The annual report for Malibu Beachwear reported the following transactions affec

Question

The annual report for Malibu Beachwear reported the following transactions affecting shareholders' equity: reported the following transactions affectinghaelders equity a Repurchased and cancelled $4.0 million common shares a. Repurchased and cancelled $4.0 million common shares b. Declared and paid cash dividends in the amount of $265.0 milion. c. Issued 100 percent common stock dividend involving 234.0 millon additional shares with a total par value of $587.0 million. Required: 1. Indicate the effect (increase with'+, decrease with -, and increases and decrease within the accounting heads with +) of each of these transactions on total assets, liabilities, and shareholders equity ssets Liabilities Shareholders Transaction Equity a. b-1. Declaration b-2. Payment C.

Explanation / Answer

Jounal Entry:-

Debit Common Stock = 4

Credit Bank = 4

..

b)-1 :-

Debit Retained Earnings = 265

Credit Dividend Payable = 265

..

B)-2:-

Debit Dividend Payable = 265

Credit Bank = 265

..

c)Debit Retained Earnings = 587

Credit Common Stock = 587

Assets Liabilities Shareholders Equity a) -4million -4million b)-1 Declaration +265 million -265 million b)-2 Payment -265 million -265 million c) nil nil nil (+587 - 587)

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

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