Eddie Baker Corporation provides you with the following condensed balance sheet information:

ASSETS

Current assets $ 40,000

Equity investments 60,000

Equipment (net) 250,000

Intangible assets 60,000

Total Assets $ 410,000

LIABILITIES & STOCKHOLDERS EQUITY

Current & long-term liabilities $ 100,000

Common stock ($5 par) $ 20,000

APIC C/S 110,000

Retained earnings 180,000 310,000

Total liabilities & SE $ 410,000

Instructions:

For each of the following transactions, indicate the dollar impact (if any) on the following five items: (1) total assets; (2) common stock; (3) paid-in capital in excess of par; (4) retained earnings, and (5) stockholders equity. Each situation is independent.

a. Baker declares and pays a $0.50 per share cash dividend

b. Baker declares and issues a 10% stock dividend when the market price of the stock is $14 per

share

c. Baker declares and issues a 30% stock dividend when the market price of the stock is $15 per

share

d. Baker declares a 2-for-1 stock split and issues new shares

e. Baker declares and distributes a property dividend. Baker gives one share of its equity

investment (ABC stock) for every two shares of Baker Corporation stock held. Baker owns

10,000 shares of ABC. ABC is selling for $10 per share on the date the property dividend is

declared.

	Total Assets	Common Stock	APIC C/S	Retained Earnings	Stockholders Equity
b.
c.
d.
e.