Jackson Enterprises has the following capital (equity) accounts: Common stock ($1 par;...
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Finance
Jackson Enterprises has the following capital (equity) accounts:
Common stock ($1 par; 100,000 shares outstanding)
$100,000
Additional paid-in capital
-50,000
Retained earnings
200,000
The board of directors has declared a 20 percent stock dividend on January 1 and a $0.20 cash dividend on March 1. What changes occur in the capital accounts after each transaction if the price of the stock is $5? Round the number of shares outstanding to the nearest whole number and the other answers to the nearest dollar.
The impact of the 20 percent stock dividend:
Common stock ($ _________ par; _________ shares outstanding)
$ ____________
Additional paid-in capital
$
Retained earnings
$
The impact of the $0.20 a share cash dividend:
Common stock ($ __________ par; ___________ shares outstanding)
$ ____________
Additional paid-in capital
$ ____________
Retained earnings
$ ___________
Answer & Explanation
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