ACC Problem 15-8 Myers Company

 Problem 15-8

Myers Company provides you with the following condensed balance sheet information.

Assets
Current assets $ 40,400
Equity investments (ABC stock; 10,980 shares at cost) 54,900
Equipment (net) 257,300
Intangibles 60,970
Total assets $413,570
Liabilities and Stockholders’ Equity
Current and long-term liabilities $107,100
Stockholders’ equity
Common stock ($5 par) $ 29,400
Paid-in capital in excess of par 118,600
Retained earnings 158,470 306,470
Total liabilities and stockholders’ equity $413,570

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 $0.5 per share cash dividend.
(b) Myers declares and issues a 10% stock dividend when the market price of the stock is $13 per share.
(c) Myers declares and issues a 40% stock dividend when the market price of the stock is $15 per share.
(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 $10 per share on the date the property dividend is declared.
(e) Myers declares a 3-for-1 stock split and issues new shares.