Dai Corporation has outstanding $2 million no par value common shares that were issued at $10 per
Question:
Oct. 31, 2012 ................ $31
Nov. 30, 2012 .................33
Dec. 31, 2012 ................38
Average price over the two-month period .....35
Instructions
(a). Prepare a journal entry to record the cash dividend.
(b). Prepare a journal entry to record the stock dividend.
(c). Prepare the shareholders’ equity section (including a schedule of retained earnings) of the company balance sheet for the year 2012 based on the information given. Write a note to the financial statements that states the accounting basis for the stock dividend and include separate comments on why this basis was chosen.
(d). Prepare a statement of changes in shareholders’ equity for the year 2012. Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...
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Related Book For
Intermediate Accounting
ISBN: 978-0470161012
9th Canadian Edition, Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.
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