Identifying and Analyzing Financial Statement Effects of Dividends The stockhold

Question

Identifying and Analyzing Financial Statement Effects of Dividends
The stockholders' equity of Kinney Company at December 31, 2013, is shown below.

The following transactions, among others, occurred during 2014:
Apr. 1 Declared and issued a 100% stock dividend on all outstanding shares of common stock. The market value of the stock was $11 per share.
Dec. 7 Declared and issued a 4% stock dividend on all outstanding shares of common stock. The market value of the stock was $14 per share.
Dec. 20 Declared and paid (1) the annual cash dividend on the preferred stock and (2) a cash dividend of 80 cents per common share.

(a) Use the financial statement effects template to indicate the effects of these separate transactions.

Balance Sheet

Income Statement

5% preferred stock, $100 par value, 10,000 shares authorized; 5,000 shares issued and outstanding $500,000 Common stock, $5 par value, 200,000 shares authorized; 60,000 shares issued and outstanding 300,000 Paid-in capital in excess of par value—preferred stock 40,000 Paid-in capital in excess of par value—common stock 300,000 Retained earnings 656,000 Total stockholders' equity $1,796,000

Explanation / Answer

Identifying and Analyzing Financial Statement Effects of Dividends The stockhold

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.