On June 30, the board of directors of Sandals, Inc., declares a 100% stock dividend on its 30,000, $1 par, common shares. The market price of Sandals common stock is $35 on June 30. Record the stock dividend.

On June 30, the board of directors of Sandals, Inc., declares a 100% stock dividend on its 30,000, $1 par, common shares. The market price of Sandals common stock is $35 on June 30. Record the stock dividend.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter15: Dividend Policy

Section: Chapter Questions

Problem 14P

See similar textbooks

Related questions

Q: Eidman Corporation has 80,000 shares of common stock outstanding. It declares a $1 per share cash…

A: A dividend is the distribution of some of a company's earnings to a class of its shareholders, as…

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

Q: Rabbithole. held its quarterly dividend meeting on April 19. At that time, the directors of…

A: Dividend An incentive given to shareholders by companies is known as a dividend, and its funding…

Q: Crane Corporation has 12.50 million shares of common stock issued and outstanding. On June 1, the…

A: Entries to record dividend, if the dividend represents a distribution of earnings.

Q: Tidwell Corporation has 50,000 shares of $10 par value common stock outstanding. It declares a 10%…

A: Stock dividend is the dividend that is paid in the form of stock rather cash. In this case,…

Q: On January 1, 2021. Hum Enterprises Inc. had 80.000 common shares, recorded at $560,000. The company…

A: Share refers to the unit that is issued by the company into a market to raise funds by making an…

Q: Greenwood Corporation has 80,000 shares of common stock outstanding. It declares a $1 per share cash…

A: Cash dividends are cash distributions of accumulated earnings by a corporation to its stockholders.…

Q: On January 1, 2020, Kingbird, Inc. had 85,000 shares of $1 par value common stock issued and…

A: Journal entry: A journal entry is used to record day-to-day transactions of the business by debiting…

Q: On March 15, American Eagle declares a quarterly cash dividend of $0.125 per share payable on April…

Q: On January 1, 2021, Dodd, Inc., declared a 10% stock dividend on its common stock when the fair…

A: Retained Earnings: Retained Earnings (RE) is a term used to describe the amount of net income that…

Q: Sheridan Company has 48,000 shares of $10 par value common stock outstanding. It declares a 10%…

A: Stock dividend is a method of capitalizing the retained earning. Under this, no profit is…

Q: Langley Corporation has 50,000 shares of $10 par value common stock outstanding. It declares a 15%…

A: Stock dividend is a method of capitalizing the retained earning. Under this, no profit is…

Q: On april 12, hobson corporation declared a quarterlu dividend of 0.05 per share on its 200,000…

A: Common stock: These are the shares issued by a company to an outsider. These shares entitle a share…

Q: Tomba Corporation had 300,000 shares of common stock outstanding on January 1, 2020. On May 1, Tomba…

A: Weighted average number of shares refers to number of shares after incorporating change in shares…

Q: Antique Buggy Corporation has 820,000 shares of $35 par common stock outstanding. On June 8, Antique…

A: Stock Dividends: It refers to the payment of dividends by a company to its existing shareholders, in…

Q: Knapp Industries began business on January 1, 2018 by issuing all of its 1,600,000 authorized shares…

A: Treasury shares has debit account balance. It would be deducted to determine the stockholders'…

Q: Ammon Company is authorized to issue 500,000 shares of $5 par value preferred stock. In its first…

A: A Journal is made to record all the business transactions in chronological order. It is the first…

Q: Sheldon, Inc. declared a stock dividend of 50,000 shares on a date when the company's common…

A: Stock dividend is a method of capitalizing the retained earning. Under this, no profit is…

Q: The stockholders’ equity of TVX Company at the beginning of the day on February 5 follows.…

A: We have to provide journal entries for dividend declaration and its distribution.

