60.1K

Verified Solution

Link Copied!

A & B

Stock dividend share Firm Columbia Paper has the following stockholders' equity account. The firm's common stock has a current market price of $30 per Preferred stock Common stock (10,000 shares at $2 par) Paid-in capital in excess of par Retained earnings Total stockholders' equity $100,000 20,000 280,000 100,000 $500,000 a. Show the effects on Columbia of a 5% stock dividend b. In light of your answers to part a discuss the effects of stock dividend on stockholders' equity a. The preferred stock of Columbia after a 5% stock dividend is $ (Round to the nearest dollar) The common stock of Columbia after a 5% stock dividend is SL (Round to the nearest dollar) The paid in capital in excess of par of Columbia after a 5% stock dividend is (Round to the nearest dollar) The retained earnings of Columbia after a 5% stock dividend is $ (Round to the nearest dollar) The total stockholder's equity of Columbia after a 5% stock dividend is (Round to the nearest dollar) U n to the nearest dowar) b. Which of the following statements about the effects of stock dividend on stockholders' equity is false? (Select the best answer below) O A. A stock dividend redistributes retained earnings into common stock and paid.in capital accounts OB. A stock dividend increases paid.in capital O C. A stock dividend does not cause a decrease in the overall stockholders' equity account OD. A stock dividend causes overall stockholders' equity account to decrease

Answer & Explanation Solved by verified expert

See Answer