In: Finance
Please show all calculations and formulas. If using Escel, please show data/formulas.
practice 10:
Show the effects of these transactions on the balance sheet equity accounts. Presently the stock price is $20 per share. You started with: common stock ($1 par value) $10,000, capital surplus $100,000, retained earnings $200,000:
a. 12% stock dividend
b. repurchased 1,000 shares (repurchase price is PV of 20)
Step 1: Show the effect of 12% stock dividend transaction on balance sheet :
The result of the above table is as follows :
Step 2: Show the effect of stock repurchase transaction on balance sheet :
The result of the above table is as follows :