Task: Myers Company provides you with the following condensed balance sheet information.
Assets
Current assets 43,600
Equity investments (ABC stock; 10,290 shares at cost) 41,160
Equipment (net) 252,900
Intangibles 60,310
Total assets 397,970
Liabilities and Stockholders' Equity
Current and long-term liabilities 104,800
Stockholders' equity
Common stock ($5 par) $ 21,000
Paid-in capital in excess of par 116,400
Retained earnings 155,770 293,170
Total liabilities and stockholders' equity 397,970
For 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 $0.6 per share cash dividend.
(1) Total assets
(2) Common stock
(3) Paid-in capital in excess of par
(4) Retained earnings
(5) Total stockholders' equity
(b) Myers declares and issues a 10% stock dividend when the market price of the stock is $13 per share.
(1) Total assets
(2) Common stock
(3) Paid-in capital in excess of par
(4) Retained earnings
(5) Total stockholders' equity
(c) Myers declares and issues a 40% stock dividend when the market price of the stock is $15 per share.
(1) Total assets
(2) Common stock
(3) Paid-in capital in excess of par
(4) Retained earnings
(5) Total stockholders' equity
(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 $11 per share on the date the property dividend is declared.
(1) Total assets
(2) Common stock
(3) Paid-in capital in excess of par
(4) Retained earnings
(5) Total stockholders' equity
(e) Myers declares a 2-for-1 stock split and issues new shares.
(1) Total assets
(2) Common stock
(3) Paid-in capital in excess of par
(4) Retained earnings
(5) Total stockholders' equity