On January 31, 2018, EFG Corporation's stockholders' equity section shows the following balances. EFG Corporation Balance...

Transcribed Image Text:

On January 31, 2018, EFG Corporation's stockholders' equity section shows the following balances. EFG Corporation Balance Sheet (partial) As at January 31, 2018 Stockholders' Equity Paid-In Capital $68,000 Common shares, $2 par value, unlimited shares authorized, 34,000 shares issued and outstanding Additional Paid-In Capital $380,000 Total Paid-In Capital $448,000 Retained Earnings $740,000 Total Stockholders' Equity $1,188,000 Do not enter dollar signs or commas in the input boxes. Scenario 1 On January 31, 2018, after preparing the Iders' equity section shown above, the company declared and immediately distributed a 80% stock dividend. The market price on the date of declaration was $6. The company recorded the stock dividends by debiting retained earnings. a) Calculate the ending balance of retained earnings after the stock dividend. EFG Corporation Calculation of Retained Earnings For the Month Ended January 31, 2018 Opening Balance 740000 Less: Stock Dividend 95200 Balance - January 31, 2018 b) Prepare the stockholders' equity section of balance sheet as at January 31, 2018 (after the stock dividend has been distributed). EFG Corporation Balance Sheet (partial) As at January 31, 2018 Stockholders' Equity Paid-In Capital Common shares, $2 par value, unlimited shares authorized, 61,200 shares issued and outstanding Additional Paid-In Capital Total Paid-In Capital Retained Earnings Total Stockholders' Equity Scenario 2 On January 31, 2018, after preparing the stockholders' equity section shown at the beginning of this question (excluding Scenario 1), the company implemented a 2-for-1 stock split. a) Calculate the number of outstanding shares. Outstanding shares: shares b) Prepare the stockholders' equity section of the balance sheet as at January 31, 2018 (after the stock split). EFG Corporation Balance Sheet (partial) As at January 31, 2018 Stockholders' Equity Paid-In Capital Common shares, $1 par value, unlimited shares authorized, x shares issued and outstanding Additional Paid-In Capital Total Paid-In Capital Retained Earnings Total Stockholders' Equity On January 31, 2018, EFG Corporation's stockholders' equity section shows the following balances. EFG Corporation Balance Sheet (partial) As at January 31, 2018 Stockholders' Equity Paid-In Capital $68,000 Common shares, $2 par value, unlimited shares authorized, 34,000 shares issued and outstanding Additional Paid-In Capital $380,000 Total Paid-In Capital $448,000 Retained Earnings $740,000 Total Stockholders' Equity $1,188,000 Do not enter dollar signs or commas in the input boxes. Scenario 1 On January 31, 2018, after preparing the Iders' equity section shown above, the company declared and immediately distributed a 80% stock dividend. The market price on the date of declaration was $6. The company recorded the stock dividends by debiting retained earnings. a) Calculate the ending balance of retained earnings after the stock dividend. EFG Corporation Calculation of Retained Earnings For the Month Ended January 31, 2018 Opening Balance 740000 Less: Stock Dividend 95200 Balance - January 31, 2018 b) Prepare the stockholders' equity section of balance sheet as at January 31, 2018 (after the stock dividend has been distributed). EFG Corporation Balance Sheet (partial) As at January 31, 2018 Stockholders' Equity Paid-In Capital Common shares, $2 par value, unlimited shares authorized, 61,200 shares issued and outstanding Additional Paid-In Capital Total Paid-In Capital Retained Earnings Total Stockholders' Equity Scenario 2 On January 31, 2018, after preparing the stockholders' equity section shown at the beginning of this question (excluding Scenario 1), the company implemented a 2-for-1 stock split. a) Calculate the number of outstanding shares. Outstanding shares: shares b) Prepare the stockholders' equity section of the balance sheet as at January 31, 2018 (after the stock split). EFG Corporation Balance Sheet (partial) As at January 31, 2018 Stockholders' Equity Paid-In Capital Common shares, $1 par value, unlimited shares authorized, x shares issued and outstanding Additional Paid-In Capital Total Paid-In Capital Retained Earnings Total Stockholders' Equity

Answer rating: 100% (QA)

Answer Solution Senario 1 a Calculation of ending balance of retained earnings after stock dividend ... View the full answer