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ACC Problem 15-8 Myers Company




Question;Problem 15-8Myers Company provides you with the following condensed balance sheet information.AssetsCurrent assets $ 40,400Equity investments (ABC stock, 10,980 shares at cost) 54,900Equipment (net) 257,300Intangibles 60,970Total assets $413,570Liabilities and Stockholders? EquityCurrent and long-term liabilities $107,100Stockholders? equity Common stock ($5 par) $ 29,400 Paid-in capital in excess of par 118,600 Retained earnings 158,470 306,470Total liabilities and stockholders? equity $413,570For each transaction below, indicate the dollar impact (if any) on the following five items: (1) total assets, (2) common stock, (3) paid-in capital in excess of par, (4) retained earnings, and (5) stockholders? equity. (Each situation is independent.)(a) Myers declares and pays a $0.5 per share cash dividend.(b) Myers declares and issues a 10% stock dividend when the market price of the stock is $13 per share.(c) Myers declares and issues a 40% stock dividend when the market price of the stock is $15 per share.(d) Myers declares and distributes a property dividend. Myers gives one share of ABC stock for every two shares of Myers Company stock held. ABC is selling for $10 per share on the date the property dividend is declared.(e) Myers declares a 3-for-1 stock split and issues new shares.


Paper#41958 | Written in 18-Jul-2015

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