ACC206 Strayer Advantages Of Cash And Stock Dividends Accounting Help

/in /by

Get perfect grades by consistently using www.essayjunction.com. Place your order and get a quality paper today. Take advantage of our current 20% discount by using the coupon code GET20


Order a Similar Paper Order a Different Paper

  • Compare the major advantages of cash dividends and stock dividends that investors should look for when attempting to choose between two (2) publicly traded companies. Discuss your preference for either cash dividends or stock dividends, and support your position with real-world examples of the advantages of your preference.
Brief Exercise 14-03

Bramble Corporation has 47,500 shares of $12 par value common stock outstanding. It declares a 15% stock dividend on December 1 when the market price per share is $19. The dividend shares are issued on December 31.

Save your time - order a paper!

Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines

Order Paper Now

Prepare the entries for the declaration and issuance of the stock dividend. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts.)

Date

Account Titles and Explanation

Debit

Credit

Brief Exercise 14-05

For the year ending December 31, 2020, Lily Inc. reports net income $132,000 and cash dividends $81,000.

Determine the balance in retained earnings at December 31, assuming the balance in retained earnings on January 1, 2020, was $216,000.

Balance in retained earnings $
Brief Exercise 14-07

The following information is available for Lily Corporation for the year ended December 31, 2020: cost of goods sold $206,000, sales revenue $464,000, other revenues and gains $51,000, and operating expenses $70,000.

Assuming a corporate tax rate of 30%, prepare an income statement for the company.

LILY CORPORATION
Income Statement

$

$
Exercise 14-02 a-c (Part Level Submission)

Sunland Corporation was organized on January 1, 2019. During its first year, the corporation issued 2,000 shares of $50 par value preferred stock and 106,000 shares of $10 par value common stock. At December 31, the company declared the following cash dividends: 2019, $6,500; 2020, $14,400; and 2021, $29,000.
(a)

Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 7% and noncumulative.

2019

2020

2021
Allocation to preferred stock $

 $

 $
Allocation to common stock $

 $

 $
(b)

Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 9% and cumulative.

2019

2020

2021
Allocation to preferred stock $

 $

 $
Allocation to common stock $

 $

 $
(c)

Journalize the declaration of the cash dividend at December 31, 2021, under part (b). (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts.)

Date

Account Titles and Explanation

Debit

Credit
Dec. 31

Exercise 14-05 a-b (Part Level Submission) (Video)

On October 1, Cullumber Corporation’s stockholders’ equity is as follows.

Common stock, $5 par value $376,000
Paid-in capital in excess of par—common stock 28,000
Retained earnings 154,000
Total stockholders’ equity $558,000

On October 1, Cullumber declares and distributes a 10% stock dividend when the market price of the stock is $14 per share.
(a)

Compute the par value per share (1) before the stock dividend and (2) after the stock dividend.

Par value before the stock dividend $
Par value after the stock dividend $
(b)

Indicate the balances in the three stockholders’ equity accounts after the stock dividend shares have been distributed.

Common stock $
Paid-in capital in excess of par value $
Retained earnings $
Exercise 14-14 a1-a3 (Part Level Submission)

Sandhill Corporation has outstanding at December 31, 2020, 46,500 shares of $22 par value, cumulative, 7% preferred stock and 201,500 shares of $5 par value common stock. All shares were outstanding the entire year. During 2020, Sandhill earned total revenues of $2,020,000 and incurred total expenses (except income taxes) of $1,140,000. Sandhill’s income tax rate is 32%.
(a1)

Calculate Sandhill’s 2020 net income.

Net Income $
(a2)

Caculate Sandhill’s 2020 preferred dividends. (Round answer to 0 decimal places, e.g. 5,275.)

Preferred dividends $
(a3)

Compute Sandhill’s 2020 earnings per share. (Round answer to 2 decimal places, e.g. 2.25.)

Earnings per share $
Problem 14-01A a-c (Part Level Submission) (Video)

On January 1, 2020, Cullumber Corporation had the following stockholders’ equity accounts.

Common Stock ($26 par value, 58,500 shares issued and outstanding) $1,521,000
Paid-in Capital in Excess of Par—Common Stock 192,000
Retained Earnings 622,000

During the year, the following transactions occurred.

Feb. 1 Declared a $1 cash dividend per share to stockholders of record on February 15, payable March 1.
Mar. 1 Paid the dividend declared in February.
Apr. 1 Announced a 2-for-1 stock split. Prior to the split, the market price per share was $38.
July 1 Declared a 15% stock dividend to stockholders of record on July 15, distributable July 31. On July 1, the market price of the stock was $14 per share.
31 Issued the shares for the stock dividend.
Dec. 1 Declared a $0.40 per share dividend to stockholders of record on December 15, payable January 5, 2021.
31 Determined that net income for the year was $359,000.
(a)

Journalize the transactions and the closing entries for net income and dividends. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)

Date

Account Titles and Explanation

Debit

Credit

(To close net income)

(To close stock dividends)

(To close cash dividends)
(b)

Enter the beginning balances, and post the entries to the stockholders’ equity accounts. (Note: Open additional stockholders’ equity accounts as needed.) (Post entries in the order of journal entries presented in the previous part.)

Common Stock

Date

Explanation

Ref

Debit

Credit

Balance

Balance

√

Common Stock Dividends Distributable

Date

Explanation

Ref

Debit

Credit

Balance

Paid-in Capital in Excess of Par—Common Stock

Date

Explanation

Ref

Debit

Credit

Balance

Balance

√

Retained Earnings

Date

Explanation

Ref

Debit

Credit

Balance

Balance

√

Net income

Stock dividend

Cash dividend

Cash Dividends

Date

Explanation

Ref

Debit

Credit

Balance

Stock Dividends

Date

Explanation

Ref

Debit

Credit

Balance

(c)

Prepare a stockholders’ equity section at December 31. (Enter account name only and do not provide descriptive information.)

CULLUMBER CORPORATION
Balance Sheet (Partial)

$

$
Writerbay.net

We offer the best essay writing services to students who value great quality at a fair price. Let us exceed your expectations if you need help with this or a different assignment. Get your paper completed by a writing expert today. Nice to meet you! Want 15% OFF your first order? Use Promo Code: FIRST15. Place your order in a few easy steps. It will take you less than 5 minutes. Click one of the buttons below.


Order a Similar Paper Order a Different Paper