Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On December 15, 2021, Tripod Inc.s stock was trading at $3 per share and had the following balances in their equity accounts: Common Stock ($0.10

On December 15, 2021, Tripod Inc.s stock was trading at $3 per share and had the following balances in their equity accounts: Common Stock ($0.10 Par) 1,000,000 Paid-in-Capitalexcess of par, common 6,780,000

Retained Earnings 4,672,000 a. (4%) If Tripod declared and paid a 30% stock dividend, what is the impact of the dividend on Retained Earnings and Paid-in-Capital? b. (4%) If Tripod declared and paid a 20% stock dividend, what is the impact of the dividend on Retained Earnings and Paid-in-Capital? c. (6%) Instead of declaring a stock dividend, Tripod Inc. declared a property dividend of the companys investment in Bad Investments on December 15, 2021. The carrying value of the Bad Investments stock is $6,000,000 and the fair market value is $5,000,000. Prepare the journal entries related to the property dividend declaration. d. (2%) Prepare the journal entry to record the property dividend payment.

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 Texts And Cases

Authors: Robert Anthony, David Hawkins, Kenneth A. Merchant

12th Edition

0073100919, 978-0073100913

More Books

Students also viewed these Accounting questions

Question

Describe effectiveness of reading at night?

Answered: 1 week ago

Question

find all matrices A (a) A = 13 (b) A + A = 213

Answered: 1 week ago