Answer Happy

Eddie Baker Corporation provides you with the following
condensed balance sheet information:
ASSETS
Current assets


$ 40,000
Equity investments


60,000
Equipment (net)

250,000
Intangible assets

60,000
Total Assets

$
410,000
LIABILITIES & STOCKHOLDERS’ EQUITY
Current & long-term
liabilities
$ 100,000
Common stock ($5 par)
$ 20,000
APIC –
C/S

110,000
Retained earnings
180,000
310,000
Total liabilities & SE

$
410,000
Instructions:
For each of the following transactions, 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. Baker declares and pays a $0.50 per share cash dividend
b. Baker declares and issues a 10% stock dividend when the
market price of the stock is $14 per
share
c. Baker declares and issues a 30% stock dividend when the
market price of the stock is $15 per
share
d. Baker declares a 2-for-1 stock split and issues new
shares
e. Baker declares and distributes a property dividend. Baker
gives one share of its equity
investment (ABC stock) for every two shares
of Baker Corporation stock held. Baker owns
10,000 shares of ABC. ABC is selling for $10
per share on the date the property dividend is
declared.
Total Assets
Common Stock
APIC – C/S
Retained Earnings
Stockholders’ Equity
b.
c.
d.
e.