Myers Company provides you with the following condensed balance sheet information.
Myers Company provides you with the following condensed balance sheet information.
| Assets | ||
| Current assets | $ 42,800 | |
| Equity investments (ABC stock; 10,110 shares at cost) | 50,550 | |
| Equipment (net) | 251,500 | |
| Intangibles | 60,780 | |
| Total assets | $405,630 | |
| Liabilities and Stockholders’ Equity | ||
| Current and long-term liabilities | $107,300 | |
| Stockholders’ equity | ||
| Common stock ($5 par) | $ 28,800 | |
| Paid-in capital in excess of par | 119,200 | |
| Retained earnings | 150,330 | 298,330 |
| Total liabilities and stockholders’ equity | $405,630 |
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 $0.57 per share cash dividend.
| (1) | Total assets | decreaseincreaseno effect | $ |
| (2) | Common stock | decreaseincreaseno effect | $ |
| (3) | Paid-in capital in excess of par | decreaseincreaseno effect | $ |
| (4) | Retained earnings | decreaseincreaseno effect | $ |
| (5) | Total stockholders’ equity | decreaseincreaseno effect | $ |
(b)Myers declares and issues a 10% stock dividend when the market price of the stock is $14 per share.
| (1) | Total assets | decreaseincreaseno effect | $ |
| (2) | Common stock | decreaseincreaseno effect | $ |
| (3) | Paid-in capital in excess of par | decreaseincreaseno effect | $ |
| (4) | Retained earnings | decreaseincreaseno effect | $ |
| (5) | Total stockholders’ equity | decreaseincreaseno effect | $ |
(c)Myers declares and issues a 40% stock dividend when the market price of the stock is $15 per share.
| (1) | Total assets | decreaseincreaseno effect | $ |
| (2) | Common stock | decreaseincreaseno effect | $ |
| (3) | Paid-in capital in excess of par | decreaseincreaseno effect | $ |
| (4) | Retained earnings | decreaseincreaseno effect | $ |
| (5) | Total stockholders’ equity | decreaseincreaseno effect | $ |
(d) Myers declares and distributes a property dividend. Myers gives one share of its equity investment (ABC stock) for every two shares of Myers Company stock held. ABC is selling for $12 per share on the date the property dividend is declared.
| (1) | Total assets | decreaseincreaseno effect | $ |
| (2) | Common stock | decreaseincreaseno effect | $ |
| (3) | Paid-in capital in excess of par | decreaseincreaseno effect | $ |
| (4) | Retained earnings | decreaseincreaseno effect | $ |
| (5) | Total stockholders’ equity | decreaseincreaseno effect | $ |
(e)Myers declares a 2-for-1 stock split and issues new shares.
| (1) | Total assets | decreaseincreaseno effect | $ |
| (2) | Common stock | decreaseincreaseno effect | $ |
| (3) | Paid-in capital in excess of par | decreaseincreaseno effect | $ |
| (4) | Retained earnings | decreaseincreaseno effect | $ |
| (5) | Total stockholders’ equity | decreaseincreaseno effect | $ |
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