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Mekhanik [1.2K]
1 year ago
11

similar to a stock split, a stock also distributes additional shares of stock to existing stockholders on a pro rata basis at no

cost to the stockholders. (enter one word per blank.)
Business
1 answer:
Afina-wow [57]1 year ago
6 0

Similar to a stock split, a stock <u>dividend</u> also distributes additional shares of stock to existing stockholders on a pro rata basis at no cost to the stockholders.

A stock split is a decision made by the board of directors of a firm to issue more shares to present owners in order to increase the number of shares outstanding.

A stock split is a division of issued shares in a ratio determined by the company, whereas a stock dividend is a dividend paid in the form of extra shares. While in a stock split, already issued shares are divided in accordance with a predetermined ratio, a stock dividend gives stockholders extra shares.

To know more about Stock Split here

brainly.com/question/24080551

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The shareholders’ equity section of the balance sheet of TNL Systems Inc. included the following accounts at December 31, 2015:
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1.

                     TNL System Journal entries

Date                 Description                                 DR                 CR

                                                                         $'million           $'million

a. Feb 5               Treasury Stock                           66

                             Cash                                                                   55

                   <em>Being the purchase of own shares</em>

b.   July 9             Cash                                             26

                              Treasurt Stock                                                  22

                              Paid -in- Capital -share repurchase                 4

                     <em> </em><em>Being the resale of treasury stock</em>

<em>c. </em> Nov 4             Cash                                                  16

                         Paid - in-capital- share repurchase    5

                         Retained earnings                                1                  

                          Treasury stock                                                       22

                  <em>Being the resale of treasury stock  below the cost</em>

2.                Balance Sheet as at December 31, 2018

                                                                                               $'million

                Equity

           Common stock, 230 ,illion shares at $1                             230

             Paid-in-excess capital of par                                           1,830

             Retained Earnings ( 1,400 - 1 -1,399)                             <u>        -</u>

                                                                                                        2,060

           Treasury Stock                                                                <u>         (22)</u>

             Total Equity                                                                     <u>     2,038</u>

Explanation:

3 0
3 years ago
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