6 Dividend payment procedures At the quarterly dividend meeting, Wood Shoes declared a cash dividend of $0.59 per share for holders of record on Monday, July 10. The firm has 200,000 shares of common stock outstanding and has set a payment date of July 31. Prior tothe dividend declaration, the firm's key accounts were as follows:a. Show the entries after the meeting adjourned.b. When is the ex-dividend date?c. What values would the key accounts have after the July 31 payment date?d. What effect, if any, will the dividend have on the firm's total assets?e. In a perfect market, what effect, if any, will the dividend have on the firm's stock price on the ex-dividend date?a. Show the entries after the meeting adjourned. (Round to the nearest dollar.)CashDividends payableRetained earningsb. When is the ex-dividend date? (Select the best answer below.)O A. Friday, July 7OB. Sunday, July 9O C. Thursday, July 6O D. Monday, July 10$$Cash$$$300,000Dividends payableRetained earningsc. What values would the key accounts have after the July 31 payment date? (Round to the nearest dollar.)CashDividends payableRetained earningsd. What effect, if any, will the dividend have on the firm's total assets? (Select from the drop-down menu.)The firm's total assets wille. In a perfect market, what effect, if any, will the dividend have on the firm's stock price on the ex-dividend date? (Select the best answer below.)O A. The stock price would be expected to drop by the amount of the declared dividend on the declaration date.O B. The stock price should rise by the amount of the declared dividend on the ex-dividend date.O C. The stock price should drop by the amount of the declared dividend on the ex-dividend date.O D. The stock price would not be expected to change on the ex-dividend date.$ 0$ 2,200,000

"Since you have asked a question with sub-parts more than three, as per guidelines, the first three…

Dividend payment procedures At the quarterly dividend meeting. Wood Shoes declared a cash dividend of $0.59 per share for holders of record on Monday, July 10. The firm has 200,000 shares of common stock outstanding and has set a payment date of July 31. Prior to the dividend declaration, the firm's key accounts were as follows: a. Show the entries after the meeting adjourned. b. When is the ex-dividend date? Cash c. What values would the key accounts have after the July 31 payment date? d. What effect, if any, will the dividend have on the firm's total assets? e. In a perfect market, what effect, if any, will the dividend have on the firm's stock price on the ex-dividend date? a. Show the entries after the meeting adjourned. (Round to the nearest dollar.) Cash $ Dividends payable $ $300,000 Dividends payable Retained earnings $0 $2,200,000

Dividend payment procedures At the quarterly dividend meeting. Wood Shoes declared a cash dividend of $0.59 per share for holders of record on Monday, July 10. The firm has 200,000 shares of common stock outstanding and has set a payment date of July 31. Prior to the dividend declaration, the firm's key accounts were as follows: a. Show the entries after the meeting adjourned. b. When is the ex-dividend date? Cash c. What values would the key accounts have after the July 31 payment date? d. What effect, if any, will the dividend have on the firm's total assets? e. In a perfect market, what effect, if any, will the dividend have on the firm's stock price on the ex-dividend date? a. Show the entries after the meeting adjourned. (Round to the nearest dollar.) Cash $ Dividends payable $ $300,000 Dividends payable Retained earnings $0 $2,200,000

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter13: Corporations: Organization, Stock Transactions, And Dividends

Section: Chapter Questions

Problem 4PB: Entries for selected corporate transactions Nav-Go Enterprises Inc. produces aeronautical navigation...

