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Rice Corporation Reported the Following Shareholders' Equity Items on December $153,200\quad\$ 153,200

Question 80

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Rice Corporation reported the following shareholders' equity items on December 31,2017:
Preferred shares,$5,cumulative,7,000 shares
authorizad, 1,000 shares issued $153,200\quad\$ 153,200 Common shares,10,000 shares authorized,
 5,000 shares issued 550,000 Retained earnings 455,300\begin{array}{ll}\text { 5,000 shares issued } & 550,000 \\\text { Retained earnings } & 455,300\end{array} Consider each of the following cases independently:
1_How many common shares would be outstanding if Rice Corporation declares a 4-for-1 stock split?
2_Prepare the journal entry if Rice Corporation declared a 15% stock dividend on the common shares when the market price of common shares was $130 per share.
3_Prepare the journal entry if Rice Corporation declared a 45% stock dividend on the common shares when the market price of common shares was $130 per share.
4_Give the journal entry to record the sale of 800 common shares for $125 per share.

Correct Answer:

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1)20,000
\[\begin{array}{l}
\quad\quad\ ...

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