Rich Ltd. declares a 3 for 1 stock split on its class A common shares. There are 12,000,000 shares authorized and 6,000,000 shares outstanding. The book value of each share at the time of the declaration is $12 and the quoted market value in the Toronto newspapers is $16. The entry to record the split should: None of these Debit some other shareholders equity account Debit retained earnings Debit a liability account Credit retained earnings no handwritten

Rich Ltd. declares a 3 for 1 stock split on its class A common shares. There are 12,000,000 shares authorized and 6,000,000 shares outstanding. The book value of each share at the time of the declaration is $12 and the quoted market value in the Toronto newspapers is $16. The entry to record the split should: None of these Debit some other shareholders equity account Debit retained earnings Debit a liability account Credit retained earnings no handwritten

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 4MC: Effective May 1, the shareholders of Baltimore Corporation approved a 2-for-1 split of the companys...

See similar textbooks

Similar questions

A corporation, which had 24,100 shares of common stock outstanding, declared a 5-for-1 stock split. a. What will be the number of shares outstanding after the split? b. If the common stock had a market price of $215 per share before the stock split, what would be an approximate market price per share after the split? c. Journalize the entry to record the stock split. If no entry is required, type "No Entry" and leave the amount boxes blank. - Select - - Select - - Select - - Select -
A corporation, which had 39,700 shares of common stock outstanding, declared a 3-for-1 stock split. a. What will be the number of shares outstanding after the split? shares b. If the common stock had a market price of $123 per share before the stock split, what would be an approximate market price per share after the split? per share c. Journalize the entry for the stock split. If no entry is required, type "No Entry Required" and leave the amount boxes blank. If an amount box does not require an entry, leave it blank.
A corporation that had 26,200 shares of common stock outstanding declared a 5-for-1 stock split. a. What will be the number of shares outstanding after the split? shares b. If the common stock had a market price of $175 per share before the stock split, what would be an approximate market price per share after the split? S per share c. Journalize the entry for the stock split. If no entry is required, type "No Entry Required" and leave the amount boxes blank. Debit Credit Account 019 RENTALS SCR... 10
Porter Hardware Pty Ltd issues ordinary shares for $6. Which of the following is true? a. $6 per share is presented on the statement of financial position in the ordinary shares account b. Liabilities will increase as a result of this transaction c. $6 per share is the maximum selling price for these shares d. $6 in dividends will be paid to the shareholders as a result of this transaction
Assume that Bennington Corporation has 2,000,000 shares of $1 par value common stock issued and outstanding. The company is authorized to issue 10 million shares. Due to increased share prices, the corporation decided to implement a 2-for-1 stock split. Prepare the journal entries required on the declaration and distribution of the stock split. (Record debits first, then credits. Exclude explanations from any journal entries. If no entry is required, select "No Entry Required" on the first line of the Account column and leave all other cells blank.) Account Current Year
A corporation that had 28,000 shares of common stock outstanding declared a 4-for-1 stock split. a. What will be the number of shares outstanding after the split? shares b. If the common stock had a market price of $92 per share before the stock split, what would be an approximate market price per share after the split? per share c. Journalize the entry for the stock split. If no entry is required, type "No Entry Required" and leave the amount boxes blank. Debit Credit Account
The following note related to equity was reported in Jinpain International's (CHN) annual report. On February 1, the Board of Directors declared a 2-for-1 share split, distributed on February 25 to shareholders of record on February 10. Accordingly, all numbers of common (ordinary) shares, except unissued shares and treasury shares, and all per share data have been restated to reflect thisshare split.Instructionsa. What is the significance of the date of record and the date of distribution?b. Why might Jinpain have declared a 2-for-1 for share split?c. What impact does Jinpain's share split have on (1) total equity, (2) total par value, (3)outstanding shares, and (4) book value per share? Explain it.
A corporation, which had 36,700 shares of common stock outstanding, declared a 5-for-1 stock split. Question Content Area a. What will be the number of shares outstanding after the split?fill in the blank 6d98aa0e7fb202d_1 shares b. If the common stock had a market price of $190 per share before the stock split, what would be an approximate market price per share after the split?$fill in the blank 6d98aa0e7fb202d_2 per share Question Content Area c. Journalize the entry for the stock split. If no entry is required, type "No Entry Required" and leave the amount boxes blank. If an amount box does not require an entry, leave it blank. blank - Select - - Select - - Select - - Select -
Nexis Corp. issues 2,470 shares of $11 par value common stock at $16 per share. When the transaction is recorded, credits are made to a.Common Stock, $12,350 and Retained Earnings, $27,170. b.Common Stock, $12,350 and Paid-In Capital in Excess of Stated Value, $27,170. c.Common Stock, $39,520. d.Common Stock, $27,170, and Paid-In Capital in Excess of Par—Common Stock, $12,350.
Concordia Corporation has 96,900 common shares that have been issued. It declares a 4% stock dividend on December 1 to shareholders of record on December 20. The shares are issued on January 10. The share price is $15 on December 1, $14.50 on December 20, and $14.75 on January 10. a) Calculate the dollar amount of the stock dividend. (Do not use $ signs or commas in your answer. Do not round intermediary calculations. Only round final answers to 2 decimal places ex: 5.25) QUESTION 40 Dividends - Optional
At the time that Kirby Company issued a 3-for-1 stock split, the company had 1,000 shares of $12 par value common stock outstanding. Stockholders' equity also included $21,000 of paid in capital in excess of par value–common and $30,000 of retained earnings. Which of the following statements regarding the impact of the stock split is true? a. The number of outstanding shares of common stock will be 36,000. b. The amount of paid-in capital in excess of par–common will become $21,000. c. The balance in the retained earnings account will become $10,000. d. The balance of the common stock account will be $12,000.
On June 13, the board of directors of Siewert Inc. declared a 2-for-1 stock split on its 80 million, $1.00 par, common shares, to be distributed on July 1. The market price of Siewert common stock was $22 on June 13. Prepare a journal entry that summarizes the declaration and distribution of the stock split if it is to be effected in the form of a 100% stock dividend. What is the par per share after the split? Answer is not complete. Complete this question by entering your answers in the tabs below. General Journal Prepare a journal entry that summarizes the declaration and distribution of the stock split if it is to be effected in the form of a 100% stock dividend. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) No 1 Par value Event 1 No journal entry required Par value General Journal Par value > On June 13, the board of directors of Siewert…