The stockholders' equity section of the balance sheet for Heavenly Desserts Corporation on April 11, 2019,...

 

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The stockholders' equity section of the balance sheet for Heavenly Desserts Corporation on April 11, 2019, follows: (Click the icon to view the data.) On April 11, 2019, the market price of Heavenly Desserts common stock was $19 per share. Heavenly Desserts declared and distributed a 16% stock dividend on this date. Read the requirements. Requirement 1. Journalize the declaration and distribution of the 16% stock dividend. (Record debits first, then credits. Exclude explanations from any journal entries.) i Data Table Stockholders' Equity Common stock, $0.25 par, 2,400,000 shares authorized, 600,000 shares issued Paid-in capital in excess of par-common Retained earnings Accumulated other comprehensive income (loss) Total stockholders' equity Print Done $ - 150,000 1,291,520 7,250,000 (180,000) $ 8,511,520 i Requirements 1. Journalize the declaration and distribution of the stock dividend. 2. Prepare the stockholders' equity section of the balance sheet after the stock dividend. 3. Why is total stockholders' equity unchanged by the stock dividend? 4. Suppose Heavenly Desserts had a cash balance of $550,000 on April 12, 2019. What is the maximum amount of cash dividends the company can declare? ver. Print Done X The stockholders' equity section of the balance sheet for Heavenly Desserts Corporation on April 11, 2019, follows: (Click the icon to view the data.) On April 11, 2019, the market price of Heavenly Desserts common stock was $19 per share. Heavenly Desserts declared and distributed a 16% stock dividend on this date. Read the requirements. Requirement 1. Journalize the declaration and distribution of the 16% stock dividend. (Record debits first, then credits. Exclude explanations from any journal entries.) i Data Table Stockholders' Equity Common stock, $0.25 par, 2,400,000 shares authorized, 600,000 shares issued Paid-in capital in excess of par-common Retained earnings Accumulated other comprehensive income (loss) Total stockholders' equity Print Done $ - 150,000 1,291,520 7,250,000 (180,000) $ 8,511,520 i Requirements 1. Journalize the declaration and distribution of the stock dividend. 2. Prepare the stockholders' equity section of the balance sheet after the stock dividend. 3. Why is total stockholders' equity unchanged by the stock dividend? 4. Suppose Heavenly Desserts had a cash balance of $550,000 on April 12, 2019. What is the maximum amount of cash dividends the company can declare? ver. Print Done X

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