In: Accounting
58. Refer to the previous question. By what amount did total
equity and total assets change, if at all? (If the account
balance
or amount did not change, state your answer as "$0.")
Use the following information to answer the next 10
questions:
A company with 50,000 authorized shares of$! par common stock
issued 10,000 shares at $10 per share. Subsequently, the company
declared and paid a $3 cash dividend per share. On the date, the
company declared the dividend, the market price of the shares was
$30 per share.
59. What is the effect of the dividend on Retained
Earnings?
a. Retained earnings decreased
b. Retained earnings increased
c. Retained earnings remained the same
d. None of the above
60. Refer to the previous question. By what amount did Retained Earnings change, if at all? (If the account balance or amount did not change, state your answer as "$0.")
61. What is the effect of the dividend on Common Stock?
a. Common Stock decreased
b. Common Stock increased
c. Common Stock remained the same
d. None of the above
62. Refer to the previous question. By what amount did Common
Stock change, if at all? (If the account balance or amount
did not change, state your answer as "$0")
63. What is the effect of the dividend on Paid-in Capital?
a. Paid-in Capital decreased
b. Paid-in Capital increased
c. Paid-in Capital remained the same
d. None of the above
64. Refer to the previous question. By what amount did Paid-in
Capital change, if at all? (If the account balance or amount
did not change, state your answer as "$0.")
65. What is the effect of the dividend on the number of shares
outstanding?
a. The number decreased
b. The number increased
c. The number remained the same
d. None of the above
66. Refer to the previous question. By what amount did the
number of shares outstanding change, if at all? (If the
account
balance or amount did not change, state your answer as "O.")
67. What is the effect of the dividend on total equity and total
assets?
a. Total equity decreased and total assets decreased
b. Total equity decreased and total assets increased
c. Total equity increased and total assets decreased
d. Total equity increased and total assets increased
e. None of the above
68. Refer to the previous question. By what amount did total
equity and total assets change, if at all? (If the account
balance
or amount did not change, state your answer as "$0.")
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59. What is the effect of the dividend on Retained Earnings? | |||||||
a. Retained earnings decreased | |||||||
61. What is the effect of the dividend on Common Stock? | |||||||
c. Common Stock remained the same | |||||||
62. | No Change | ||||||
63. What is the effect of the dividend on Paid-in Capital? | |||||||
c. Paid-in Capital remained the same | |||||||
64. | No Change | ||||||
65. What is the effect of the dividend on the number of shares outstanding? | |||||||
c. The number remained the same | |||||||
66. | No Change | ||||||
67. What is the effect of the dividend on total equity and total assets? | |||||||
a. Total equity decreased and total assets decreased | |||||||
(Retained Earning and Cash both will go down) |