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Andrew [12]
3 years ago
12

To reduce its stock price, Shriver Food Systems, Inc., declared and issued a 100 percent stock dividend. The company has 860,000

shares authorized and 260,000 shares outstanding. The par value of the stock is $1 per share and the market value is $100 per share. Prepare the journal entry to record this large stock dividend. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Business
1 answer:
harkovskaia [24]3 years ago
6 0

Answer:

Dr. Retained Earning                    $86,000,000

Cr. Common Stock                       $860,000

Cr. Paid-in-Capital excess of par $85,140,000

Explanation:

Stock dividend is the payment of dividend to stockholder in the form of stock/shares of the company. Stock are issued at the market price and the value of the dividend is transferred from the retained earning to the add-in-capital accounts.

Dividend Value = 860,000 x 100 = $86,000,000

Par Value of Stocks = $1 x 860,000 = $860,000

Add-in-capital excess of par common stock = ($100-$1) x 860,000 = $85,140,000

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On January 5, 2020, Sheffield Corporation received a charter granting the right to issue 5,100 shares of $100 par value, 7% cumu
andrew11 [14]

Answer:

 Sheffield Corporation

Journal Entries

Date             Description                              DR                           CR

Jan 11         Cash                                       292,500

                 Common stock                                                     195,000

                 Paid in Capital for common stock                         97,500

               

              <em>Being the amount received on issue of </em>

<em>              </em>

Feb 11     Equipment                                   53,300

              Factory Building                          152,000

              Land                                             295,000

             Prefereed stock                                                     410,000

             Paid -in -capital for Preferred stock                        90,300

July 29   Treasury stock                              25,600

              Cash                                                                            25,600

            Being the payment of own share purchased

Aug 10    Cash                                                   22,400

                Retained Earnings                               3,200

               Treasury stock                                                      25,600

 

Dec 31       Retained  earnings                              10,025

                 Dividend(0.35*19500)                                            6,825  

                 Treasury stock                                                         3,200  

Dec 31       Net Income ( Income Summary)      158,400

                  Retained Earnings                                               158,400

Balance sheet as at Dec 31

Equity

Common stock at $10 par value                                      $195,000

7% Preferred Stock                                                            410,000

Paid in capital for common stock                                        97,500

Paid in capital for Preferred stock                                        90,300

Retained Earnings ( 158,400-6825-3200)                         <u> 148,375</u>

                                                                                             <u>  941,175</u>

Explanation:

4 0
3 years ago
Samuel K. Jenkins is thirty-five years old and lives in New Mexico. He would like to run for President. What else do we need to
lyudmila [28]
Since he is 35 and lives in the United States we would need to know if he has been a resident within the United States for at least 14 years, and if he was a natural born citizen of the U.S.A.<span />
6 0
3 years ago
Read 2 more answers
Four years ago, a popular sandwich company used to sell 12-inch roast beef subs for only $5, but the same product now costs $7.6
Alex17521 [72]

Answer:

11.36%

Explanation:

Divide the new price of roast beef with the old one. 7.69 / 5

7.69 ÷ 5 = 1.538

Also divide 1 with the number of years inflation occur

1 ÷ 4 = 0.25

Next, is to raise the first answer gotten to the power of second.

1. 538 ^ 0.25 = 1.113625

Subtract from from 1

1 - 1.1136235 = -0.1136 = - 11.36%

8 0
3 years ago
In determining whether to issue a loan, banks are not allowed to ask about an applicant's
Firlakuza [10]

Answer:

country of origin.

Explanation:

Banks have a set of requirements that borrowers need to meet to qualify for a bank loan. The banks will ask questions to determine if the customer is eligible for a loan. Most of the questions pertain to the purpose of the loans and the customer's ability to repay.

The bank will ask about employment history, credit history, tax information, personal information, the purpose of the loan,  collateral, and other questions related to the ability to repay. A person's country of origin is unnecessary and may elicit elements of discrimination.

3 0
3 years ago
Read 2 more answers
Assume the demand curve is more elastic than the supply curve for the product: chewing tobacco. If the government wants to tax c
Over [174]

Answer:

The producers will bear more of the tax than the consumer because the supply curve is more inelastic than the demand curve.

Explanation:

The options to this question wasn't provided. Here are the options:

The consumers will bear more of the tax than the producer because the supply curve is more inelastic than the demand curve.

The producers will bear the entirety of the tax because the supply curve is more inelastic than the demand curve.

The producers will bear more of the tax than the consumer because the supply curve is more inelastic than the demand curve.

The consumers will bear the entirety of the tax because producers set the price.

The producers will bear the entirety of the tax because the government imposed the tax directly on them.

Demand is elastic if a small change in price has a greater effect on the quantity demanded.

Supply is elastic if a small change in price has a greater effect on the quantity supplied.

The more elastic demand or supply is the more sensitive quantity demanded or supplied to changes in price.

The burden of tax refers to who pays the tax.

If demand is more elastic that supply it means that demand is more price sensitive to changes in price that supply.

This means that if a tax is imposed which increases the price of the good, quantity demand would change more than quantity supplied.

Therefore, the burden of tax is borne by the party with the less elasticity.

I hope my answer helps you

4 0
3 years ago
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