Question: 3 part question, answer all 3. 1 2 3 Answer all 3 parts The stockholders' equity section of Jun Company's balance sheet as of April
3 part question, answer all 3.
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2
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Answer all 3 parts
The stockholders' equity section of Jun Company's balance sheet as of April 1 follows. On April 2 , Jun declares and distributes a 10% stock dividend. The stock's per share market value on April 2 is $15 (prior to the dividend). Prepare the stockholders' equity section immediately after the stock dividend is distributed. Stockholders' equity of Ernst Company consists of 93,000 shares of $5 par value, 9% cumulative preferred stock and 345,000 shares of $1 par value common stock. Both classes of stock have been outstanding since the company's inception. Ernst did not declare any dividends in the prior year, but it now declares and pays a $135,000 cash dividend at the current year-end. Determine the amount distributed to each class of stockholders for this two-year-old company. For each transaction, determine the Impact-Increase, decrease, or no effect-on total assets, total llabilttles, and total equity
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