Top Posters
Since Sunday
a
5
k
5
c
5
B
5
l
5
C
4
s
4
a
4
t
4
i
4
r
4
r
4
Home Q & A Board Other Fields Homework Help Business Accounting
New Topic  
Tomm Tomm
wrote...
Go to Answer
Posts: 653
Rep: 0 0
6 years ago
Koffler Corp. reported the following shareholders' equity:
Share capital:

Preferred shares, 30,000 shares authorized,
7,500 shares issued, redemption value, $53.50   $ 393,750
Common shares, 200,000 shares authorized,
135,000 shares issued    607,500
Total share capital   $1,001,250
Retained earnings    218,500
Total shareholders' equity   $1,219,750

Required:
a.   The board of directors declared a 10% common stock dividend when the market price of the shares was $7 per share. Prepare the necessary journal entries to record the declaration and distribution of the common shares dividend.
b.   What effect did the distribution of the common shares dividend have on:
   1. total assets
   2. total liabilities
   3. total share capital
   4. total shareholders' equity
c.   Assuming all required preferred shares dividends have been paid, calculate the book value of a share of common shares before and after the common shares dividend. If Smith Jones owned 100 shares of Koffler's common shares before the stock dividend, what is the total book value of Smith's shares before and after the stock dividend?
Textbook 
Financial Accounting, Canadian Edition

Financial Accounting, Canadian Edition


Edition: 5th
Authors:
Read 102 times
1 Reply
ACC 925
Replies
Answer verified by a subject expert
msayed2004msayed2004
wrote...
#1
Posts: 353
Rep: 7 0
6 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
This verified answer contains over 140 words.
1

Related Topics

Tomm Author
wrote...

6 years ago
Thank you, thank you, thank you!
jayfo05
wrote...

Yesterday
I appreciate what you did here, answered it right Smiling Face with Open Mouth
smi3
wrote...

2 hours ago
You make an excellent tutor!
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1251 People Browsing
 128 Signed Up Today
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Related Images
  
 285
  
 4428
  
 424
Your Opinion
Which industry do you think artificial intelligence (AI) will impact the most?
Votes: 352
Previous poll results: Which is the best fuel for late night cramming?