Assets Current assets Equity investments (trading) Equipment

Subject: Business    / Accounting
Question
P15-8 (Dividends and Splits) information. Assets Current assets Equity investments (trading) Equipment (net) Intangibles Total assets Instructions Myers Company provides you with the following condensed balance sheet

Assets Liabilties and Stock Long-term liabilties

Current assets 40,000 Current and Lon-term liabilties 100,000

Equity investment (trading ) 60,000 Stockholder’s Equity

Equipment 250,000 Common Stock ( 5 par ) 20,000

Paid in captial in excess of par 110,000

Retained earnings 180,000 310,000

Total liabilties and stockholders’ equity 410,000

For each transaction below, indicate the dollar impact (if any) on the following five items: (1) total assets, (2) common stock, (3) paid-in capital in excess of par, (4) retained earnings, and (5) stockholders’ equity. (Each situation is independent.) (a) Myers declares and pays a $0.50 per share cash dividend. (b) Myers declares and issues a 10% stock dividend when the market price of the stock is $14 per share. (c) Myers declares and issues a 30% stock dividend when the market price of the stock is $15 per share. (d) Myers declares and distributes a property dividend. Myers gives one share of its equity investment (ABC stock) for every two shares of Myers Company stock held. Myers owns 10,000 shares of ABC. ABC is selling for $10 per share on the date the property dividend is declared. (e) Myers declares a 2-for-1 stock split and issues new shares.

intangibles 60,000

Total Assets 410,000

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