Question
Myers Company provides you with the following condensed balance sheet information. Assets Current assets $ 44,100 Equity investments (ABC stock; 11,410 shares at cost) 68,460
Myers Company provides you with the following condensed balance sheet information.
Assets | ||||
Current assets | $ 44,100 | |||
Equity investments (ABC stock; 11,410 shares at cost) | 68,460 | |||
Equipment (net) | 251,400 | |||
Intangibles | 60,320 | |||
Total assets | $424,280 | |||
Liabilities and Stockholders Equity | ||||
Current and long-term liabilities | $108,500 | |||
Stockholders equity | ||||
Common stock ($5 par) | $ 23,400 | |||
Paid-in capital in excess of par | 119,900 | |||
Retained earnings | 172,480 | 315,780 | ||
Total liabilities and stockholders equity | $424,280 |
For each transaction below, 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) Myers declares and pays a $0.50 per share cash dividend.
(b) Myers declares and issues a 10% stock dividend when the market price of the stock is $14 per share.
(c) Myers declares and issues a 30% stock dividend when the market price of the stock is $15 per share.
(d) Myers declares and distributes a property dividend. Myers gives one share of its equity investment (ABC stock) for every two shares of Myers Company stock held. ABC is selling for $12 per share on the date the property dividend is declared.
(e) Myers declares a 3-for-1 stock split and issues new shares.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started