The Liabilities and Shareholder's Equity section of Simon Corporation's latest annual financial statements looks like this: Liabilities
Question:
The Liabilities and Shareholder's Equity section of Simon Corporation's latest annual financial statements looks like this: Liabilities and Equity Accounts payable $150,000 Notes payable 50,000 Common stock 100,000 shares 300,000 Retained earnings 500,000 1,000,000 The firm has earnings per share in the latest year of $0.50 and a price-earnings ratio of 20 times. Required: (Treat each of the following as independent questions.) a. Show the effect on the equity account(s) of a two-for-one stock split. Common stock shares $ Retained earnings $ b. Show the effect on the equity account of a 10 percent stock dividend. Part b is separate from part a. In part b, do not assume the stock split has taken place. Common stock shares $ Retained earnings $ c. Show the effect on the equity account of a $100,000 cash dividend. Part c is separate from part a and b. In part c, do not assume the stock split or the stock dividend has taken place.
Common stock shares $ Retained earnings $
Financial Accounting A User Perspective
ISBN: 978-0470676608
6th Canadian Edition
Authors: Robert E Hoskin, Maureen R Fizzell, Donald C Cherry