Question
The? stockholders' equity for Heavenly DessertsHeavenly Desserts ?Drive-Ins ?(HDHD?) on JuneJune 1212?, 20152015?, ?follows: Stockholders' Equity Common Stock,$0.10 par, 2, 100,000 shares authorized,700,000 issued $70,000
The? stockholders' equity for
Heavenly DessertsHeavenly Desserts
?Drive-Ins
?(HDHD?)
on
JuneJune
1212?,
20152015?,
?follows:
Stockholders' Equity
Common Stock,$0.10 par, 2, 100,000 shares
authorized,700,000 issued $70,000
Paid-in Capital in excess of par-common 1,506,773
Retained earnings 7,100,000
Accumulated other comprehensive income(loss) (175,000)
Total stockholder's equity $ 8,501,773
On
JuneJune
1212?,
20152015?,
the market price of
HDHD
common stock was
$ 17$17
per share. Assume
HDHD
declared and distributed
aa
1212?%
stock dividend on this date.
1. | Journalize the declaration and distribution of the stock dividend. |
2. | Prepare the? stockholders' equity section of the balance sheet after the stock dividend. |
3. | Why is total? stockholders' equity unchanged by the stock? dividend? |
4. | Suppose HDHD had a cash balance of$ 560 comma 000$560,000 onJuneJune1313?, 20152015. What is the maximum amount of cash dividendsHDHD can? declare? |
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