Question
Question 22(5 points) Silver Corp. declares a 15% stock dividend to its shareholders on 1/18. On that date, the company had 15,000 shares issued and
Question 22(5 points)
Silver Corp. declares a 15% stock dividend to its shareholders on 1/18. On that date, the company had 15,000 shares issued and 12,000 shares outstanding. Silver Corp. common stock has a par value of $0.50 and a fair market value of $12.75. Silver Corp. distributed the stock the dividend to its shareholders on 1/22. On 2/12 Silver Corp. declares a 2 for 1 stock split.
______________________
What journal entry will Silver Corp. record on 1/22, when the stock dividend is distributed?
Question 22 options:
Dr. Stock Dividend Distributable $900
Cr. Dividends Payable $900
Dr. Stock Dividend Distributable $900
Cr. Common Stock $900
N/A; No journal entry is required.
Dr. Dividend Expense $900
Cr. Common Stock $900
Question 23(4 points)
Silver Corp. declares a 15% stock dividend to its shareholders on 1/18. On that date, the company had 15,000 shares issued and 12,000 shares outstanding. Silver Corp. common stock has a par value of $0.50 and a fair market value of $12.75. Silver Corp. distributed the stock the dividend to its shareholders on 1/22. On 2/12 Silver Corp. declares a 2 for 1 stock split.
______________________
What is the impact of distributing the stock dividend on Silver Corp.'s Net Income?
Question 23 options:
Silver Corp.'s Net Income will be reduced by $22,950.
Silver Corp.'s Net Income will be reduced by $21,150.
Silver Corp.'s Net Income will be reduced by $27,562.50
Silver Corp.'s Net Income will be reduced by $28,687.50.
Distributing a stock dividend does not impact net income.
Question 24(5 points)
Silver Corp. declares a 15% stock dividend to its shareholders on 1/18. On that date, the company had 15,000 shares issued and 12,000 shares outstanding. Silver Corp. common stock has a par value of $0.50 and a fair market value of $12.75. Silver Corp. distributed the stock the dividend to its shareholders on 1/22. On 2/12 Silver Corp. declares a 2 for 1 stock split.
______________________
What journal entry will Silver Corp. record on 2/12, when the stock split is declared?
Question 24 options:
Dr. Stock Dividend Distributable $6,000
Cr. Dividends Payable $6,000
Dr. Stock Dividend Distributable $6,000
Cr. Common Stock $6,000
Dr. Dividend Expense $6,000
Cr. Common Stock $6,000
N/A; No journal entry is required.
Question 25(4 points)
Silver Corp. declares a 15% stock dividend to its shareholders on 1/18. On that date, the company had 15,000 shares issued and 12,000 shares outstanding. Silver Corp. common stock has a par value of $0.50 and a fair market value of $12.75. Silver Corp. distributed the stock the dividend to its shareholders on 1/22. On 2/12 Silver Corp. declares a 2 for 1 stock split.
______________________
What is the impact of the stock split on Silver Corp.'s Net Income?
Question 25 options:
Silver Corp.'s Net Income will be reduced by $28,687.50.
Stock splits do not impact net income.
Silver Corp.'s Net Income will be reduced by $21,150.
Silver Corp.'s Net Income will be reduced by $27,562.50
Silver Corp.'s Net Income will be reduced by $22,950.
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