A5 LO 8-7Brief Exercise 8-7 Effect of stock dividends on financial statementsHernandez Corporation issued an 8 percent stock dividend on 40,000 shares of its $5 par common stock. At the time of the dividend,the market value of the stock was $10 per share.RequiredShow the effects of the stock dividend on the financial statements using a horizontal statements model. In the Statement of Cash Flowscolumn, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). An example of ahorizontal statements model is shown below:EventBalance SheetStk EquityCash = Com. Stk. + PIC Excess CS + Ret. Earn. Rev. - Exp. = Net Inc.Assets ==+Income Statement=Statement ofCash Flows

A stock dividend is a corporate action taken by the company to issue shares without consideration.…

Answered: LO 8-7 Brief Exercise 8-7 Effect of…

Financial Accounting Intro Concepts Meth/Uses

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Chapter16: Statement Of Cash Flows: Another Look

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Problem #1 Effects of Transactions Indicate the effects of each of the following transactions on Assets, Liabilities, Share Capital and Retained Earnings. Use + for increase, - for decrease, and 0 for no effect. Share Retained Assets Liabilities Сapital Earnings 1. Declaration of cash dividends 2. Payment of cash dividends 3. Declaration of share dividends 4. Issuance of share dividends 5. A share split 6. Cash purchase of treasury stock 7. Sale of tre stock below cost Problem #2 Effect of Cash Dividend Indicate whether the following actions would (+) increase, (-) decrease, or (0) not affect Bernal Inc.'s total assets, liabilities and shareholders' equity: Shareholders' Assets Liabilities Equity 1. Declaring a cash dividend Paying the cash dividend declared in no. 1 2. 3. Declaring a share dividend 4, Issuing share certificates for the share dividend declared in no. 3 5. Authorizing and issuing share certificates in a share split
K Exercise 11-15A (Algo) Accounting for stock dividends LO 11-7 Beacon Corporation issued a 4 percent stock dividend on 26,500 shares of its $8 par common stock. At the time of the dividend, the market value of the stock was $24 per share. Required: 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. Complete this question by entering your answers in the tabs below. Required A Required B Compute the amount of the stock dividend. Stock dividend 1111 < Prev 9 of 12 ⠀⠀⠀ Next
Beacon Corporation issueda 4 percent stock dividend on 37,000 shares of its $8 par common stock. At the time of the dividend, the market value of the stock was S28 per share. Required 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, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). If an element was not affected by the event, leave the cell blank. Complete this question by entering your answers in the tabs below. Required A Required B Compute the amount of the stock dividend. Stock dividend Required B > Prev 18 of 20 Next >
Journal entry worksheet く 1 2 3 4 5 6 7 8 Record the declaration of a cash dividend of $2 per share. Note: Enter debits before credits. Date January 05 Supplies General Journal Debit Credit Common dividend payable 13
Common stock transactions on the statement of cash flows Jones Industries received 800,000 from issuing shares of its common stock and 700,000 from issuing bonds. During the year, Jones Industries also paid dividends of 90,000. How are the effects of these transactions reported on the statement of cash flows?
Common stock transactions on the statement of cash flows Jones Industries received 600,000 from issuing shares of its common stock and 400,000 from issuing bonds. During the year, Jones Industries also paid dividends of 60,000. How are the effects of these transactions reported on the statement of cash flows?
Problem 10-86A Stock Dividends and Stock Splits Lance Products balance sheet includes total assets of $587,000 and the following equity account balances at December 31, 2019: Lances common stock is selling for $12 per share on December 31, 2019. Required: How much would Lance Products have reported for total assets and retained earnings on December 31, 2019, if the firm had declared and paid a $15,000 cash dividend on December 31, 2019? Prepare the journal entry for this cash dividend. How much would Lance have reported for total assets and retained earnings on December 31, 2019, if the firm had issued a 15% stock dividend on December 31, 2019? Prepare the journal entry for this stock dividend. CONCEPTUAL CONNECTION How much would Lance have reported for total assets and retained earnings on December 31, 2019, if the firm had effected a 2-for-l stock split on December 31, 2019? Is a journal entry needed to record the stock split? Why or why not?

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