| | | At December 31, Artists Unlimited Company had the following x \'/ 1 At Dec
ID: 2511202 • Letter: #
Question
| | | At December 31, Artists Unlimited Company had the following x '/ 1 At December 31, Artists Unlimited Company had the following 2 stockholder's equity components that would be part of the balance sheet 100% Stock Dividend $5,000 Cash Dividend for 1 Stock 5 Stockholders' Equity 6 Contributed Capital: 7 Number of common shares outstanding 8 Par value per common share 9 Common Stock, at par 10 Additional Paid in Capital 11 Total Contributed Capital 12 Retained Earnings 15 Total Stockholders' Equity At Dec 31 5,000 5,000 745,000 750,000 980,000 1,730,000 14 15 16 Required: 17 The company is considering 3 alternative distributions to stockholders. Consider each alternative independently of the others 18 Complete the table above and show the effect on stockholders' equity as a result of each of these distributions. 19 Use only cell references in formulas. Use cells C3, D3, and E3 as appropriate. Do not reference cells from one alternative in another alternative. 20 21 | 1) issue a 100% stock dividend.Explanation / Answer
Answer
100% Stock dividend
2 for 1 Stock Split
$5000 cash dividend
Stockholder's Equity
At Dec 31
Effect of transaction
Figures in Balance after taking effect
Effect of transaction
Figures in Balance after taking effect
Effect of transaction
Figures in Balance after taking effect
Contributed Capital:
Number of common shares outstanding
5000
5000
10000
10000
10000
0
5000
Par Value per common share
$1
$1
$1
$0.5
$0.5
$0
$1
Common Stock, at par
5000
5000
10000
5000
5000
0
5000
Additional paid in capital
745000
0
745000
0
745000
0
745000
Total Contributed Capital
750000
5000
755000
5000
750000
0
750000
Retained Earnings
980000
-5000
975000
0
980000
-5000
975000
Total Stockholder's Equity
$1730000
0
$1730000
$1730000
$1725000
100% Stock dividend
2 for 1 Stock Split
$5000 cash dividend
Stockholder's Equity
At Dec 31
Effect of transaction
Figures in Balance after taking effect
Effect of transaction
Figures in Balance after taking effect
Effect of transaction
Figures in Balance after taking effect
Contributed Capital:
Number of common shares outstanding
5000
5000
10000
10000
10000
0
5000
Par Value per common share
$1
$1
$1
$0.5
$0.5
$0
$1
Common Stock, at par
5000
5000
10000
5000
5000
0
5000
Additional paid in capital
745000
0
745000
0
745000
0
745000
Total Contributed Capital
750000
5000
755000
5000
750000
0
750000
Retained Earnings
980000
-5000
975000
0
980000
-5000
975000
Total Stockholder's Equity
$1730000
0
$1730000
$1730000
$1725000
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