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Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
Edition 4ISBN: 978-0078025372Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
Edition 4ISBN: 978-0078025372 Exercise 66
Analyzing Stock Dividends
On December 31, 2013, the stockholders' equity section of the balance sheet of R B Corporation reflected the following:
On February 1, 2014, the board of directors declared a 12 percent stock dividend to be issued April 30, 2014 The market value of the stock on February 1, 2014, was $18 per share.
Required:
1. For comparative purposes, prepare the stockholders' equity section of the balance sheet
( a ) immediately before the stock dividend and ( b ) immediately after the stock dividend.
TIP : Use two columns for the amounts in this requirement.
2. Explain the effects of this stock dividend on the assets, liabilities, and stockholders' equity.
3. How would your answers to requirements 1 and 2 change if the stock dividend were 100%
On December 31, 2013, the stockholders' equity section of the balance sheet of R B Corporation reflected the following:
On February 1, 2014, the board of directors declared a 12 percent stock dividend to be issued April 30, 2014 The market value of the stock on February 1, 2014, was $18 per share.
Required:
1. For comparative purposes, prepare the stockholders' equity section of the balance sheet
( a ) immediately before the stock dividend and ( b ) immediately after the stock dividend.
TIP : Use two columns for the amounts in this requirement.
2. Explain the effects of this stock dividend on the assets, liabilities, and stockholders' equity.
3. How would your answers to requirements 1 and 2 change if the stock dividend were 100%
Explanation
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Verified
(1)
(a)
The common stock of the company ...
Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
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