Need part B completed (Common Stock & Paid-in Excess) Tidwell Corporation issued

Question

Need part B completed (Common Stock & Paid-in Excess)

Tidwell Corporation issued a 4 percent stock dividend on 25,000 shares of its $8 par common stock. At the time of the dividend, the market value of the stock was $23 per share.

a. Compute the amount of the stock dividend.

b.

Show the effects of the stock dividend on the financial statements using a horizontal statements model. In the Cash Flow column, use OA to designate an operating activity, IA for an investment activity, FA for a financing activity and NA to indicate the element is not affected by the event. (Enter any decreases to account balances and cash outflows with a minus sign.)

Tidwell Corporation issued a 4 percent stock dividend on 25,000 shares of its $8 par common stock. At the time of the dividend, the market value of the stock was $23 per share.

Explanation / Answer

TIDWELL CORPORATION Horizontal Statements Model Balance Sheet Income Statement Statement of Cash Flows Assets = Liabilities + Stockholders’ Equity Revenue – Expenses = Net Income Common Stock + Paid-in Excess + Retained Earnings 0 = 0 + 8000 + 17000 + -23,000 0 – 0 = 0 0 NA

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