See similar textbooks

Similar questions

Entries for selected corporate transactions Morrow Enterprises Inc. manufactures bathroom fixtures. Morrow Enterprises stockholders equity accounts, with balances on January 1, 20Y6, are as follows: The following selected transactions occurred during the year: Instructions 1. Enter the January 1 balances in T accounts for the stockholders equity accounts listed. Also prepare T accounts for the following: Paid-In Capital from Sale of Treasury Stock; Stock Dividends Distributable; Stock Dividends; Cash Dividends. 2. Journalize the entries to record the transactions, and post to the eight selected accounts. Assume that the closing entry for revenues and expenses has been made and post net income of 1,125,000 to the retained earnings account. 3. Prepare a statement of stockholders equity for the year ended December 31, 20Y6. Assume that net income was 1,125,000 for the year ended December 31, 20Y6. 4. Prepare the Stockholders Equity section of the December 31, 20Y6, balance sheet.
Entries for selected corporate transactions Nav-Go Enterprises Inc. produces aeronautical navigation equipment. Navo-Go Enterprises stockholders equity accounts, with balances on January 1, 20Y1, are as follows: The following selected transactions occurred during the year: Instructions 1. Enter the January 1 balances in T accounts for the stockholders equity accounts listed. Also prepare T accounts for the following: Paid-In Capital from Sale of Treasury Stock; Stock Dividends Distributable; Stock Dividends; Cash Dividends. 2. Journalize the entries to record the transactions, and post to the eight selected accounts. Assume that the closing entry for revenues and expenses has been made and post net income of 775,000 to the retained earnings account. 3. Prepare a statement of stockholders equity for the year ended December 31, 20Y1. Assume that net income was 775,000 for the year ended December 31, 20Y6. 4. Prepare the Stockholders Equity section of the December 31, 20Y1, balance sheet.
The income statement, statement of retained earnings, and balance sheet for Somerville Company are as follows: Includes both state and federal taxes. Brief Exercise 15-20 Calculating the Average Common Stockholders Equity and the Return on Stockholders Equity Refer to the information for Somerville Company on the previous pages. Required: Note: Round answers to four decimal places. 1. Calculate the average common stockholders equity. 2. Calculate the return on stockholders equity.
Entries for selected corporate transactions Nav-Go Enterprises Inc. produces aeronautical navigation equipment. The stockholders equity accounts of Nav-Go Enterprises Inc., with balances on January 1, 20Y3, are as follows: The following selected transactions occurred during the year: Jan. 15. Paid cash dividends of 0.06 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for 34,320. Mar. 15. Sold all of the treasury stock for 6.75 per share. Apr. 13. Issued 200,000 shares of common stock for 8 per share. June 14. Declared a 3% stock dividend on common stock, to be capitalized at the market price of the stock, which is 7.50 per share. July 16. Issued the certificates for the dividend declared on June 14. Oct. 30. Purchased 50,000 shares of treasury stock for 6 per share. Dec. 30. Declared a 0.08-per-share dividend on common stock. 31. Closed the two dividends accounts to Retained Earnings. Instructions 1. Enter the January 1 balances in T accounts for the stockholders equity accounts listed. Also prepare T accounts for the following: Paid-In Capital from Sale of Treasury Stock; Stock Dividends Distributable; Stock Dividends; Cash Dividends. 2. Journalize the entries to record the transactions and post to the eight selected accounts. 3. Prepare a retained earnings statement for the year ended December 31, 20Y3. 4. Prepare the Stockholders Equity section of the December 31, 20Y3, balance sheet Using Method 1 of Exhibit 8.
Errol Corporation earned net income of $200,000 this year. The company began the year with 10,000 shares of common stock and issued 5,000 more on April 1. They issued $7,500 in preferred dividends for the year. What is the numerator of the EPS calculation for Errol?
On April 2, West Company declared a cash dividend of $0.50 per share. There are 50,000 shares outstanding. What is the journal entry that should be recorded?
On February 13, Solar Company declared a cash dividend of $45,000 to be paid on April 30 to stockholders. The record date will be on March 14. The journal entry on February 13 would be: Question 10Select one: a. debit to Stock Dividend for $45,000; credit to Stock Dividend Distributable for $45,000 b. debit to Cash Dividend Payable for $45,000; credit Cash for $45,000 c. No journal entry d. debit to Cash Dividend for $45,000; credit to Cash Dividend Payable for $45,000 e. debit to Stock Dividend Distributable for $45,000; credit to Common Stock for $45,000
On January 1, Icecap had 7,900 shares of $2 par common stock issued and outstanding. The following transactions occurred during the year. April 15: Declared a cash dividend of $0.80 per share to stockholders of record on May 31. July 10: Paid the $0.80 cash dividend. A Prepare the entry to declare the dividends. (Credit account titles are automatically indented when the amount is entered. Do not Indent manually. List debit entry before credit entry. If no entry is required, select "No Entry" for the account titles and enter o for the amounts) Date Account Titles and Explanation Apr. 15 Cash Dividends Dividends Payable (To record declaration of cash dividend) Debit Date Account Title Credit B. Prepare the entry to pay the dividend. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List debit entry before credit entry. If no entry is required, select "No Entry" for the account tities and enter O for the amounts.)
Dividend payment procedures At the quarterly dividend meeting, Wood Shoes declared a cash dividend of $0.61 per share for holders of record on Monday, July 10 The firm has 350,000 shares of common stock outstanding and has set a payment date of July 31. Prior to the dividend declaration, the firm's key accounts were ptions as follows $ 0 $2.200,000 $400,000 Dividends payable Retained eamings Cash a Show the entries after the meeting adjourned. b. When is the er-dividend date? c. What values would the key accounts have after the July 31 payment date? d. What effect, if any, will the dividend have on the firm's total assets? .In a nartart markat hat offert anu will tho didend have on the firm'e etok nrine nn the ev didend date? a. Show the entries after the meeting adjourned. (Round to the nearest dollar.) Cash Dividends payable Retained eanings Enter your answer in the edit fields and then click Check Answer. 4 parts remaining Clear All Check Answer Type here to search
Divine Apparel has 2,900 shares of common stock outstanding. On October 1, the company declares a $0.25 per share dividend to stockholders of record on October 15. The dividend is paid on October 31. a. Record the entry on date of record. b. Record the payment of cash dividends.
A company declared a cash dividend of $.35 per common share to the shareholders of record on July 15. The cash dividend will be paid on July 31. This company has 500,000 shares authorized and 100,000 shares outstanding. What is the entry to record the payment on the payment date? O debit Common Dividend Payable 35,000 and credit Cash 35,000 O debit Common Dividend Payable 175,000 and credit Cash 175,000 O no entry on payment date O debit Retained Earnings 175,000; credit Common Dividend Payable 175,000 79°F Rain t
On November 12, XYZ Corporation declared a total cash dividend of $45,000 for stockholders of record on November 20 and payable on December 1. (a) Journalize the entries required on November 12, November 20, and December 1. (b) Briefly describe the significance of November 20.