Use the following information to answer the next 10questions:
A company with 100,000 authorized shares of $4 par common stockissued 50,000 shares at $9 per share. Subsequently, the companydeclared and issued a 10% stock dividend. The market price of theshares is $20 per share.
49. What is the effect of thedividend on Reatined Earnings?
a. Retained earnings decreased
b. Retained earnings increased
c. Retained earnings remained the same
d. None of the above
50. Refer to the previous. By what amount did Retained Earningchange, if at all? (If the account balance or amount did notchange, state your answer as "$0")
51. What is the effect of the dividend on Common Stock?
a. Common Stock decreased
b. Common Stock increased
c. Common Stock remained the same
d. None of the above
52. Refer to the previous question. By what amount did CommonStock change, if at all? ( If the account balance or amount did notchange, state your answer as "$0")
53. What is the effect of the dividend on Paid in Capital?
a. Paid-in Capital decreased
b. Paid-in Capital increased
c. Paid-in Capital remained the same
d. None of the above
54. Refer to the previous question.By what amount did Paid in Capital change, if at all? ( If theaccount balance or amount did not change, state your answer as"$0")
55. What is the effect of thedividend on the number of shares outstanding?
a. The number decreased
b. The number increased
c. The number remained the same
d. None of the above
56. Refer to the previous question.By what amount did the number of shares change, if at all? (If theaccount or amount did not change, state your answer as "$0")
57. What is the effect of the dividend on total equity and totalassets?
a. Total equity decreased, and total assets decreased
b. Total equity decreased, and total assets increased
c. Total equity increased, and total assets decreased
d. Total equity increased, and total assets increased
e. None of the above
58. Refer to the previous question.By what amount did total equity change if at all? ( If the accountbalance or amount did not change, state your answer as "0")
Use the following information to answer the next 10questions:
A company with 100,000 authorized shares of $4 par common stockissued 50,000 shares at $9 per share. Subsequently, the companydeclared and issued a 10% stock dividend. The market price of theshares is $20 per share.
49. What is the effect of thedividend on Reatined Earnings?
a. Retained earnings decreased
b. Retained earnings increased
c. Retained earnings remained the same
d. None of the above
50. Refer to the previous. By what amount did Retained Earningchange, if at all? (If the account balance or amount did notchange, state your answer as "$0")
51. What is the effect of the dividend on Common Stock?
a. Common Stock decreased
b. Common Stock increased
c. Common Stock remained the same
d. None of the above
52. Refer to the previous question. By what amount did CommonStock change, if at all? ( If the account balance or amount did notchange, state your answer as "$0")
53. What is the effect of the dividend on Paid in Capital?
a. Paid-in Capital decreased
b. Paid-in Capital increased
c. Paid-in Capital remained the same
d. None of the above
54. Refer to the previous question.By what amount did Paid in Capital change, if at all? ( If theaccount balance or amount did not change, state your answer as"$0")
55. What is the effect of thedividend on the number of shares outstanding?
a. The number decreased
b. The number increased
c. The number remained the same
d. None of the above
56. Refer to the previous question.By what amount did the number of shares change, if at all? (If theaccount or amount did not change, state your answer as "$0")
57. What is the effect of the dividend on total equity and totalassets?
a. Total equity decreased, and total assets decreased
b. Total equity decreased, and total assets increased
c. Total equity increased, and total assets decreased
d. Total equity increased, and total assets increased
e. None of the above
58. Refer to the previous question.By what amount did total equity change if at all? ( If the accountbalance or amount did not change, state your answer as "0")
