Firm A had the following selected items on its balance sheet:
Cash $ 28,000,000
Common stock ($50 par; 2,000,000 shares outstanding) 100,000,000
Additional paid-in capital 10,000,000
Retained earnings 62,000,000
How would each of these accounts appear after:
a. a cash dividend of $1 per share?
Cash $ 28,000,000
Common stock ($50 par; 2,000,000 shares outstanding) 100,000,000
Additional paid-in capital 10,000,000
Retained earnings 62,000,000
How would each of these accounts appear after:
a. a cash dividend of $1 per share?
b. a 5 percent stock dividend (fair market value is $100 per share)?
c. a one-for-two reverse split?
TUTORIAL PREVIEW
a. a cash dividend of $1 per share?
Assuming
that the cash dividend is also distributed:
Cash $
26,000,000
File name Firm
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