Tom Company (which uses a has the following account balances after adjusting ent
ID: 2397431 • Letter: T
Question
Tom Company (which uses a has the following account balances after adjusting entries at December 31, 2012: inventory syste 227 100, dise Inventory (12/31/2012) quipment 105, 350, 880, 67 120, 27 10, 47 85, 260, 8, n Stock ($.50 par) s Payable (due 2040) s Payable reasury Stock, Common (19,000 shares) Stock 696 ($ 10 par) Paid-in Capital in Excess of Par Value, Preferred ost of Goods Sold Interest Expense Revenue 23, 56, Paid-in Capital from Treasury Stock Transactions, Common lowance for Doubtful Accounts 95, 30, perating Expenses Paid-in Capital in Excess of Par Value, Common tained Earnings (1/1/2012) If Tom were to declare and distribute a 2% stock dividend to shareholders on January 1,2013 at a time where the market price of the common stock was $2 per share, the amount of retained capitalized would be: @ $27,120. O $14,000. $28,00 $7,000. None of the aboveExplanation / Answer
Total shares Issued 700000 (350000/0.5) Less: traesury stock 19000 Total shares outstanding 681000 x stock dividend % x 2% Stock dividend shares 13620 x $2 (share Price) $ 27,240 Retained Capitalized Option E None of the above.