Guoping Limited provides you with the following condensed balance sheet

Guoping Limited provides you with the following condensed balance sheet information:
Guoping Limited provides you with the following condensed balance sheet

Instructions
(a). For each transaction below, indicate the dollar impact (if any) on the following five items: (1) total assets, (2) common shares, (3) contributed surplus, (4) retained earnings, and (5) shareholders€™ equity. (Each situation is independent.)
1. The company declares and pays a $0.50 per share dividend.
2. The company declares and issues a 10% stock dividend when the shares€™ market price is $12 per share.
3. The company declares and issues a 40% stock dividend when the shares€™ market price is $17 per share.
4. The company declares and distributes a property dividend. The company gives one Geneva share for every two company shares held. Geneva is selling for $12 per share on the date when the property dividend is declared.
5. The company declares a 3-for-1 stock split and issues new shares.
(b). What are the differences between a stock dividend and a cash or property dividend?

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...
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...

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