Apply basic counselling skills in a client-centered manner, to conduct a 10-minute counselling session in class. You will be expected to demonstrate each of the basic counselling skills within your….
The preferred stock is noncumulative and nonparticipating. During 2017, the following transac-tions occurred: a. On March 1, declared a cash dividend of $6,400 on preferred stock. Paid the dividend on April 1.
On January 1, 2017, Svenberg Inc.’s Stockholders’ Equity category appeared as follows:
The preferred stock is noncumulative and nonparticipating. During 2017, the following transac-tions occurred:
a. On March 1, declared a cash dividend of $6,400 on preferred stock. Paid the dividend on April 1.
b. On June 1, declared an 8% stock dividend on common stock. The current market price of the common stock was $26. The stock was issued on July 1.
c. On September 1, declared a cash dividend of $0.70 per share on the common stock; paid the dividend on October 1.
d. On December 1, issued a 3-for-1 stock split of common stock, when the stock was selling for $30 per share.
Required
1. Explain each transaction’s effect on the stockholders’ equity accounts and the total stock-holders’ equity.
2. Develop the Stockholders’ Equity category of the balance sheet. Assume that the net income for the year was $720,000.
3. Write a paragraph that explains the difference between a stock dividend and a stock split.