Question: On May 1 , 2 0 2 2 , Baby Corp. declared and issued a 6 0 % common stock dividend. Prior to this dividend,

On May 1,2022, Baby Corp. declared and issued a 60% common stock dividend. Prior to this dividend, Baby had 100,000
shares of $1 par value common stock issued and outstanding. The fair value of Baby's common stock was $20 per share on
May 1,2022. As a result of this stock dividend, Baby's Retained Earnings
a. did not change.
b. decreased by $60,000.
c. decreased by $100,000
d. decreased by $1,200,000.
e. the correct answer is not an option.
On May 1,2022, Baby Corp. declared and issued a 60% common

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
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!

Q:

Hortonville has a new grocery store. Gilbert's Sentry, a new $3 million, 20,000-square-foot store is actually a relocation of a store (Gilbert's SuperValu Foods) previously located on Black Otter...

Q:

Patty Zeema, controller at Sabbie Fashion Inc., a public company has provided selected financial data for the fiscal year ended December 31, 2019. Long-term debt 6% convertible bonds payable due 2021...

Q:

i have 30 min time limit please help Assignments: CONCEPTUAL FRAI X Assignments: CONCEPTUAL FRAN X Question 1 - Acctg for Corpo. -M X Homework Help - Q&A from Onl X + X C D...

Q:

i have 30 min time limit please help Assignments: CONCEPTUAL FRAI X Assignments: CONCEPTUAL FRAN X Question 1 - Acctg for Corpo. -M X Homework Help - Q&A from Onl X + X C D...

Q:

i have 30 min time limit please help Assignments: CONCEPTUAL FRAI X Assignments: CONCEPTUAL FRAN X Question 1 - Acctg for Corpo. -M X Homework Help - Q&A from Onl X + X C D...

Q:

On May 1 , 2 0 2 4 , Baby Corp. declared and issued a 6 0 % common stock dividend. Prior to this dividend, Baby had 1 0 0 , 0 0 0 shares of $ 1 par value common stock issued and outstanding. The fair...

Q:

Please include the journal entry 1. Close out the 2017 Income Statement Accounts into retained earnings. And close out Unrealized holding gain or loss - income into Accumulated other comprehensive...

Q:

Question 13) (22.75 marks) Lebo Corp. had 120,000 common shares outstanding on January 1, 2027. On March 1, 2027, Lebo Corp. issued an additional 60,000 common shares. On April 1, 2027, Lebo Corp....

Q:

2.Prior period adjustments are reported in the: Multiple-step income statement. Balance sheet. Statement of retained earnings. Statement of cash flows. Single-step income statement. 3. A corporation...

Q:

PLEASE ANSWER ALL QUESTIONS OR DO NOT ANSWER THEM AT ALL!!! WILL GIVE THUMBS UP IF ALL ARE ANSWERED For questions 6-8, refer to the following information: Barnes Corp. has 22,000 shares outstanding...

Q:

read all carefully and show work if possible A corporation declared and issued a 20% stock dividend on October 1. The following information was available immediately prior to the dividend: Retained...

Q:

If the bond provides 11% nominal return to the investor in a year with 4% inflation, the investor's real return is 6.73%. Could you be kind and show in detail which formula was applied and how it was...

Q:

Using the data in Exercise 8-10, assume that the allowance for doubtful accounts for Fontaine Bikes Co. had a debit balance of $3,000 as at December 31, 2015. a. Journalize the adjusting entry for...

Q:

Consider a situation where there are only two scenarios exist a bear market and a bull market. Bear market is 0 . 3

Q:

A company issues 1,050 shares of its common stock for $33,600 cash. Prepare journal entries to record this event under each of the following separate situations.