Wholegrain Health Foods Inc. is authorized to issue 5,000,000 common shares. In its initial public offering during
Question:
During the five years from 2010 through 2014, Wholegrain earned net income of $920,000 and declared and paid cash dividends of $140,000. A 10% stock dividend was distributed to the shareholders in 2014 on the shares outstanding. The market price was $8.00 per share when the stock dividend was distributed. At December 31, 2014, the company has total assets of $14,500,000 and total liabilities of $6,820,000.
Requirement
Show the computation of Wholegrain's total shareholders' equity at December 31, 2014. Present a detailed computation of each element of shareholders' equity.
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Related Book For
Financial Accounting
ISBN: 978-0133472264
5th Canadian edition
Authors: Charles Horngren, William Thomas, Walter Harrison, Greg Berberich, Catherine Seguin
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