Gutsy Company provides you with the following condensed balance sheet information. Instructions For each transaction below, indicate
Question:
Instructions
For each transaction below, indicate the dollar impact (if any) on the following five items:
(1) Total assets,
(2) Common stock,
(3) Paid-in capital in excess of par,
(4) Retained earnings, and
(5) Stockholders equity. (Each situation is independent.)
(a) Gutsy declares and pays a $0.50 per share cash dividend.
(b) Gutsy declares and issues a 10% stock dividend when the market price of the stock is $14 per share.
(c) Gutsy declares and issues a 40% stock dividend when the market price of the stock is $15 per share.
(d) Gutsy declares and distributes a property dividend. Gutsy gives one share of ABC stock for every two shares of Gutsy Company stock held. ABC is selling for $10 per share on the date the property dividend is declared.
(e) Gutsy declares a 2-for-1 stock split and issues newshares.
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... 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...
Step by Step Answer:
Intermediate Accounting principles and analysis
ISBN: 978-0471737933
2nd Edition
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso