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The shareholders’ equity of Core Technologies Company on June 30, 2020, included the following: Common stock,...
The shareholders’ equity of Core Technologies Company on June 30, 2020, included the following: Common stock, $1 par; authorized, 6 million shares; issued and outstanding, 2 million shares $ 2,000,000 Paid-in capital—excess of par 8,000,000 Retained earnings 9,000,000
On April 1, 2021, the board of directors of Core Technologies declared a 10% stock dividend on common shares, to be distributed on June 1. The market price of Core Technologies’ common stock was $22 on April 1, 2021, and $32 on June 1, 2021.
Required: Complete the below table to calculate the stock dividend. Prepare the journal entries to record the declaration and distribution of the stock dividend.
Complete the below table to calculate the stock dividend.
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Expert Solution
| Stock Dividend | |||
| Number of outstanding shares | 2000000 | ||
| Stock dividend percentage (%) | 10% | ||
| Number of shares to be issued | 200000 | ||
| x Market Value April 1 | 22 | ||
| Value of stock dividend | 4400000 | ||
| Date | General Journal | Debit | Credit |
| April 01, 2021 | Retained earnings | 4400000 | |
| Common stock dividends distributable | 200000 | ||
| Paid-in capital—Excess of par | 4200000 | ||
| June 01, 2021 | Common stock dividends distributable | 200000 | |
| Common stock | 200000 |
ekkarill92 answered 2 years agoRelated Solutions
The shareholders’ equity of Core Technologies Company on June 30, 2020, included the following: Common stock,...
The shareholders’ equity of Core Technologies Company on June
30, 2020, included the following:
Common stock, $1 par; authorized, 8 million shares;
issued and outstanding, 4 million shares
$
4,000,000
Paid-in capital—excess of par
12,000,000
Retained earnings
34,000,000
On April 1, 2021, the board of directors of Core Technologies
declared a 25% stock dividend on common shares, to be distributed
on June 1. The market price of Core Technologies’ common stock was
$30 on April 1, 2021, and $40 on...
National Supply’s shareholders’ equity included the following accounts at December 31, 2020: Shareholders' Equity Common stock,...
National Supply’s shareholders’ equity included the following
accounts at December 31, 2020:
Shareholders' Equity
Common stock, 7 million shares at $1 par
$
7,000,000
Paid-in capital—excess of par
63,000,000
Retained earnings
95,500,000
Required:
1. National Supply reacquired shares of its common
stock in two separate transactions and later sold shares. Prepare
the entries for each of the transactions under each of two separate
assumptions: the shares are (a) retired and (b) accounted for as
treasury stock.
February 15, 2021
Reacquired...
National Supply’s shareholders’ equity included the following accounts at December 31, 2020: Shareholders' Equity Common stock,...
National Supply’s shareholders’ equity included the following
accounts at December 31, 2020:
Shareholders' Equity
Common stock, 5 million shares at $1 par $ 5,000,000
Paid-in capital—excess of par 30,000,000
Retained earnings 98,500,000
Required: 1. National Supply reacquired shares of its common
stock in two separate transactions and later sold shares. Prepare
the entries for each of the transactions under each of two separate
assumptions: the shares are (a) retired and (b) accounted for as
treasury stock.
February 15, 2021 Reacquired...
The shareholders’ equity of Proactive Solutions, Inc., included the following at December 31, 2021: Common stock, $1 par
The shareholders’ equity of Proactive Solutions, Inc., included the following at December 31, 2021: Common stock, $1 par Paid-in capital—excess of par on common stock 7% cumulative convertible preferred stock, $100 par value Paid-in capital—excess of par on preferred stock Retained earnings Additional Information: • Proactive had 7 million shares of preferred stock authorized of which 2 million were outstanding. All 2 million shares outstanding were issued in 2015 for $112 a share. The preferred stock is convertible into common...
National Supply’s shareholders’ equity included the following accounts at December 31, 2017: Shareholders' Equity ($ in...
National Supply’s shareholders’ equity included the following
accounts at December 31, 2017:
Shareholders'
Equity
($
in millions)
Common stock, 4
million shares at $1 par
$
4,000,000
Paid-in capital—excess of
par
16,000,000
Retained earnings
73,000,000
Required:
1a. National Supply reacquired shares of its common stock in two
separate transactions and later sold shares. Prepare the entries
for each of the transactions under each of two separate
assumptions: the shares are (a) retired and (b) accounted for as
treasury stock.
February...
National Supply’s shareholders’ equity included the following accounts at December 31, 2017: Shareholders' Equity ($ in...
National Supply’s shareholders’ equity included the following
accounts at December 31, 2017:
Shareholders' Equity
($ in millions)
Common stock, 3 million shares at $1 par
$
3,000,000
Paid-in capital—excess of par
9,000,000
Retained earnings
71,500,000
Required:
1. National Supply reacquired shares of its common
stock in two separate transactions and later sold shares. Prepare
the entries for each of the transactions under each of two separate
assumptions: the shares are (a) retired and (b) accounted for as
treasury stock.
February...
National Supply’s shareholders’ equity included the following accounts at December 31, 2017: Shareholders' Equity ($ in...
National Supply’s shareholders’ equity included the following
accounts at December 31, 2017: Shareholders' Equity ($ in millions)
Common stock, 7 million shares at $1 par $ 7,000,000 Paid-in
capital—excess of par 63,000,000 Retained earnings 95,500,000
Required: 1. National Supply reacquired shares of its common stock
in two separate transactions and later sold shares. Prepare the
entries for each of the transactions under each of two separate
assumptions: the shares are (a) retired and (b) accounted for as
treasury stock. February...
The company's total shareholders' equity as of 12/31/2020 is $1,777,000 Common stock; par value of $2;...
The company's total shareholders' equity as of 12/31/2020 is
$1,777,000 Common stock; par value of $2; Auth 500,000 and
issued/outstanding 100,000 @ an average issue price of $4.75.
Accumulted other comprehensive income is $180,000. The balance in
shareholders' equity is retained earnings.
During 2021: Sales revenue $880,000, interest revenue $30,000 ;
rent revenue $160,000; Dividend Revenue $80,000; sales Returns
& Allowances $25,000; Sales discounts $70,000; COGS $350,000;
Selling exp $100,000; General Administrative expenses $80,000;
Interest expense $70,000; Loss on sale...
Douglas McDonald Company’s balance sheet included the following shareholders’ equity accounts at December 31, 2020:
Douglas McDonald Company’s balance sheet included the following shareholders’ equity accounts at December 31, 2020: ($ in millions)Paid-in capital: Common stock, 900 million shares at $1 par..................................$ 900 Paid-in capital—excess of par.............................................................15,800 Retained earnings....................................................................................14,888 Total shareholders’ equity..................................................................$31,588 On March 16, 2021, a 4% common stock dividend was declared and distributed. The market value of the common stock was $21 per share. Fractional share rights represented 2 million equivalent whole shares. Cash was paid in lieu of the fractional share rights. ...
Following is the shareholders’ equity section of Morgan Supplies on a day its common stock is...
Following is the shareholders’ equity section of Morgan
Supplies on a day its common stock is trading at $77 per
share.
Common stock ($2 par value, 30,000 shares issued and
outstanding)
$ 60,000
Additional paid-in capital on common stock
1,200,000
Retained earnings
3,000,000
Required:
a. Use the financial statement
template below to show the financial statement effects of
the following dividend events. (Assume that the events are
independent.)
(1) Cash dividend declaration and payment of $1 per share
(2) Property...
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