On October 31, the stockholders' equity section of Carla Vista Company consists of common stock $345,000...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On October 31, the stockholders' equity section of Carla Vista Company consists of common stock $345,000 and retained earnings $899,000. Carla Vista is considering the following two courses of action: (1) declaring a 6% stock dividend on the 34,500, $10 par value shares outstanding, or (2) effecting a 2-for-1 stock split that will reduce par value to $5 per share. The current market price is $15 per share. Prepare a tabular summary of the effects of the alternative actions on the components of stockholders' equity, outstanding shares, and par value per share. Stockholders' equity Paid-in capital Common stock In excess of par Total paid-in capital Retained earnings Total stockholders' equity Outstanding shares Par value per share Before Action +A After Stock Dividend tA After Stock Split On October 31, the stockholders' equity section of Carla Vista Company consists of common stock $345,000 and retained earnings $899,000. Carla Vista is considering the following two courses of action: (1) declaring a 6% stock dividend on the 34,500, $10 par value shares outstanding, or (2) effecting a 2-for-1 stock split that will reduce par value to $5 per share. The current market price is $15 per share. Prepare a tabular summary of the effects of the alternative actions on the components of stockholders' equity, outstanding shares, and par value per share. Stockholders' equity Paid-in capital Common stock In excess of par Total paid-in capital Retained earnings Total stockholders' equity Outstanding shares Par value per share Before Action +A After Stock Dividend tA After Stock Split
Expert Answer:
Answer rating: 100% (QA)
The working is shown below Before Action After Stock Dividend After stock sp... View the full answer
Related Book For
Financial and managerial accounting
ISBN: 978-1118016114
1st edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Posted Date:
Students also viewed these accounting questions
-
On October 31, the stockholders equity section of Blossom Companys balance sheet consists of common stock $320,000 and retained earnings $390,000. Blossom is considering the following two courses of...
-
On October 31 the stockholders equity section of Lynch Companys balance sheet consists of common stock $648,000 and retained earnings $400,000. Lynch is considering the following two courses of...
-
On October 31, the stockholders equity section of Pele Companys balance sheet consists of common stock $648,000 and retained earnings $400,000. Pele is considering the following two courses of...
-
1) Identify a Major Global Company 2) Provide a brief History of the Company and what it does. 3) Identify their top three (3) Tier 1 Suppliers - Explain what they supply, where they are located and...
-
The lowering of barriers to trade and investment between countries within a trade group will probably is followed by increased price competition. Do you agree? Why? Why not?
-
Use Lagrange's equations to drive the differential equations governing the motion of the systems shown in Figures P7.15. Use the indicated generalized coordinates. Make linearizing assumptions, and...
-
The W12 \(\times 87\) structural A-36 steel column has a length of \(12 \mathrm{ft}\). If its bottom end is fixed supported while its top is free, determine the largest axial load it can support. Use...
-
EyePod Corporation produces two types of compact discs: standard and high-grade. The standard CDs are used primarily in computer drives and are designed for data storage rather than accurate sound...
-
Explain the concept of paging in virtual memory. How do page tables work, and what are the differences between single-level and multi-level page tables in terms of memory usage and translation...
-
1. What is the cost of debt for Sunrise Bakery? 2. What is their cost of equity? 3. What is the WACC? 4. Which cost of capital should be used to evaluate the feasibility of the oven purchase? 5....
-
There is a bond on a companys books with an original term of 10 years that was purchased for a premium at its issuance, just over 2 years ago. The bond pays semi-annual interest. With the receipt of...
-
Identify a personal economic decision that was driven by a behavioral bias rather than by pure rational behavior. Given your understanding of behavioral economics, how would your decision differ...
-
Gamma Corporation sold the following property on March 3 of the current year. Securities Selling price Cost $ 65.000 $100,000 Accumulated depreciation Adjusted basis Gain (loss) $100,000 S (35.000) $...
-
Suppose a company incurs the following costs: Labor $800 Equipment $400 Materials $300 It owns the building, so it doesnt have to pay the usual $900 in rent. (a) What is the total accounting cost?...
-
Preparing a Job Order Cost Sheet Riverwood Accounting Company has the following account in its cost records: Direct labor Work in Process-Jones Audit 140,000 Services completed 295,771 Project...
-
What is behavioral targeting? How can it be used to exploit business opportunities? What ethical problems can arise from behavioral targeting on the internet? How can combining ethics and psychology...
-
Determine the balance in Jamie Lee's checkbook register below. Use this total along with the information from Jamie Lee's bank statement to reconcile her checkbook register with her bank statement....
-
An example of prescriptive analytics is when an action is recommended based on previously observed actions. For example, an analysis might help determine procedures to follow when new accounts are...
-
Using the data in Question 17, what are (a) The total cost of work in process and (b) The cost of goods manufactured?
-
On December 31, 2013, Ogallala Associates owned the following securities, held as a long-term investment. The securities are not held for influence or control of the investee. On December 31, 2013,...
-
On January 2, 2013, Benson Hospital purchased a $100,000 special radiology scanner from Picard Inc. The scanner had a useful life of 4 years and was estimated to have no disposal value at the end of...
-
A thin stainless steel disk of thickness \(b\) and outer radius \(r_{o}\) has been heat treated to a high, uniform initial temperature of \(T_{i}\). The disk is then placed upon a small stand and...
-
A power transistor mounted on a finned heat sink can be modeled as a spatially isothermal object with internal heat generation and an external convection resistance. (a) Consider such a system of...
-
Steel balls \(10 \mathrm{~mm}\) in diameter are annealed by heating to \(1150 \mathrm{~K}\) and then slowly cooling to \(450 \mathrm{~K}\) in an air environment for which \(T_{\infty}=325...
Study smarter with the SolutionInn App