A Corporation Reported the Following Amounts on Its Balance Sheet

question 167

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A corporation reported the following amounts on its balance sheet at December 1, 2019: During December of 2019, the following transactions occurred:
December 5
Declared and paid a 20% preferred stock dividend when the market price of the preferred stock was $12 per share.
December 21
Distributed a 2-for-1 stock split of the common stock when the market price of the common stock was $10 per share.
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A)What journal entries are required to record these stock transactions?
B)How many preferred shares are outstanding at December 31, 2019?
C)How many common shares are outstanding at December 31, 2019?
D)What effect did the stock dividend have on the par value of the preferred stock?
E)What effect did the stock split have on the par value of the common stock?

• A)What journal entries are required to record these stock transactions?
• B)How many preferred shares are outstanding at December 31, 2019?
• C)How many common shares are outstanding at December 31, 2019?
• D)What effect did the stock dividend have on the par value of the preferred stock?
• E)What effect did the stock split have on the par value of the common stock?

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Sales Territories

Specific geographical areas or market segments assigned to sales representatives as their area of responsibility for selling a company's products or services.

Sales Presentations

Persuasive demonstrations or pitches made to potential clients with the goal of securing a sale, showcasing products or services and their benefits.

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The raw materials and substances used in the manufacture of a product.