What would the equity accounts be...
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