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Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello
Edition 17ISBN: 978-0078025778Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello
Edition 17ISBN: 978-0078025778 Exercise 18
The following is a summary of the transactions affecting the stockholders' equity of Dry Wall. Inc., during the current year:
Note: Parentheses ( ) indicate a reduction in stockholders' equity. Asterisk * indicates no change in total shareholders' equity.
Instructions
a. Prepare a statement of stockholders', equity for the year. Use the column headings and beginning balances shown below. (Notice that all additional paid-in capital accounts are combined into a single column.)
b. What was the overall effect on total stockholders' equity of the 10 percent stock dividend of 15,000 shares? What was the overall effect on total stockholders' equity of the cash dividends declared? Do these two events have the same impact on stockholders' equity? Why or why not?
Note: Parentheses ( ) indicate a reduction in stockholders' equity. Asterisk * indicates no change in total shareholders' equity.Instructions
a. Prepare a statement of stockholders', equity for the year. Use the column headings and beginning balances shown below. (Notice that all additional paid-in capital accounts are combined into a single column.)
b. What was the overall effect on total stockholders' equity of the 10 percent stock dividend of 15,000 shares? What was the overall effect on total stockholders' equity of the cash dividends declared? Do these two events have the same impact on stockholders' equity? Why or why not?Explanation
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b. Declaration/distribution of a 10% st...
Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello
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