Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On July 1, 2020, Jones Limited had the following share structure: Common shares (par $1; 200,000 authorized shares; 160,000 issued and outstanding) Contributed surplus Retained

image text in transcribed

On July 1, 2020, Jones Limited had the following share structure: Common shares (par $1; 200,000 authorized shares; 160,000 issued and outstanding) Contributed surplus Retained earnings $160,000 98,000 182,000 Required: Complete the following table based on three independent cases involving share transactions: (Round your par value answers to 2 decimal places.) Case 1: The board of directors declared and issued a 10 percent stock dividend when the share price was $8.00 per share. Case 2: The board of directors declared and issued a 100 percent stock dividend when the share price was $8.00 per share. Case 3: The board of directors voted a 2-for-1 stock split. The share price prior to the split was $8.00 per share. Case 1 Case 2 Case 3 Items Before Share Transactions After 10% Stock Dividend After 100% Stock Dividend After Stock Split $ 1 $ 0 $ 0 $ 0 $ 0 Number of shares outstanding Par per share Common shares account Contributed surplus Retained Earnings Total shareholders' equity 98,000 182,000 280,000 $ $ 0 $ 0 $ 0

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

Principles of Auditing and Other Assurance Services

Authors: Ray Whittington, Kurt Pany

19th edition

978-0078025617

Students also viewed these Accounting questions