Question 22 (5 points)

 

Silver Corp. declares a 15% stock dividend to its shareholders on 1/18. On that date, the company had 15,000 shares issued and 12,000 shares outstanding. Silver Corp. common stock has a par value of $0.50 and a fair market value of $12.75. Silver Corp. distributed the stock the dividend to its shareholders on 1/22. On 2/12 Silver Corp. declares a 2 for 1 stock split.

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What journal entry will Silver Corp. record on 1/22, when the stock dividend is distributed?

Question 22 options:

Dr. Stock Dividend Distributable $900

   Cr. Dividends Payable $900

Dr. Stock Dividend Distributable $900

   Cr. Common Stock $900

N/A; No journal entry is required.

Dr. Dividend Expense $900

   Cr. Common Stock $900

Question 23 (4 points)

 

Silver Corp. declares a 15% stock dividend to its shareholders on 1/18. On that date, the company had 15,000 shares issued and 12,000 shares outstanding. Silver Corp. common stock has a par value of $0.50 and a fair market value of $12.75. Silver Corp. distributed the stock the dividend to its shareholders on 1/22. On 2/12 Silver Corp. declares a 2 for 1 stock split.

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What is the impact of distributing the stock dividend on Silver Corp.'s Net Income?

Question 23 options:

Silver Corp.'s Net Income will be reduced by $22,950.

Silver Corp.'s Net Income will be reduced by $21,150.

Silver Corp.'s Net Income will be reduced by $27,562.50

Silver Corp.'s Net Income will be reduced by $28,687.50.

Distributing a stock dividend does not impact net income.

Question 24 (5 points)

 

Silver Corp. declares a 15% stock dividend to its shareholders on 1/18. On that date, the company had 15,000 shares issued and 12,000 shares outstanding. Silver Corp. common stock has a par value of $0.50 and a fair market value of $12.75. Silver Corp. distributed the stock the dividend to its shareholders on 1/22. On 2/12 Silver Corp. declares a 2 for 1 stock split.

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What journal entry will Silver Corp. record on 2/12, when the stock split is declared?

Question 24 options:

Dr. Stock Dividend Distributable $6,000

   Cr. Dividends Payable $6,000

Dr. Stock Dividend Distributable $6,000

   Cr. Common Stock $6,000

Dr. Dividend Expense $6,000

   Cr. Common Stock $6,000

N/A; No journal entry is required.

Question 25 (4 points)

 

Silver Corp. declares a 15% stock dividend to its shareholders on 1/18. On that date, the company had 15,000 shares issued and 12,000 shares outstanding. Silver Corp. common stock has a par value of $0.50 and a fair market value of $12.75. Silver Corp. distributed the stock the dividend to its shareholders on 1/22. On 2/12 Silver Corp. declares a 2 for 1 stock split.

______________________

What is the impact of the stock split on Silver Corp.'s Net Income?

Question 25 options:

Silver Corp.'s Net Income will be reduced by $28,687.50.

Stock splits do not impact net income.

Silver Corp.'s Net Income will be reduced by $21,150.

Silver Corp.'s Net Income will be reduced by $27,562.50

Silver Corp.'s Net Income will be reduced by $22,950.