Acct241

The company is considering the following altemative tems: 1. An 8% stock dividend on the common slock when it is selling for $30 per share. 2. A 30% stock dividend on the common stock when it is soling for $32 per share. 3. A special stock dividend to common shareholders consisting of 1 share of preferred stock for every 100 shares of common stock. The preterred stock and common stock are selling for $123 and $31 per share, respectively. 4. A 2-for-1 stock split on the common stock, foducing the par value to $5 per share (assume the same date for declaration and issuance). The market price is $30 per share on the common stock. 5. A property dividend to common shareholders consisting of 100 bonds issued by West Company. These bonds are carried on the Alert Company books as an available-for-sale investment at a tai value of $48,000 (which is also its cost); 4 has a current value of $54,000. 6. A cash dividend, consisting of a normal dividend and a liquidating dividend, on both the preferred and the cornmon stock. The 10\% preferred dividend includes a 2% liquidating dividend, and the $2.30 per share commen dividend includes a 50.30 per share liquidating dividend (separate liquidating dividend contra accounts should be used). Required: For each of the precoding altemstive items: 1. Record (a) the journal entry at the date of declaration and (b) the journal entry at the date of issuance. 2. Compute the balances in the shareholders' equity accounts immediately after the issuance (any gains or losses are to be reflected in the retained earnings balance; ignore income taxes). 1. For each of the preceding alfernative ilems: Record (a) the journal entry at the date of declaration on October 1 and (b) the joumal entry at the date of issuance on October 15 1. Assume an 8% sfock dividend on the common stock when it is selling for $30 por share. General Joumal instructions How does grading work? 2. Compute the balances in the shareholdors' equity accounts immediately afler the issuance (any gains or losses are to be reflocted in the retained earnings balance; igncre income taxes) Batance Sheot instruction Question not attempted. 2. Assume a 30% stock dividend on the common stock when it is selling for $32 per share. General Joumal Instructions How does grading work? 6. Assume a cash dividend, consisting of a nomal dividend and a liquidating dividend, on both the proferred and the common stock The 10% proforred dividend includes a 25 ilouidating dividend, and the $2.30 per share common dividend includes a 5030 per share liquidating dividend (separate liquidating dividend contra accounts should be iseod). General Joumal instructions Question not attempted. 3. Assume a special stock dividend to common shareholders consisting of 1 share of preferred stock for every 100 shares of common stock. The protemed stock and common slock are selling for \$123 and \$31 per share. respectively General Journal histructions All transoctions on this page must be entered (except for post ref(s)) before you will receive Check My Work feedback. Assume a 2-for-1 stock split on the common stock, reducing the par value to $5 per shave (assume the same dato for declaration and issuance), The market price is $50 per share on he common stock. What disclosure is required? Check all that apply. Mernorandum entry: Common stock split two for one, par value teduced from $10 to $5 Alert Company's shareholders' equity prior to any of the following events is as follows: The company is considering the following alternative items: 1. An 8% stock dividend on the common stock when it is selling for $30 per share. 2. A 30% stock dividend on the common stock when it is selling for $32 per share. 3. A special stock dividend to common shareholders consisting of 1 share of preferred stock for every 100 shares of common stock. The preferred stock and common stock are selling for $123 and $31 per share, respectively. 4. A 2-for-1 stock split on the common stock, reducing the par value to $5 per share (assume the same date for declaration and issuance). The market price is $30 per share on the common stock. 5. Assume a property dividend to common shareholders consisting of 100 bonds issued by West Company. These bonds are camed on the Alert Company bookis as an avalable-for-sale investment af a fair value of $43,000 (which is also its cost: a has a current value of $4,000 General Journal instructions Question not attempted