Compute the amount of the stock dividend

Assignment Help Financial Accounting

Reference no: EM131262281

Idwell Corporation issued a 8 percent stock dividend on 25,500 shares of its $12 par common stock. At the time of the dividend, the market value of the stock was $26 per share.

Required

a. Compute the amount of the stock dividend.

Stock Dividend:

b. Show the effects of the stock dividend on the financial statements using a horizontal statements model. In the Cash Flow column, use OA to designate an operating activity, IA for an investment activity, FA for a financing activity and NA to indicate the element is not affected by the event. (Enter any decreases to account balances and cash outflows with a minus sign.)

Balance Sheet Income Statement Statement of Cash Flows

Asset =Liabilities+Common Stock+Retained Earning Revenue-Expenses=Net Income FA/IA/OA/NA.

Reference no: EM131262281

Questions Cloud

The total amount of stockholders equity is : At the end of the accounting period, Harris Company had a balance of $5,200 in its common stock account, additional paid in capital of $6,100, retained earnings of $6,000, and $2,500 of treasury stock. The total amount of stockholders' equity is:

Remaining income being distributed equally in two partners : Laverne and Shirley started a partnership. Laverne invested $11,000 in the business and Shirley invested $19,500. The partnership agreement stipulated that profits would be divided as follows. Each partner would receive a 12% return on their invested..

How many units does samantha need to sell to breakeven : The Claire Corporation sells only one product. The following is budgeted information for that product: How many units does Samantha need to sell to breakeven? How much revenue does Samantha need to generate to breakeven? Assume Samantha is currently ..

The lowering of barriers to international trade help firms : Propagated in the 16th centuries _______advocated that countries should simultaneously encourage exports and discourage imports. How does the lowering of barriers to international trade help firms. What is the purpose of the IMF?

Compute the amount of the stock dividend : Idwell Corporation issued a 8 percent stock dividend on 25,500 shares of its $12 par common stock. At the time of the dividend, the market value of the stock was $26 per share. Compute the amount of the stock dividend. Show the effects of the stock d..

Cause the auditor to not use attribute sampling : In what kind of economy is production determined by the interaction of supply and demand and signaled to producers through the price system? Which of the following would cause the auditor to not use attribute sampling?

The straw men approach to business ethics : Which of the following is not the straw men approach to business ethics. Which business straw men approach to business ethics is best summarized by the maxim when in Rome do as the Roman's do. Islamic countries are likely to be receptive to internati..

Compute the depreciation for each of the three years : Renner Corporation purchased a delivery van for $26,300 in 2014. The van was expected to have a useful life of 160,000 miles and a salvage value of $2,300. Actual mileage was as follows: 2014 50,000 2015 45,000 2016 47,000 Required. Compute the depre..

Calculate amount of under-over-absorbed overhead for year : Carmen has a bakery that specializes in dog foos in a variety of sizes and flavors. Carmen uses a flexible budget to forecast manufacturing overhead, which is then allocated to products based on over hours. Calculate the overhead application rate at ..

User Account

All Pages