9th Edition

ISBN: 9781259222139

Author: Robert Libby, Patricia Libby, Frank Hodge Ch

Publisher: McGraw-Hill Education

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The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The sto…

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Textbook Question

Chapter 11, Problem 11.1CON

Recording and Reporting Stockholders’ Equity Transactions

Pool Corporation, Inc., is the world’s largest wholesale distributor of swimming pool supplies and equipment. It is a publicly traded corporation that trades on the NASDAQ exchange under the symbol POOL. The majority of Pool’s customers are small, family-owned businesses. The company issued the following press release:

COVINGTON, La., March 2, 2015 (GLOBE NEWSWIRE)—Pool Corporation (Nasdaq: POOL) announced today that its Board of Directors declared a quarterly cash dividend of $0.22 per share. The dividend will be payable on March 26, 2015. to holders of record on March 12, 2015.

The Company also announced in its 2014 Annual Report that it had repurchased $132.3 million of its common stock in the open market.

Required:

1. Record the repurchase of shares by Pool assuming all shares were repurchased at one time.
2. Prepare all necessary entries associated with the dividend. Assume that at the time of the dividend. Pool was authorized to issue 100 million shares and had 43 million shares outstanding.

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Chapter 11, Problem 11.4AP

Chapter 11, Problem 1ACOMP

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Chapter 11 Solutions

Financial Accounting

Ch. 11 - Prob. 1Q Ch. 11 - Prob. 2Q Ch. 11 - Explain each of the following terms: (a)...Ch. 11 - Differentiate between common stock and preferred...Ch. 11 - Explain the distinction between par value and...Ch. 11 - Define additional paid-in capital.Ch. 11 - Prob. 7Q Ch. 11 - Define treasury stock. Why do corporations acquire...Ch. 11 - How is treasury stock reported on the balance...Ch. 11 - What are the two basic requirements to support the...

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Solution Summary: The author explains that dividends are the rewards to the stockholders for investing their money in the company.

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