Scott Ward Wk 2 - Current balance of retained earnings...

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EXERCISE 15-13 (10-15 minutes) (a) (b) Reatained Earnings $90,000,000 Common Stock dividend Dist. $90,000,000 Common Stock dividend Dist. $90,000,000 Common Stock $90,000,000 (c) There is no entry needed, just a note that the stock has increased to 18 million and that the par value will go from $10 per share to $5 due to the split. With stock dividends and stock splits, the board of directors are trying to increase the quantity of shares by taking the price down to a range that is reasonable to still bring in more investors, but not hurt the company financially.
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EXERCISE 15-16 (5-10 minutes) Total income since incorporation $317,000 Less: Total cash dividends paid $60,000 Less: Total value of stock dividends $30,000 $90,000
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Unformatted text preview: Current balance of retained earnings $227,000 Enter text here EXERCISE 16-16 (10-15 minutes) Dates Shares Fraction Weighted Event Outstanding Outstanding Restatement of Year Shares Beginning balance Jan. 1-May 1 750,000 2 0.333 500,000 Issued shares May 1-Aug. 1 1,050,000 2 0.250 525,000 Reacquired shares Aug. 1-Dec. 31 900,000 2 0.417 750,000 Weighted average number of shares outstanding 1,775,000 Net income $2,500,000 Preferred dividend ($400,000) Net income applicable to common stock $2,100,000 Net income applicable to common stock $2,100,000 Weighted average number of shares outstanding 1,775,000 EPS $1.18 Note: Fraction of a year can be shown as either a Fraction or Number: e.g. 4/12 or .333...
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This note was uploaded on 03/01/2012 for the course ACC all taught by Professor All during the Spring '12 term at University of Phoenix.

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Scott Ward Wk 2 - Current balance of retained earnings...

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