Q: Epic Inc. has 10,000 shares of $2 par value common stock outstanding, Epic declares a 5% stock…

A: Dividends: This is the amount of cash distributed to stockholders by a company out its earnings,…

Q: On March 15, the board of directors of Beer, Inc. declared a $0.20 per-share dividend on its common…

A: Date Account Titles and Explanation Debit Credit Mar'15 Dividend (18,000 shares X $ 0.20 per…

Q: On June 13, the board of directors of Siewert Inc. declared a 5% stock dividend on its 60 million,…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: Weaver Corporation had the following stock issued and outstanding at January 1, Year 1. 1. 98,000…

A: Tje dividend is paid to shareholders from the retained earnings of the business.

Q: Weaver Corporation had the following stock issued and outstanding at January 1, Year 1: 66,000…

A: Dividends are distributions of earnings by a corporation to its stockholders. Usually the…

Q: Sherry, Inc. had 140,000 shares of $5 par value common stock issued and outstanding as of December…

A: No. of shares issued under stock dividend = Number of outstanding shares x 40% = 140,000 shares x…

Q: The board of directors of Capstone Inc. declared a $0.60 per share cash dividend on its $1 par…

A: Dividend is the disbursement of profit in consideration to the shares purchased by the shareholders.

Q: On Thursday, May 18, the board of directors of ABC declares a 30-cent-per-share dividend to…

A: On Thursday, May 18, the board of directors of ABC declares a 30-cent-per-share dividend to…

Q: Assume that the Board of Directors of ABC Corporation meets on April 1 and declares a dividend of…

A: Assume that the Board of Directors of ABC Corporation meets on April 1 and declares a dividend of…

Q: Windsor, Inc. has 46,000 shares of $10 par value common stock outstanding. It declares a 13% stock…

A: Number of shares issued as stock dividend = 46,000 shares x 13% = 5,980 shares

Q: Milton Company’s charter authorizes 1,000,000 shares of common stock and 400,000 shares of preferred…

A: Stockholders’ equity: The claims of owners on a company’s resources, after the liabilities are paid…

Q: Langley Corporation has 57,000 shares of $11 par value common stock outstanding. It declares a 15%…

A: Dividend :- This can be best understood with the help of an illustration. A person with surplus…

Q: On October 1, Oriole Corporation's stockholders' equity is as follows. Common stock, $7 par value…

A: Stock dividend means when shares of the company are issued by way of dividend to the shareholders.…

Q: Almond, Inc held its quarterly dividend meeting on December 8. At that time, the directors declared…

A: Dividend payable = No. of shares * Dividend per share

Q: The stockholders’ equity of TVX Company at the beginning of the day on February 5 follows.…

A: Stock dividend is a method of capitalizing the retained earning. Under this, no profit is…

Q: Journalize the entries needed on the declaration and payment dates.

A: Journal entry: It is a systematic record of a financial transaction of an organization recorded in…

Q: On June 13, the board of directors of Siewert Inc. declared a 5% stock dividend on its 40 million,…

Q: Knapp Industries began business on January 1, 2018 by issuing all of its 1,000,000 authorized shares…

A: The purchase of own shares is known as treasury stock.

Q: Weaver Corporation had the following stock issued and outstanding at January 1, Year 1: 66,000…

A: Definition: Dividends: This is the amount of cash distributed to stockholders by a company out its…

Q: Alpha Corporation has 25 million shares of common stock issued and outstanding. On August 31 the…

A: Payment of dividend out of profits indicate that the dividends are distributed out of retained…

Q: Nowell Inc. had the following stock issued and outstanding at January 1, Year 2. 1. 150,000 shares…

A: The dividend paid to the preference holders is the product of the par value of preference capital,…

Q: On June 30, Sharper Corporation’s stockholders' equity section of its balance sheet appears as…

A: Dividend means the amount given to shareholder of the company as profit distribution by company.…

Q: Provide the following journal entry- On Jan 1. ABC Corp declared a 50 cent dividend to stockholders.…

A: Given that ABC Corp : 50000 shares outstanding declared dividend = 50%

Q: Belkin Inc. has 100,000 shares of $3 par value common stock outstanding. Belkin declares a 40% stock…

A: Amount for Stock dividend = No. of shares outstanding x Stock dividend rate x Par value per share =…

Q: The stockholders’ equity of TVX Company at the beginning of the day on February 5 follows: Common…

A: Stock Dividends: It refers to the payment of dividends by a company to its existing shareholders, in…

