A firm has the following items on its balance sheet:

A firm has the following items on its balance sheet: Cash $ 20,000,000 Inventory $134,000,000 Notes payable to bank $ 31,500,000 Common Stock ($10 par; 1,000,000 shares outstanding) $ 10,000,000 Retained earnings $ 98,000,000 Describe how each of these accounts would appear after:
a) A cash dividend of $1 per share
b) A 10 percent stock dividend (fair market value of stock is $13 per share)
c) A 3-for-1 stock split
d) A 1-for-2 reverse stock split
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
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...


  • Access to 1 Million+ Textbook solutions
  • Ask any question from 24/7 available


Get help from Cost Accounting Tutors
Ask questions directly from Qualified Online Cost Accounting Tutors .
Best for online homework instance.