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Garber Corporation had 56,000 shares of $14 par common stock outstanding on January 1, Year 1. On June 1, Year 1 Garber purchased 6,900 shares of its own stock on the open market for $24 per share and held it as treasury stock. On October 1, Year 1 Garber declared and issued a 10% stock dividend. The market value of Garber's stock was $26 per share on October 1. Garber's board of directors declared and paid a cash dividend of $58,600 on December 15, Year 1.

Garber Corporation had 56,000 shares of $14 par common stock outstanding on January 1, Year 1. On June 1, Year 1 Garber purchased 6,900 shares of its own stock on the open market for $24 per share and held it as treasury stock. On October 1, Year 1 Garber declared and issued a 10% stock dividend. The market value of Garber's stock was $26 per share on October 1. Garber's board of directors declared and paid a cash dividend of $58,600 on December 15, Year 1.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Garber Corporation had 56,000 shares of $14 par common stock outstanding on January 1, Year 1. On June 1, Year 1 Garber purchased 6,900 shares of its own stock on the open market for $24 per share and held it as treasury stock. On October 1, Year 1 Garber declared and issued a 10% stock dividend. The market value of Garber's stock was $26 per share on October 1. Garber's board of directors declared and paid a cash dividend of $58,600 on December 15, Year 1. Required: a. Show how the purchase of the treasury stock affects the financial statements. b. Show how the issuance of the stock dividend affects each element of the financial statements. c. Show how the declaration and payment of the cash dividend affect the financial statements. d. What was the per share cash dividend paid on December 15? Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Show how the purchase of the treasury stock affects the financial statements. Note: Enter any decreases to account balances and cash outflows with a minus sign. For cash flows, indicate whether each is an operating activity (OA), inve (IA), or financing activity (FA). Leave cells blank if no input is needed. Assets Balance Sheet Liabilities Stockholders' Equity Revenues Income Statement Expenses < Required A Net Income Required B > Statement of Cash Flows
Transcribed Image Text:Garber Corporation had 56,000 shares of $14 par common stock outstanding on January 1, Year 1. On June 1, Year 1 Garber purchased 6,900 shares of its own stock on the open market for $24 per share and held it as treasury stock. On October 1, Year 1 Garber declared and issued a 10% stock dividend. The market value of Garber's stock was $26 per share on October 1. Garber's board of directors declared and paid a cash dividend of $58,600 on December 15, Year 1. Required: a. Show how the purchase of the treasury stock affects the financial statements. b. Show how the issuance of the stock dividend affects each element of the financial statements. c. Show how the declaration and payment of the cash dividend affect the financial statements. d. What was the per share cash dividend paid on December 15? Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Show how the purchase of the treasury stock affects the financial statements. Note: Enter any decreases to account balances and cash outflows with a minus sign. For cash flows, indicate whether each is an operating activity (OA), inve (IA), or financing activity (FA). Leave cells blank if no input is needed. Assets Balance Sheet Liabilities Stockholders' Equity Revenues Income Statement Expenses < Required A Net Income Required B > Statement of Cash Flows
Garber Corporation had 56,000 shares of $14 par common stock outstanding on January 1, Year 1. On June 1, Year 1 Garber purchased 6,900 shares of its own stock on the open market for $24 per share and held it as treasury stock. On October 1, Year 1 Garber declared and issued a 10% stock dividend. The market value of Garber's stock was $26 per share on October 1. Garber's board of directors declared and paid a cash dividend of $58,600 on December 15, Year 1. Required: a. Show how the purchase of the treasury stock affects the financial statements. b. Show how the issuance of the stock dividend affects each element of the financial statements. c. Show how the declaration and payment of the cash dividend affect the financial statements. d. What was the per share cash dividend paid on December 15? Complete this question by entering your answers in the tabs below. Required A Required B Required C Assets Show how the issuance of the stock dividend affects each element of the financial statements. Note: Enter any decreases to account balances and cash outflows with a minus sign. For cash flows, indicate whether each is an operating activity (OA), inve (IA), or financing activity (FA). Leave cells blank if no input is needed. Required D Balance Sheet Liabilities Stockholders' Equity Revenues Income Statement Expenses < Required A Net Income Required C > Statement of Cash Flows
Transcribed Image Text:Garber Corporation had 56,000 shares of $14 par common stock outstanding on January 1, Year 1. On June 1, Year 1 Garber purchased 6,900 shares of its own stock on the open market for $24 per share and held it as treasury stock. On October 1, Year 1 Garber declared and issued a 10% stock dividend. The market value of Garber's stock was $26 per share on October 1. Garber's board of directors declared and paid a cash dividend of $58,600 on December 15, Year 1. Required: a. Show how the purchase of the treasury stock affects the financial statements. b. Show how the issuance of the stock dividend affects each element of the financial statements. c. Show how the declaration and payment of the cash dividend affect the financial statements. d. What was the per share cash dividend paid on December 15? Complete this question by entering your answers in the tabs below. Required A Required B Required C Assets Show how the issuance of the stock dividend affects each element of the financial statements. Note: Enter any decreases to account balances and cash outflows with a minus sign. For cash flows, indicate whether each is an operating activity (OA), inve (IA), or financing activity (FA). Leave cells blank if no input is needed. Required D Balance Sheet Liabilities Stockholders' Equity Revenues Income Statement Expenses < Required A Net Income Required C > Statement of Cash Flows
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