Question
The following condensed balance sheet information has been prepared by the controller of N2N2 Company Balance Sheet December 31, 2016 Assets Current assets $ 40,000
The following condensed balance sheet information has been prepared by the controller of
N2N2 Company | ||
Balance Sheet | ||
December 31, 2016 | ||
Assets | ||
Current assets | $ 40,000 | |
Investments in equity securities (10,000 shares) | 60,000 | |
Equipment, net | 250,000 | |
Intangibles | 60,000 | |
Total Assets | 410,000 | |
Liabilities and Equity | ||
Current liabilities | 75,000 | |
Non-current liabilities | 25,000 | |
Common stock ($5 par) | 20,000 | |
Paid in capital in excess of par | 110,000 | |
Retained earnings | 180,000 | |
Total Liabilities and Equity | 410,000 | |
Using the attached T-account template, prepare the entries to recognize the following transactions.
Declares and pays a $ 0.50 per share cash dividend
Declares and issues a 10% stock dividend when the market price of the stock is $14 per share
Declares and issues a 30% stock dividend when the market price of the stock is $15 per share
Declares and issues a property dividend as follows. N2N2 gives one share of its investment in equity securities for every 2 shares that a N2N2 investor holds of N2N2 common stock. The equity investment shares are selling for $10 per share, in an active market, on the date the property dividend is declared by the board of directors.
Declares a 2 for 1 stock split and issues new shares to the stockholders
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