The directors of The Dress Shoppe are considering declaring either a stock dividend or a stock...

The directors of The Dress Shoppe are considering declaring either a stock dividend or a stock split. They have asked you to explain the difference between a stock dividend and a stock split and the accounting for a small stock dividend versus a large stock dividend.

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CASE 15‐9 Stock Dividends The directors of Lenox Corporation are considering issuing a stock dividend. Required:...

CASE 15‐9 Stock Dividends The directors of Lenox Corporation are considering issuing a stock dividend. Required: What is a stock dividend? How is a stock dividend distinguished from a stock split from a legal standpoint? From an accounting standpoint? For what reasons does a corporation usually declare a stock dividend? A stock split? Discuss the amount, if any, of retained earnings to be capitalized in connection with a stock dividend.

does declaring dividend increase dividends payable?

Peterson Co.’s shareholder equity and the percentage of an upcoming stock dividend. Peterson is considering either...

Peterson Co.’s shareholder equity and the percentage of an upcoming stock dividend. Peterson is considering either a 34% stock dividend or a 7% stock dividend. Insert the total equity amount here. (The company is using the cost method for treasury stock.): $__________________________________. Set up cell C16 on P1 so that it AUTOMATICALLY displays the word “Small” or the word “Large” as appropriate to describe the stock dividend (the IF function would accomplish this). Assume a small stock dividend is less...

Woody Shoppe sells wedding dresses. The cost of each dress is comprised of the following: Selling...

Woody Shoppe sells wedding dresses. The cost of each dress is comprised of the following: Selling price of $1,000 and variable (flexible) costs of $400. Total fixed (capacity-related) costs for Wedds Shoppe are $90,000. 1) What is the contribution margin per dress? 2) What is the Woody Shoppe’s total profit when 200 dresses are sold? 3) How many dresses must Wedds Shoppe sell to reach the breakeven point? 4)How many dresses must Wedds Shoppe sell to yield a profit of...

The Board of Directors of Oriole Company is debating what type of dividend (or stock split)...

The Board of Directors of Oriole Company is debating what type of dividend (or stock split) to give its shareholders. The common stock is currently trading at $34 per share. The following is Oriole’s current stockholders’ equity: Common stock, $10 par $ 400,000 Additional paid in capital – common stock 800,000 Retained earnings 1,300,000 Assume the company chooses a cash dividend of $2.50 per share. Assume the company chooses a property dividend. This dividend will be paid using Oriole’s investment...

On September 1, the board of directors of Colorado Outfitters, Inc., declares a stock dividend on...

On September 1, the board of directors of Colorado Outfitters, Inc., declares a stock dividend on its 27,000, $18 par, common shares. The market price of the common stock is $47 on this date. Required: 1. 2. & 3. Record the necessary journal entries assuming a small (10%) stock dividend, a large (100%) stock dividend, and a 2-for-1 stock split. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

A non-dividend stock is trading at $30 and the stock price either moves up or down...

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David's Bridal Shoppe sells wedding dresses. The average selling price of each dress is $1,350, variable...

David's Bridal Shoppe sells wedding dresses. The average selling price of each dress is $1,350, variable costs are $350 per dress, and fixed costs are $100,000. 4. What is the Bridal Shoppe's operating income when 200 dresses are sold? a. $120,000 b. $80,000 c. $100,000 d. $200,000 e. $30,000 5. How many dresses are sold when operating income is zero? a. 225 dresses b. 100 dresses c. 150 dresses d. 90 dresses e. 60 dresses 6. How many dresses must...

1.) On June 13, the board of directors of Siewert Inc. declared a 5% stock dividend...

1.) On June 13, the board of directors of Siewert Inc. declared a 5% stock dividend on its 120 million, $5 par, common shares, to be distributed on July 1. The market price of Siewert common stock was $23 on June 13. Prepare a journal entry that summarizes the declaration and distribution of the stock dividend. 2.) On June 13, the board of directors of Siewert Inc. declared a 2-for-1 stock split on its 100 million, $1.00 par, common shares,...

Exhibit 11-2 On January 31, the board of directors declares a stock dividend of 10% to...

Exhibit 11-2 On January 31, the board of directors declares a stock dividend of 10% to be issued on February 15 to stockholders of record on February 5th. The corporation currently has 500,000 shares of $2 par stock outstanding and a market price of $10/share. ____ 23. Refer to Exhibit 11-2. How many additional shares of stock are issued? a. 500,000 b. 5,00,000 c. 50,000 d. Zero ____ 24. Refer to Exhibit 11-2. What is the journal entry on the...

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