E11-15 on october 31 the stockholders equity section of

Reference no: EM13609681

E11-15 On October 31, the stockholders' equity section of Omar Company consists of common stock $600,000 and retained earnings $900,000. Omar is considering the following two courses of action: (1) declaring a 5% stock dividend on the 60,000, $10 par value shares outstanding, or (2) effecting a 2-for-1 stock split that will reduce par value to $5 per share. The current market price is $14 per share.

Instructions
Prepare a tabular summary of the effects of the alternative actions on the components of stockholders' equity and outstanding shares.
Answer: Before After Stock After Stock
Action Dividend Split
Stockholders Equity:
Paid in Capital
Common stock amount Amount Amount
In excess of par value amount Amount Amount
Total Paid In Capital Amount Amount Amount
Retained Earnings amount Amount Amount
Total Stockholders Equity Amount Amount Amount

Outstanding Shares Amount Amount Amount

Reference no: EM13609681

Questions Cloud

Jarvene corporation uses the fifo method in its process : jarvene corporation uses the fifo method in its process costing system. the following data are for the most recent

What is the change in electrical potential energy during : a a balloon of radius 30.5 cm is sprayed with a metallic coating so that the surface is conducting. a charge of

If the rods are 15 inches in diameter and the allowable : an elevated open stairway is designed to be supported by four steel rods connecting the stairway to the ceiling. the

For each of the following situations identify the correct : for each of the following situations identify the correct factor to use from table 1 or table 2 in the appendix on

E11-15 on october 31 the stockholders equity section of : e11-15 on october 31 the stockholders equity section of omar company consists of common stock 600000 and retained

Determine the time constant of this thermocouple if the gas : a chromel-alumel thermocouple junction which can be approximated with a sphere has an effective diameter of 1 mm. it is

Dixon sales has five sales employees which receive weekly : dixon sales has five sales employees which receive weekly paychecks. each earns 10.25 per hour and each has worked 40

A copy machine acquired on march 1 2011 with a cost of 705 : a copy machine acquired on march 1 2011 with a cost of 705 has an estimated useful life of 4 years. assuming that it

Does anyone have the answersolution to the comprehensive : does anyone have the answersolution to the comprehensive problem chapter 3 to 7 for accounting principles by jerry j

User Account

All Pages