Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Just prior to the end of the fiscal year, Biofuel Corporation reported the following information: Common stock ( $ 0 . 5 0 par value

Just prior to the end of the fiscal year, Biofuel Corporation reported the following information:
Common stock ($0.50 par value) $ 80,000
Additional paid-in capital 2,100,000
Retained earnings 1,000,000
Treasury stock 0
Cash flows from financing activities 29,000
Required:
Complete the table below for each of the three following independent cases:
Note: Round "Par per share" answers to 2 decimal places.
Case 1: The board of directors declared a cash dividend of $0.02 per share.
Case 2: The board of directors declared and issued a 100 percent stock dividend when the stock was selling at $15 per share.
Case 3: The board of directors announced a 2-for-1 stock split. The market price prior to the split was $30 per share.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial accounting

Authors: Walter T. Harrison Jr., Charles T. Horngren, C. William Thom

9th edition

978-0132751216, 132751127, 132751216, 978-0132751124

Students also viewed these Accounting questions