Question: In the Owl Co. entry to record the declaration and issuance of a common stock dividend of 15,000 shares when there are 50,000 common

In the Owl Co. entry to record the declaration and issuance of

In the Owl Co. entry to record the declaration and issuance of a common stock dividend of 15,000 shares when there are 50,000 common stock shares outstanding before this declaration at $3 par and $50 market price, what is the increase to the Additional-Paid-In Capital Account? No Effect 80,000 1,880,000 2,000,000

Step by Step Solution

★★★★★

3.44 Rating (151 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Number of outstanding common shares 50000 Number of shares issued in the stock dividend 1500... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

What is a stock dividend? How does a common stock dividend distributed to common shareholders affect their respective ownership interests?

What is the value of a common stock if a). the firm's earnings and dividends are growing annually at 20 percent, the current dividend is $2.64, and investors require a 15 percent return on...

What is the duration of a common stock whose dividends are expected to grow at a constant rate in perpetuity?

Devona Enterprises began fiscal 2010 on January 1 with 1 million shares of common stock authorized and 300,000 shares issued and outstanding. The par value of the common stock is $ 0.50 per share and...

The Howland Carpet Company has grown rapidly during the past 5 years. Recently, its commercial bank urged the company to consider increasing its permanent financing. Its bank loan under a line of...

Merck & Co., Inc. , the global pharmaceutical company, included the income statements and balance sheets in Exhibit 12-12 in its 2011 annual report. Additional information includes the following:...

At the end of the 2003 annual reporting period, Potamia Corporation's balance sheet showed the following: During 2004, the following selected transactions (summarized) were completed: a. Sold and...

(Imputation of Interest) Presented below are two independent situations: (a) On January 1, 2011, Spartan Inc. purchased land that had an assessed value of $390,000 at the time of purchase. A...

At the end of the 2009 annual reporting period, El Paso Corporations balance sheet showed the following: EL PASO CORPORATION Balance Sheet At December 31, 2009 Stockholders Equity Contributed capital...

At the end of the 2010 annual reporting period, Zephyr Industries balance sheet showed the following: ZEPHYR INDUSTRIES Balance Sheet At December 31, 2010 Stockholders Equity Common stock (par $15;...

A farmer owned a dairy herd. At the start of the period the herd contained 100 animals that were two years old and 50 newly born calves. At the end of the period a further 30 calves had been born....

AN ASSET MANAGER WISHES TO ENTER INTO A TWO-YEAR EQUITY SWAP IN WHICH HE WILL RECEIVE THE RATE OF RETURN ON THE FTSE/JSE ALL SHARE INDEX (ALSI) IN EXCHANGE FOR PAYING A FIXED INTEREST RATE (SWAP...

Suppose B borrows 1 0 0 0 0 0 from land uses it to drill in an oil well. B hits a dry hole and looses the entire 1 0 0 0 0 0 investment. althogh B is solvent, L discharges 4 0 0 0 0 of debt. Journal...

What evidence led to the conclusion that cathode rays had a negative charge? Is there a difference between a cathode ray and a particle?

Explain the operation of a cathode-ray tube. Describe the deflection of cathode rays by electrically charged plates placed within the cathode-ray tube. What does this imply about cathode rays?

A professor of Education is interested in the relationship between students visits to office hours held by professors and their final grades in the course. She has obtained voluminous data from...

The concepts of accuracy and precision are not always easy to grasp. Here are two sets of studies: (a) The mass of a secondary weight standard is determined by weighing it on a very precise balance...

Tim is 37 years old and would like to establish a retirement plan. Develop a spreadsheet model that could be used to assist Tim with retirement planning. Your model should include the following input...

78.2% complete Question A multinational company discovered its existing cybersecurity policies were no longer adequate due to evolving cybersecurity threats and updated industry regulations. The...

COMMON AND PREFERRED CASH DIVIDENDS Wakui Company currently has 100,000 shares of $1 par common stock outstanding and 1,000 shares of $100 par preferred stock outstanding. On July 10, the board of...

(Multiple-Choice) 1. Which of the following is a characteristic of a corporation? a. No income tax b. Mutual agency c. Limited liability of stockholders d. Both a and b 2. Home Team, Inc., issues...

Concord Corp. completed the following transactions in 2013, the first year of operation: 1. Issued 30,000 shares of $10 par common stock for $15 per share. 2. Issued 6,000 shares of $100 par, 5...

Ashwood, Inc. is a public enterprise whose shares are traded in the over-the-counter market. At December 31, 2006 Ashwood had 6,000,000 authorized shares of $10 par value common stock , of which...

Concord Corp. completed the following transactions in 2014, the first year of operation: 1. Issued 30,000 shares of $10 par common stock for $15 per share. 2. Issued 6,000 shares of $100 par, 5...

COMMON AND PREFERRED CASH DIVIDENDS Ramirez Company currently has 100,000 shares of $1 par common stock outstanding and 5,000 shares of $50 par preferred stock outstanding. On July 10, the board of...