Lance Products' balance sheet includes total assets of $587,000 and the following equity account balances at December
Question:
Common stock, $2 par, 80,000 shares issued and outstanding ........................ $160,000
Additional paid-in capital-common stock .................................................. 24,000
Total capital stock ............................................................................ $184,000
Retained earnings .............................................................................. 217,000
Total stockholders' equity ................................................................... $401,000
Lance's common stock is selling for $12 per share on December 31, 2019.
Required:
1. How much would Lance Products have reported for total assets and retained earnings on December 31, 2019, if the firm had declared and paid a $15,000 cash dividend on December 31, 2019? Prepare the journal entry for this cash dividend.
2. How much would Lance have reported for total assets and retained earnings on December 31, 2019, if the firm had issued a 15% stock dividend on December 31, 2019? Prepare the journal entry for this stock dividend.
3. How much would Lance have reported for total assets and retained earnings on December 31, 2019, if the firm had effected a 2-for-1 stock split on December 31, 2019? Is a journal entry needed to record the stock split? Why or why not?
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1 Total assets wouldhave been 572000 587000 15000 and retained earnings would have been202...View the full answer
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Kiran Ghuge
Hii, i am Kiran vijay ghuge , i belong to Nashik distric in maharashtra. I have done my BE in mechanical engineering of snjb college of engineering Chandwad.
I have tutored primary and high school students one-on-one in Mathematics. Also, I often helped my friends study for exams by going over content with them and making up fake questions. I was a peer tutor at my high school, which involved running homework club and aiding teachers during my study period. I was a prefect and ran my own committee, as well as coaching and refereeing junior volleyball teams. I think that everybody learns differently and at different rates, so the group-learning environment at school causes students to struggle and disengage from what they are learning. Also, students learn to tests or exams because teenagers will often look for an easy way to do something so they practice how to answer questions rather than understanding the actual content, so when they are given a new question they can struggle to answer it. Teenagers have short attention spans. Thus, sitting in a class for an hour (or 100 mins at my school) doing the same thing means that eventually the students will become distracted and go on their phones, talking to friends etc.
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