Business, 24.08.2021 16:10, akhawajaaa
The Western Pipe Company has the following capital section in its balance sheet. Its stock is currently selling for $6 per share.
Common stock (40,000 shares at $2 par)$80,000
Capital in excess of par 80,000
Retained earnings 180,000
Total equity$340,000
The firm intends to first declare a 10 percent stock dividend and then pay a 15-cent cash dividend (which also causes a reduction of retained earnings).
Show the capital section of the balance sheet after the first transaction and then after the second transaction. (Do not round intermediate calculations and round your answers to the nearest whole dollar.)
Western Pipe Co.
After Stock Dividend
Common stock
Capital in excess of par
Retained earnings
Total equity$0
Western Pipe Co.
After Stock Dividend
Common stock
Capital in excess of par
Retained earnings
Total equity$0
Answers: 1
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The Western Pipe Company has the following capital section in its balance sheet. Its stock is curren...
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