Prepare a tabular summary of the effects of the alternative

Assignment Help Accounting Basics
Reference no: EM131799962

On October 31, the stockholders' equity section of Pele Company's balance sheet consists of common stock $519,600 and retained earnings $430,000.

Pele is considering the following two courses of action:

(1)

 

Declaring a 7% stock dividend on the 86,600 $6 par value shares outstanding

(2)

 

Effecting a 2-for-1 stock split that will reduce par value to $3 per share.

The current market price is $15 per share.

Prepare a tabular summary of the effects of the alternative actions on the company's stockholders' equity and outstanding shares.

Pele Company's
Balance Sheet

 

Before Action

After Stock Dividend

After Stock Split

Stockholders' equity

     

   Paid-in capital

$

Entry field with correct answer

$

Entry field with correct answer

$

Entry field with correct answer

   Retained earnings

Entry field with correct answer

Entry field with correct answer

Entry field with correct answer

      Total stockholders' equity

$

Entry field with correct answer

$

Entry field with correct answer

$

Entry field with correct answer

Outstanding shares

Entry field with correct answer

Entry field with correct answer

Entry field with correct answer

Reference no: EM131799962

Questions Cloud

Define strategic management : Define strategic management? If you are a finance officer for a corporation or a marketing executive is strategy part of your role? explain
Assignment of new or additional responsibilities : Delegation is the assignment of new or additional responsibilities to a subordinate. When done correctly, the individuals involved
How many kanban card sets are needed : Approximately five vehicles are produced each hour, and management has decided that 40 percent of expected demand should be maintained as safety stock.
Demand for a popular athletic shoe : Demand for a popular athletic shoe is nearly constant at 800 pairs per week for a regional division of a national retailer.
Prepare a tabular summary of the effects of the alternative : Prepare a tabular summary of the effects of the alternative actions on the company's stockholders' equity and outstanding shares
Attitude about business management : Describe how your attitude about business management has been impacted by the information you gained in this course.
Determine the rms value of the current : Determine the rms value of the current in the circuit - What is the rms value of current in the circuit
Why does supervalu use fifo at all : Why does SUPERVALU use FIFO at all? What other method does SUPERVALU use? What caused LIFO Liquidation in 2014 and 2015?
Describe how geographic limitations can interfere : Describe how geographic limitations can interfere with foreign investment. Include in your discussion the issues of Brady v. Brown?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd