Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Metlock Company provides you with the following condensed balance sheet information: Assets Current assets Equity investments $38,800 60,000 Equipment (net) Intangibles 263,100 54,800 Total

image text in transcribedimage text in transcribedimage text in transcribed

Metlock Company provides you with the following condensed balance sheet information: Assets Current assets Equity investments $38,800 60,000 Equipment (net) Intangibles 263,100 54,800 Total assets $416,700 Liabilities and Stockholders' Equity Current and long-term liabilities $98,100 Stockholders' equity Common stock ($5 par) $21.900 Paid-in capital in excess of par 107.700 Retained earnings 189.000 318,600 Total liabilities and stockholders' equity $416.700 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.) c. Metlock declares and issues a 20% stock dividend when the market price of the stock is $14 per share. (1) Total assets no effect (2) Common stock Increase (3) Paid-in capital in excess of par no effect (4) Retained earnings Increase (5) Total stockholders' equity no effect S EA 4380 0 7884 d. Metlock declares and distributes a property dividend. Metlock gives one share of its equity investment (ABC stock) for every two shares of Metlock Company stock held. Metlock owns 10,000 shares of ABC. ABC is selling for $11 per share on the date the property dividend is declared. (1) Total assets decrease v A (2) Common stock no effect $ (3) Paid-in capital in excess of par no effect v (4) Retained earnings decrease (5) Total stockholders' equity decrease v 59 S 14 24090 0 24090 24090 e. Metlock declares a 3-for-1 stock split and issues new shares. (1) Total assets no effect (2) Common stock decrease (3) Paid-in capital in excess of par no effect v (4) Retained earnings no effect (5) Total stockholders' equity no effect 67 69 69 69 69 13140 0 0 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Accounting

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

23rd Edition

978-0324662962

More Books

Students also viewed these Accounting questions