Ruestion 2 You have been given the following balance sheet: Babic Company Balance Sheet December 31, 2014 Assets Current Assets Cash $ 32,000 Marketable Securities 11,000 Accounts Receivable 109,000 146,000 Inventory Total Current Assets $ 298,000 Tangible Assets Land $ 910.000 $1.070.000 Equipment Less: Accumulated Depreciation (326 000) 744 000 1.654 000 Marketable Securities 11,000 109,000 Accounts Receivable Inventory Total Current Assets 146,000 $ 298,000 Tangible Assets Land $ 910,000 $1,070,000 Equipment Less: Accumulated Depreciation (326.000) 744.000 1654 000 Total Assets $1,952,000 Liabilities and Stockholders' Equity. Current Liabilities Accounts Payable $ 83,000 22.000 Accrued Liabilities Total Current Liabilities $ 105.000 Long term Liabilities 678,000 Required: At the end of year, the company decides to pay stock dividend The market value is $15. The company ask you to explain the adjustment that should be done for the balance sheet in both following scenarios 1 The company decides to issue 20 of stock dividends (Marks) 2. The company decides to issue 30 of stock dividends 2 Marks) Oar IE A I. XO a 6 *** For the toolbar press ALT-F10 Por ALT+FM+F10 Mac) BIVS Paragraph Arsa * X X SB EE | 0 X . +] 3 BE B $ 100.000 Stockholders' Equity Common Stock (Par value $ 10) Paid-In Capital in Excess of Par Retained Earnings 141,000 952.000 $1 193,000 (24.000) Less Treasury Stock Total Liabilities and Stockholders' Equity 1 169.000 $1.952.000 Required