Please FULLY answer this question from part A to J. This question is a big part
ID: 2436390 • Letter: P
Question
Please FULLY answer this question from part A to J. This question is a big part of my grade. I appreciate your attention to details. Thank you in advance.
This is the table. Thank you :)
June 30th, Jackson company has the following balances Common Stock (Par Value 50; 50,000 shares issued and outstanding) 2,500,000 Paid in Capital in Excuses of Par- C/S 600,000 etained Earnings 4,200.000 Jackson would like you to indicate the $ amount and impact on the designated elements of the financial statements in the table. Indicate NE if there is no effect. Indicate decreases bv putting the amount in parenthesis A. Jackson Company declares and issues a 10% stock Dividend when the stock is trading for 65 per share. (Indicate the Dollar amount and effect to Assets, Liabilities, Stockholder's Equity, paid in capital in excess (APIC), Retained Earning, and Net income) B. Jackson company declares and issues a 50% stock dividend when the stock is trading for 65 per share. (Indicate the Dollar amount and effect to Assets, Liabilities, Stockholder's Equity, paid in capital in excess (APIC), Retained Earning, and Net income) C. Jackson company exchanges 1000 shares of common stock patent with market value of 85000. (Indicate the Dollar amount and effect to Assets, Liabilities, Stockholder's Equity, paid in capital in excess (APIC), Retained Earning, and Net income) D. Jackson company issues a 2 for 1 stock split. (Indicate the Dollar amount and effect to Assets, Liabilities, Stockholder's Equity, paid in capital in excess (APIC), Retained Earning, and Net income) E. Jackson company declares cash dividend. (Indicate the Dollar amount and effect to Assets, Liabilities, Stockholder's Equity, paid in capital in excess (APIC), Retained Earning, and Net income) F. Jackson company bought 500 shares of treasury shares. (Indicate the Dollar amount and effect to Assets, Liabilities, Stockholder's Equity, paid in capital in excess (APIC), etained Earning, and Net income) G. Approved retained earnings restrictions. (Indicate the Dollar amount and effect to Assets, Liabilities, Stockholder's Equity, paid in capital in excess (APIC), Retained Earning, and Net income) H. Jackson company (Indicate the Dollar amount and effect to Assets, Liabilities, Stockholder's Equity, paid in capital in excess (APIC), Retained Earning, and Net income) resold 500 shares of the treasury shares in #6 for 60 per share. I. Jackson Company pays the cash dividend declared in #5. (Indicate the Dollar amount and effect to Assets, Liabilities, Stockholder's Equity, paid in capital in excess (APIC), Retained Earning, and Net income) J. Jackson company issues property dividend that has a book value of 100,000 but has a market value of 125,000. (Indicate the Dollar amount and effect to Assets, Liabilities, Stockholder's Equity, paid in capital in excess (APIC), Retained Earning, and Net income)Explanation / Answer
Item Assets Liabilities Stockholders' Equity Paid in Capital in Excess (APIC) Retained Earnings Net Income A. 10% stock dividend $250,000 $75,000 ($325,000) B. 50% Stock dividend $1,375,000 $412,500 ($1,787,500) C. Exchange 1000 shares for patent $85,000 $50,000 $35,000 D. Stock Split 2-1 NE NE E. Cash Dividend Declared $82,500 ($82,500) F. Treasury shares bought ($25,000) ($25,000) G. Retained Earning restrictions NE H. Sold treasury stock $30,000 $30,000 I. Cash dividend paid ($82,500) ($82,500) J. Property Dividend paid ($125,000) ($125,000) $25,000 10% stock dividend = 50000 x 10% =5000 shares @$65 each 50% stock dividend = 55000 x 50% = 27500 share @ $65 each (5000+50000) It is assumed that cash dividend is $0.50 per share outstanding Numbers of shares outstanding Common stock issued 50000 10% stock dividend 5000 50% stock dividend 27500 Stock split 2-1 82500 Total numbers of shares 165000 To pay property dividend, property is first revalued, then property dividend is paid for $125000