How would stock dividend be shown in the accounting equation

Assignment Help Financial Accounting

Reference no: EM13937603

Analyze and record stock dividend transactions.

At December 31, 2007, Robby 's Shoe Company had 200,000 shares of $5 par common stock issued and outstanding . The retained earnings balance was $165,000. On January 15, 2008, Robby's issued a 3% stock dividend to its common shareholders. At the time of the dividend, the market value of the stock was $20 per share.

Required

a. How would the stock dividend be shown in the accounting equation?

b. How many shares of stock are outstanding after the stock dividend?

c. If you owned 5% of the outstanding common stock of Robby's Shoe Company before the stock dividend, what is your percentage ownership after the stock dividend?

Reference no: EM13937603

Questions Cloud

Based on your analysis should the project be accepted : Find the net present value, internal rate of return, payback period, discounted payback period, and profitability index of the proposed project. Based on your analysis should the project be accepted?

Depreciation is straight-line to zero over life of project : We are evaluating a project that costs $1034668, has a seven-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 43281 units per year. What is the NPV of the proj..

Develop a c++ program to solve the problem : If an attempted debit transaction cannot be completed successfully (because there is not enough cash available), an error message should be displayed instead.

Review about teaching english language in libya : Write a literature review about teaching English language in Libya.

How would stock dividend be shown in the accounting equation : How would the stock dividend be shown in the accounting equation? How many shares of stock are outstanding after the stock dividend?

Nature of contemporary business : a) Demonstrate an understanding of the nature of contemporary business and business activities and operations

The annual effective interest rate : Cindy borrows 13,500 for 12 years at an annual effective interest rate of i. She accumulates the amount necessary to repay the loan by a sinking fund. Cindy makes 12 payments of P at the end of each year, which includes payment on the loan at an annu..

How can more innovation from suppliers be achieved : What are the four enablers of purchasing and supply chain excellence? Which is the most important according to you? Why? How can more innovation from suppliers be achieved

Set of non-negative integers : The draw for the next soccer season has just been released. There are 6 teams in the competition and in the first 3 rounds the following teams have been drawn to play each other.

User Account

All Pages