Squash Delight Inc. has the following balance sheet: Assets Cash $ 30,000 Accoun
ID: 2620734 • Letter: S
Question
Squash Delight Inc. has the following balance sheet:
Assets Cash $ 30,000
Accounts receivable 317,000
Fixed assets 862,000
Total assets $ 1,209,000
Liabilities Accounts payable $ 262,000
Notes payable 56,000
Common stock (130,000 shares @ $2 par) 260,000
Capital in excess of par 100,000
Retained earnings 531,000
Total liabilities & owners' equity $ 1,209,000
The firm’s stock sells for $12 a share.
b. Show the effect on the capital accounts of a 10 percent stock dividend. Part b is separate from part a. In part b do not assume the stock split has taken place. (Do not round intermediate calculations and round your answers to the nearest whole dollar.)
Effect of stock dividend Common stock $286,000 Capital Excess of Par ? Retained earnings ? Total Equity ?Explanation / Answer
$ 891,000
Effect of stock dividend Common stock $286,000 Capital Excess of Par $ 100,000 Retained earnings $ 505,000 Total Equity$ 891,000
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.