Chapter 13, Problem 4PSB

1. Journal Entries to record Stockholders Equity Transactions.
To determine

Concept Introduction:

Cash Dividend:

Cash Dividend refers to share of profits divided among shareholders in the form of cash.

Requirement 1

No of outstanding shares on date of each dividend date

Dollar amount of Each Cash Dividend.

To determine

Concept Introduction:

Cash Dividend:

Cash Dividend refers to share of profits divided among shareholders in the form of cash.

Requirement 2

Dollar Amount of Each Cash Dividend

Amount of Stock dividend to be capitalised.

To determine

Concept Introduction:

Stock Dividend:

Stock Dividend refers to stocks issued of a certain percentage of quantity, at current market price.

Requirement 3

Amount of Stock Dividend to be Capitalised.

Cost price per Treasury Stock

To determine

Concept Introduction:

Treasury Stock:

Treasury Stock is stock which has been purchased by the company.

Requirement 4

Cost price per Treasury Stock

Net Income

To determine

Concept Introduction:

Net Income is amount of Gains made by the organisation of amount of Revenue over expenses.

Requirement 4

Net Income Earned during the year.