Q: On January 1. 2021, Novak Corp. had 502,000 shares of common stock outstanding. During 2021, it had…

A: Solution:- Weighted average number of shares outstanding as of December 31, 2021 Transaction…

Q: On October 1, Kosko Corporation’s stockholders’ equity is as follows. Common stock, $5 par value…

A: The stock dividend is a method of capitalizing retained earnings. Under the stock dividend, no…

Q: The stockholders' equity of TVX Company at the beginning of the day on February 5 follows. Common…

A: Stock dividend is a method of capitalizing the retained earning. Under this, no profit is…

Q: On June 30, the board of directors of Sandals, Inc., declares and pays a 100% stock dividend on its…

A: Large stock dividend: A stock dividend is considered to be large if new shares issued as stock…

Q: Knapp Industries began business on January 1, 2018 by issuing all of its 1,000,000 authorized shares…

A: Journal Entry - It is record of every business transaction whether it economic or non economic for a…

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Nutritious Pet Food Companys board of directors declares a cash dividend of $1.00 per common share on November 12. On this date, the company has issued 12,000 shares but 2,000 shares are held as treasury shares. The company pays the dividend on December 14. What is the journal entry to record the payment of the dividend?
Spring Company is authorized to issue 500,000 shares of $2 par value common stock. In its first year, the company has the following transactions: Journalize the transactions and calculate how many shares of stock are outstanding at August 3.
Nutritious Pet Food Companys board of directors declares a large stock dividend (50%) on June 30 when the stocks market value per share is $30. At that time, there are 10,000 shares of $1 par value common stock outstanding (none held in treasury). What is the journal entry to record the declaration of the dividend?
Nutritious Pet Food Companys board of directors declares a cash dividend of $5,000 on June 30. At that time, there are 3,000 shares of $5 par value 5% preferred stock outstanding and 7,000 shares of $1 par value common stock outstanding (none held in treasury). What is the journal entry to record the declaration of the dividend?
Fortuna Company is authorized to issue 1,000,000 shares of $1 par value common stock. In its first year, the company has the following transactions: Journalize the transactions and calculate how many shares of stock are outstanding at August 3.
Stockholders' Equity section of balance sheet The following accounts and their balances appear in the ledger of Goodale Properties Inc. on June 30 of the current year: Prepare the Stockholders Equity section of the balance sheet as of June 30. Eighty thousand shares of common stock are authorized, and 9,000 shares have been reacquired.
Nutritious Pet Food Companys board of directors declares a large stock dividend (50%) on June 30 when the stocks market value per share is $30. At that time, there are 10,000 shares of $1 par value common stock outstanding (none held in treasury). What is the journal entry to record the stock dividend distribution on July 31?
Ammon Company is authorized to issue 500,000 shares of $5 par value preferred stock. In its first year, the company has the following transaction: Mar. 1, issued 40,000 shares of preferred stock at $20.50 per share. Journalize the transaction.
Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. Open the file STOCKEQ from the website for this book at cengagebrain.com. Enter the formulas in the appropriate cells on the worksheet. Then fill in the columns to show the effect of each of the selected transactions and events listed earlier. Enter your name in cell A1. Save the completed worksheet as STOCKEQ2. Print the worksheet. Also print your formulas. Check figure: Total stockholders equity balance at 12/31/12 (cell G21). 398,800.
Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. In the space provided below, prepare the stockholders equity section of Chen Corporations balance sheet as of December 31, 2012. Use proper headings and provide full disclosure of all appropriate information. Chens corporate charter authorizes the issuance of 1,000 shares of preferred stock and 100,000 shares of common stock.
Jupiter Corporation earned net income of $90,000 this year. The company began the year with 600 shares of common stock and issued 500 more on April 1. They issued $5,000 in preferred dividends for the year. What is Jupiter Corporations weighted average number of shares for the year?
Silva Company is authorized to issue 5,000,000 shares of $2 par value common stock. In its IPO, the company has the following transaction: Mar. 1, issued 500,000 shares of stock at $15.75 per share for cash to investors. Journalize this transaction.