A company with 50,000 authorized shares of $1 par common stockissued 10,000 shares at $10 per share, Subsequently, the companydeclared and paid a $3 cash dividend per share. On the date thecompany declared the dividend, the market price of the shares was$30 per share.
What is the effect of the dividend on Retained Earnings?
Retained earnings decreased
Retained earnings increased
Retained earnings remained the same
None of the above.
Refer to the previous question. By what amount did RetainedEarnings change, of at all? ( If the account balance or amount didnot change, state your answer as â$0â)
What is the effect of the dividend on Common Stock?
Common stock decreased
Common stock increased
Common stock remained the same
None of the above
Refer to the previous question. By what amount did Common Stockchange, of at all? (If the account balance or amount did notchange, state your answer as â$0â)
What is the effect of the dividend on Paid-in- Capital?
Paid-in Capital decreased
Paid-in Capital increased
Paid-in Capital remained the same
None of the above
Refer to the previous question. By what amount did Paid-inCapital change, of at all? (If the account balance or amount didnot change, state your answer as â$0â)
What is the effect of the dividend on the number of sharesoutstanding?
The number decreased
The number increased
The number remained the same
None of the above
Refer to the previous question. By what amount did the number ofshares outstanding change, if at all? (If the account balance oramount did not change, state your answer as â$0â)
What is the effect of the dividend on total equity and totalassets?
Total equity decreased, and total assets decreased
Total equity decreased, and total assets increased
Total equity increased, and total assets decreased
Total equity increased, and total assets increased
None of the above
Refer to the previous question. By what amount did total equityand total assets change if at all? (If the account balance oramount did not change, state your answer as â$0â)
A company with 50,000 authorized shares of $1 par common stockissued 10,000 shares at $10 per share, Subsequently, the companydeclared and paid a $3 cash dividend per share. On the date thecompany declared the dividend, the market price of the shares was$30 per share.
What is the effect of the dividend on Retained Earnings?
Retained earnings decreased
Retained earnings increased
Retained earnings remained the same
None of the above.
Refer to the previous question. By what amount did RetainedEarnings change, of at all? ( If the account balance or amount didnot change, state your answer as â$0â)
What is the effect of the dividend on Common Stock?
Common stock decreased
Common stock increased
Common stock remained the same
None of the above
Refer to the previous question. By what amount did Common Stockchange, of at all? (If the account balance or amount did notchange, state your answer as â$0â)
What is the effect of the dividend on Paid-in- Capital?
Paid-in Capital decreased
Paid-in Capital increased
Paid-in Capital remained the same
None of the above
Refer to the previous question. By what amount did Paid-inCapital change, of at all? (If the account balance or amount didnot change, state your answer as â$0â)
What is the effect of the dividend on the number of sharesoutstanding?
The number decreased
The number increased
The number remained the same
None of the above
Refer to the previous question. By what amount did the number ofshares outstanding change, if at all? (If the account balance oramount did not change, state your answer as â$0â)
What is the effect of the dividend on total equity and totalassets?
Total equity decreased, and total assets decreased
Total equity decreased, and total assets increased
Total equity increased, and total assets decreased
Total equity increased, and total assets increased
None of the above
Refer to the previous question. By what amount did total equityand total assets change if at all? (If the account balance oramount did not change, state your answer as â$0â)
