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Please Answer both pictures. Show work:) ICI ACILISE11-08 Your answer is partially correct. Try again. The stockholders' equity section of Ayayal Corp.'s balance sheet consists
Please Answer both pictures. Show work:)
ICI ACILISE11-08 Your answer is partially correct. Try again. The stockholders' equity section of Ayayal Corp.'s balance sheet consists of common stock ($7 par) $840,000 and retained earnings $400,000. A 10% stock dividend (12,000 shares) is declared when the market price per share is $15. (a) Show the before-and-after effects of the dividend on the components of stockholders' equity. Before Dividend After Dividend Stockholders' Equity Paid-in Capital Common Stock tock , 840000 924000 Paid-in Capital in Excess of Par Value-Common St 108000 Total Paid-in Capital 840000 1032000 Retained Earnings 460000 268000 Total Stockholders' Equity 1300000 1300000 Brief Exercise 11-13 (Part Level Submission) Skysong, Inc. is considering these two alternatives to finance its construction of a new $1.20 million plant: 1. 2. Issuance of 120,000 shares of common stock at the market price of $10 per share. Issuance of $1.20 million, 6% bonds at face value. (a) Complete the table. (Round earnings per share to 2 decimal places, e.g. $2.66.) Issue Stock $1,573,000 Issue Bonds $1,573,000 Income before interest and taxes Interest expense from bonds Income before income taxes Income tax expense (30%) Net income Outstanding shares 790,000 Earnings per shareStep by Step Solution
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