Question :
164. The following account balances appear the balance sheet of Osgood : 1239284
164. The following account balances appear on the balance sheet of Osgood Industries:Common Stock (300,000 shares authorized, $100 par): $10,000,000Paid-in Capital in Excess of Par – Common Stock: $2,000,000;Retained earnings: $45,000,000.The board of directors declared a 2% stock dividend when the market price of the stock was $135 a share. Osgood reported no income or loss for the current year.Required:
(1)
Journalize the entries to record
a.
the declaration of the dividend, capitalizing an amount equal to market value; and
b.
the issuance of the stock certificates.
(2)
Determine the following amounts before the stock dividend was declared:
a.
Total paid-in capital;
b.
Total retained earnings; and
c.
Total stockholders’ equity.
(3)
Determine the following amounts after the stock dividend was declared and closing entries were recorded at the end of the year:
a.
Total paid-in capital;
b.
Total retained earnings; and
c.
Total stockholders’ equity.
165. On March 4, of the current year, Barefoot Bay, Inc. reacquired 5,000 shares of its common stock at $89 per share. On August 7, Barefoot Bay sold 3,500 of the reacquired shares at $100 per share. The remaining 1,500 shares were sold at $88 per share on November 29.Required:
(1)
Journalize the transaction of March 4, August 7, and November 29.
(2)
What is the balance in Paid-in Capital from Sale of Treasury Stock on December 31, of the current year?
(3)
Why might Barefoot Bay Inc. have purchased the treasury stock?
166. Marcos Company, which had 35,000 shares of common stock outstanding, declared a 4-for-1 stock split.Required:
(1)
What will be the number of shares outstanding after the split?
(2)
If the common stock had a market price of $280 per share before the stock split, what would be an approximate market price per share after the split?
167. Selected transactions completed by Breezeway Construction during the current fiscal year are as follows:
February 3
Split the common stock 2 for 1 and reduced the par from $40 to $20 per share. After the split there were 250,000 common shares outstanding.
April 10
Declared semiannual dividends of $1.50 on 18,000 shares of preferred stock and $0.08 on the common stock to stockholders of record on May 10, payable on June 9.
June 9
Paid the cash dividends.
October 10
Declared semiannual dividends of $1.50 on the preferred stock and $0.04 on the common stock (before the stock dividend). In addition, a 2% common stock dividend was declared on the common stock outstanding. The fair market value of the common stock is estimated at $36.
December 9
Paid the cash dividends and issued the certificates for the common stock dividend.
Required: Journalize the transactions.
