The stockholders equity for Heavenly Desserts Drive Ins (HD) on December 31, 2010, follows Stockholders Equity Common stock , $0 80 par, 2,600,000 shares authorized, 300,000 shares issued $ 240,000 Paid in capital in excess of par common 307,200 Retained earnings 7,122,000 Other equity (200,000) To...

Req 1 Journal DATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT May 11 Retained Earnings ...

The stockholders equity for Heavenly Desserts Drive-Ins (HD) on December 31, 2010, follows: Stockholders Equity Common stock

Question:

The stockholders equity for Heavenly Desserts Drive-Ins (HD) on December 31, 2010, follows:
Stockholders’ Equity
, $0.80 par, 2,600,000 shares
authorized, 300,000 shares issued...................... $ 240,000
Paid-in capital in excess of par common............... 307,200
Retained earnings.................................................... 7,122,000
Other equity............................................................ (200,000)
Total stockholders equity.................................. $7,469,200
On May 11, 2011, the market price of HD common stock was $19 per share. Assume HD distributed a 15% stock on this date.

Requirements
1. Journalize the of the stock Prepare the stockholders equity section of the after the stock Why is total stockholders equity unchanged by the stock Suppose HD had a cash balance of $560,000 on May 12, 2011. What is the maximum amount of cash dividends HD can declare?

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