Joanne asked in Business & FinanceInvesting · 2 months ago

Stock split and stock dividend (LO4) Austin Power Company has the following balance sheet:?

Hello, the question is as below and I have attached the photo of the questions as well, I need help with part B. Thank you! 

Stock split and stock dividend (LO4) Austin Power Company has the following balance sheet:

Assets

Cash $ 60,000

Accounts receivable 300,000

Fixed assets 800,000

Total assets $1,160,000 

Liabilities

 Accounts payable $ 260,000

 Notes payable 70,000

 Common stock

     100,000 shares @ $2 par 200,000

 Capital in excess of par 150,000

 Retained earnings 480,000

 Total liabilities & Owners Equity  $1,160,000

The firm’s has a market price of $11 a share.

b. Show the effect on the capital accounts of a 10 percent stock dividend. Part b is separate from part a. In part, b do not assume the stock split has taken place.

Attachment image

1 Answer

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  • kswck2
    Lv 7
    2 months ago

    Not doing your homework for you. 

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