Data Table Thestekhcldars\' aut, tar swar 1ats corporanan on J.re 12, 2017 tlanA
ID: 2595987 • Letter: D
Question
Data Table Thestekhcldars' aut, tar swar 1ats corporanan on J.re 12, 2017 tlanA :Cice the con to vica, tho dota.> On June 12. 2017, te marke, price cfSwee. Treats common stock was $16 ptr share. Assure Sweet Tre is declared ard distributed 6% stock cividend on this date. suhcrized, 600,000 shane iesued Paid-in capita in cxccs af par-comman 5 375,0010 07,267 111,000 Jun: equirerne t2. Precare he stoc ho ens equ ·set on o the taante s et aflu the lock dend ter the ytcourts n the poper o de fr thu lockholders equity section c thu bdance sheet Use parentheses stckholdars Equy: charcs Tootal stockhocers equity Requirentent 3.Why i^ total steekhldarsw-ity unchangad by tha stack didand? Requirement 4. Suppose ST hada tash udanse v3520,000 on June 13, 2017 Y-hat is te maimm mort h dividends ST can declare? Requrements ST: maximum coh dividends 1. JOLmalC the ceclarahon and dstributon cf tha stock drvoend 2. Prepare the stockholders ecuitr section of the balance heet ath stack cividend maximum moure of cash didends Sweet T.eacon declare? Chacse from any llst or entar an numbor in the inpurt ticlds and then contihus to the next question Save for LaterExplanation / Answer
Requirement 3:
The stock diividend did not change total stockholders' equity becasue the company merely distributed the retained earningsamong the shareholders.
Requirement 4:
ST's maximum cash dividends will be $1.00 per share.
Requirement 1: To record delcaration and distribution of 5% stock dividend Date Debit Credit Dec.31,Yr1 Retained earnings 400000 Common stock 18750 Additional paid in capital - coomon stock 381250 Shares outstanding 500000 Stock dividend @ 5% 25000 shares Market price per share $16.00 Value of stock dividend 400000Related Questions
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