Question
Myers Company provides you with the following condensed balance sheet information. Assets Current assets $42,800 Equity investments (ABC stock; 10,110 shares at cost) 50,550 Equipment
Myers Company provides you with the following condensed balance sheet information.
Assets | ||
Current assets | $42,800 | |
Equity investments (ABC stock; 10,110 shares at cost) | 50,550 | |
Equipment (net) | 251,500 | |
Intangibles | 60,780 | |
Total assets | $405,630 | |
Liabilities and Stockholders Equity | ||
Current and long-term liabilities | $107,300 | |
Stockholders equity | ||
Common stock ($5 par) | $28,800 | |
Paid-in capital in excess of par | 119,200 | |
Retained earnings | 150,330 | 298,330 |
Total liabilities and stockholders equity | $405,630 |
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 $0.57per share cash dividend.
(1) | Total assets | decreaseincreaseno effect | $ |
(2) | Common stock | decreaseincreaseno effect | $ |
(3) | Paid-in capital in excess of par | decreaseincreaseno effect | $ |
(4) | Retained earnings | decreaseincreaseno effect | $ |
(5) | Total stockholders equity | decreaseincreaseno effect | $ |
(b)Myers declares and issues a10% stock dividend when the market price of the stock is $14per share.
(1) | Total assets | decreaseincreaseno effect | $ |
(2) | Common stock | decreaseincreaseno effect | $ |
(3) | Paid-in capital in excess of par | decreaseincreaseno effect | $ |
(4) | Retained earnings | decreaseincreaseno effect | $ |
(5) | Total stockholders equity | decreaseincreaseno effect | $ |
(c)Myers declares and issues a40% stock dividend when the market price of the stock is $15per share.
(1) | Total assets | decreaseincreaseno effect | $ |
(2) | Common stock | decreaseincreaseno effect | $ |
(3) | Paid-in capital in excess of par | decreaseincreaseno effect | $ |
(4) | Retained earnings | decreaseincreaseno effect | $ |
(5) | Total stockholders equity | decreaseincreaseno effect | $ |
(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 $12per share on the date the property dividend is declared.
(1) | Total assets | decreaseincreaseno effect | $ |
(2) | Common stock | decreaseincreaseno effect | $ |
(3) | Paid-in capital in excess of par | decreaseincreaseno effect | $ |
(4) | Retained earnings | decreaseincreaseno effect | $ |
(5) | Total stockholders equity | decreaseincreaseno effect | $ |
(e)Myers declares a2-for-1 stock split and issues new shares.
(1) | Total assets | decreaseincreaseno effect | $ |
(2) | Common stock | decreaseincreaseno effect | $ |
(3) | Paid-in capital in excess of par | decreaseincreaseno effect | $ |
(4) | Retained earnings | decreaseincreaseno effect | $ |
(5) | Total stockholders equity | decreaseincreaseno effect | $ |
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