The stockholders equity section of Judson Company showed thefollowing:
Common Stock - $5 par value, 60,000 shares issued andoutstanding $300,000
Contributed Capital in excess of par value, common stock 900,000
Retained Earnings 800,000
Judson declared a 10% stock dividend on a day when the market valueof the stock was $15 per share. The stock dividend will:
Select one:
A. Decrease Retained Earnings by $300,000
B. Increase Contributed Capital in excess of par value, CommonStock by $60,000
C. Increase Common Stock by $100,000
D. Increase Total Contributed Capital by $90,000
The stockholders equity section of Judson Company showed thefollowing:
| Common Stock - $5 par value, 60,000 shares issued andoutstanding | $300,000 |
| Contributed Capital in excess of par value, common stock | 900,000 |
| Retained Earnings | 800,000 |
Judson declared a 10% stock dividend on a day when the market valueof the stock was $15 per share. The stock dividend will:
Select one:
A. Decrease Retained Earnings by $300,000
B. Increase Contributed Capital in excess of par value, CommonStock by $60,000
C. Increase Common Stock by $100,000
D. Increase Total Contributed Capital by $90,000
Related questions
Klug Corporation reported the following information at December31, 2013:
| Preferred stock, $10 par, 10,000 shares authorized, issued,and outstanding; cumulative; nonparticipating; callable at parvalue | $100,000 |
| Common stock, $1 par, 500,000 shares authorized | 100,000 |
| Additional paid-in capital - Common | 25,000 |
| Retained earnings | 75,000 |
| Total stockholders' equity | $300,000 |
The total paid in capital is:
Select one:
A. $250,000
B. $ 75,000
C. $225,000
D. $175,000
If a company issues 10,000 shares of $2 par value common stockat a market price of $30 per share, which of the following is thecorrect balance sheet entry?
Select one:
A. Increase cash by $300,000 and increase paid-in capital by$300,000
B. Increase common stock and cash by $20,000
C. Increase cash by $300,000 and increase retained earnings by$300,000
D. Increase revenues by $300,000
Winslow Corporation reported stockholders' equity on December 31of the prior year as follows:
Common stock, $5 par value, 1,000,000 shares authorized, 500,000shares issued | $2,500,000 |
Paid-in capital in excess of par, common stock | 1,000,000 |
Retained earnings | 3,140,000 |
The following selected transactions occurred during the currentyear:
Jan 17 | Retained Earnings | 400,000 | |
Common Dividend Payable | 400,000 | ||
Feb 5 | Common Dividend Payable | 400,000 | |
Cash | 400,000 | ||
Feb 28 | Retained Earnings | 300,000 | |
Common Stock Dividend Distributable | 100,000 | ||
Paid-In Capital in Excess of Par Value | 200,000 | ||
March 14 | Common Stock Dividend Distributable | 100,000 | |
Common Stock, $5 par value | 100,000 | ||
March 25 | Memo â 2 for 1 stock split, Change the title | ||
Of the Common Stock account to reflect | |||
The new par value of $2.50 | |||
March 31 | Income Summary | 600,000 | |
Retained Earnings | 600,000 |
Using the schedule on the template, record the abovetransactions in the proper columns and calculate the endingbalances for each item.
Prepare a Stockholderâs Equity section of the Balance Sheet, ingood form, as of December 31 of the current year.
