FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- On January 1, 2021, Pina Corporation had 119000 shares of its $0.001 par value common stock outstanding. On November 27, when the market price of the stock was $9, the corporation declared a 10% stock dividend to be issued to stockholders of record on December 28, 2021. What was the impact of the 10% stock dividend on the balance of the retained earnings account? $11900 decrease O $107100 decrease No effect ○ $95200 decreasearrow_forwardOn October 1, 2021 Chief Corporation declared and issued a 10% stock dividend. Before this date, Chief had 80,000 shares of $5 par common stock outstanding. Te of Chief Corporation on the date of desiaration was $10 per share. As a result of this dividend, Chief's retained earnings willarrow_forwardMarigold Corp. had 307000 shares of common stock issued and outstanding at December 31, 2020. During 2021, no additional common stock was issued. On January 1, 2021, Marigold issued 395000 shares of nonconvertible preferred stock. During 2021, Marigold declared and paid $174000 cash dividends on the common stock and $154000 on the nonconvertible preferred stock. Net income for the year ended December 31, 2021, was $959000. What should be Marigold's 2021 earnings per common share, rounded to the nearest penny? $2.62 $3.12 $1.07 $2.06arrow_forward
- On January 1, 2021, Nash Corp. had 502,000 shares of common stock outstanding. During 2021, it had the following transactions that affected the Common Stock account. February 1 March 1 May 1 June 1 October 1 (a) Issued 125,000 shares Issued a 10% stock dividend Acquired 97,000 shares of treasury stock Issued a 3-for-1 stock split Reissued 62,000 shares of treasury stock * Your answer is incorrect. Determine the weighted-average number of shares outstanding as of December 31, 2021. The weighted-average number of shares outstanding 123083arrow_forwardOn January 1, 2021, Sue Company had 3,000,000 shares of its common stockissued and outstanding. Sue issued a 10% stock dividend on July 1, 2021. OnOctober 1, 2021, Sue retired 120,000 of its common shares. When calculating basicearnings per share for 2021, what is the appropriate number of shares for Sue touse in the denominator of the EPS fraction?arrow_forwardRitz Company had the following stock outstanding and Retained Earnings at December 31, 2021: $ 570,000 Common stock (par $1; issued and outstanding, 570,000 shares) Preferred stock, 9% (par $10; issued and outstanding, 21,700 shares) Retained Earnings 217,000 907,000 On December 31, 2021, the board of directors is considering the distribution of a cash dividend to the common and preferred stockholders. No dividends were declared during 2019 or 2020. Three independent cases are assumed: Case A: The preferred stock is noncumulative; the total amount of 2021 dividends would be $37,000. Case B: The preferred stock is cumulative; the total amount of 2021 dividends would be $37,000. Dividends were not in arrears prior to 2019. Case C: Same as Case B, except the amount is $82,000. Required: 1-a. Compute the amount of dividends in total payable to each class of stockholders if dividends were declared as described in each case. 1-b. Compute the amount of dividends per share payable to each…arrow_forward
- On June 30, 2020, when ABC shares were selling for $ 65 each, the equity accounts had the following balances: Common shares (par value $ 50: 50,000 issued) $ 2,500,000 Capital contributed in excess of par value 600,000 Retained earnings 4,200,000 A 100% share dividend is declared and distributed, the balance of the Common Shares account after recording the dividend will be: a. $2,500,000 b. $7,300,000 c. $3,100,000 d. $5,000,000arrow_forwardOn December 31, 2020, Brisbane Company had 100,000 shares of common stock outstanding and 30,000 shares of 7%, $50 par, cumulative preferred stock outstanding. On February 28, 2021, Brisbane purchased 24,000 shares of common stock on the open market as treasury stock paying $40 per share. Brisbane sold 6,000 treasury shares on September 30, 2021, for $45 per share. Net income for 2021 was $180,905. Also outstanding during the year were fully vested incentive stock options giving key officers the option to buy 50,000 common shares at $40. The market price of the common shares averaged $50 during 2021. Compute Brisbane's basic and diluted earnings per share (rounded to 2 decimal places) for 2021.arrow_forwardDarling Corporation issued 200,000 shares of $20 par value, 5% preferred stock on January 1, 2019, for $4,500,000. In December 2021, Darling declared its first dividend of $800,000. Part 1 Part 2 If the preferred stock is not cumulative, how much of the $800,000 would be paid to common stockholders? Common Stock Dividends $arrow_forward
- On November 1, 2020, Skysong, Inc’s stockholders’ equity section is as follows: Common stock, $10 par value $750,000 Paid-in capital in excess of par value—common stock 180,000 Retained earnings 270,000 Total stockholders’ equity $1,200,000 On November 1, Skysong declares and distributes a 15% stock dividend when the fair value of the stock is $18 per share.Indicate the balances in the stockholders’ equity accounts after the stock dividend has been distributed. Common stock $enter a dollar amount Paid-in capital in excess of par value—Common Stock enter a dollar amount Retained earnings enter a dollar amount Total stockholders’ equity $enter a total amount for this sectionarrow_forwardRitz Company had the following stock outstanding and Retained Earnings at December 31, 2021: Common stock (par $1; issued and outstanding, 400,000 shares) Preferred stock, 7% (par $10; issued and outstanding, 20,000 shares) Retained Earnings $ 400,000 200,000 890,000 On December 31, 2021, the board of directors is considering the distribution of a cash dividend to the common and preferred stockholders. No dividends were declared during 2019 or 2020. Three independent cases are assumed: Case A: The preferred stock is noncumulative; the total amount of 2021 dividends would be $20,000. Case B: The preferred stock is cumulative; the total amount of 2021 dividends would be $20,000. Dividends were not in arrears prior to 2019. Case C: Same as Case B, except the amount is $65,000. Required: 1-a. Compute the amount of dividends in total payable to each class of stockholders if dividends were declared as described in each case. 1-b. Compute the amount of dividends per share payable to each…arrow_forward
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