Myers Company provides you with the following condensed balance sheet information.\nAssets Liabilities and Stockholders’ Equity\nCurrent assets $ 40,000
Myers Company provides you with the following condensed balance sheet information.
\r\nAssets Liabilities and Stockholders’ Equity
\r\nCurrent assets $ 40,000 Current and long-term liabilities $100,000
\r\nEquity investments (trading) 60,000 Stockholders’ equity
\r\nEquipment (net) 250,000 Common stock ($5 par) $ 20,000
\r\nIntangibles 60,000 Paid-in capital in excess of par 110,000
\r\nTotal assets $410,000 Retained earnings 180,000 310,000
\r\nTotal liabilities and stockholders’ equity $410,000
\r\nInstructions
\r\nFor each transaction below, indicate the dollar impact (if any) on the following five items: (1) total assets,
\r\n(2) common stock, (3) paid-in capital in excess of par, (4) retained earnings, and (5) stockholders’ equity.
\r\n(Each situation is independent.)
\r\n(a) Myers declares and pays a $0.50 per share cash dividend.
\r\n(b) Myers declares and issues a 10% stock dividend when the market price of the stock is $14 per share.
\r\n(c) Myers declares and issues a 30% stock dividend when the market price of the stock is $15 per share.
\r\n(d) Myers declares and distributes a property dividend. Myers gives one share of its equity investment
\r\n(ABC stock) for every two shares of Myers Company stock held. Myers owns 10,000 shares of ABC.
\r\nABC is selling for $10 per share on the date the property dividend is declared.
\r\n(e) Myers declares a 2-for-1 stock split and issues new shares.