lOMoARcPSD|46240884
Last revised April 2022
SOLUTIONS MANUAL
to accompany
Fundamental Accounting Principles
17th Canadian Edition
by Larson/Dieckmann/Harris
Prepared by:
John Harris, Seneca College
Technical checks by: Rhonda Heninger, SAIT
Solutions Manual to accompany Fundamental Accounting Principles, 17th Canadian Edition. © 2022
McGraw Hill Ltd. 13-1
Downloaded by damaris mutuli ()
, lOMoARcPSD|46240884
Last revised April 2022
Chapter 13 Corporate Reporting: Profit, Earnings per Share, and
Retained Earnings
Solutions Manual to accompany Fundamental Accounting Principles, 17th Canadian Edition. © 2022
McGraw Hill Ltd. 13-2
Downloaded by damaris mutuli ()
, lOMoARcPSD|46240884
Last revised April 2022
EXERCISES
Exercise 13-1 (20 minutes)
Total Assets Total Liabilities Total Equity
$5,000 cash dividend Decrease NC Decrease
7% stock dividend NC NC NC
40% stock dividend NC NC NC
7-for-1 stock split NC NC NC
A cash dividend is a regular cash payment by a company to shareholders. ... Stock dividends,
on the other hand, are literally a percentage payment in the form of more company shares. If
you own 100 shares in a dividend stock and the company pays a 5% stock dividend, you end up
with 105 shares
Small stock dividend. A stock dividend is considered to be small if the new shares being issued
are less than 20-25% of the total number of shares outstanding prior to the stock dividend.
On the declaration date of a small stock dividend, a journal entry is made to transfer the market
value of the shares being issued from retained earnings to the paid-in capital section of
stockholders' equity.
Large stock dividend. A stock dividend is considered to be large if the new shares being issued
are more than 20-25% of the total value of shares outstanding prior to the stock dividend.
On the declaration date of a large stock dividend, a journal entry is made to transfer the par
value of the shares being issued from retained earnings to the paid-in capital section of
stockholders' equity.
Solutions Manual to accompany Fundamental Accounting Principles, 17th Canadian Edition. © 2022
McGraw Hill Ltd. 13-3
Downloaded by damaris mutuli ()
Last revised April 2022
SOLUTIONS MANUAL
to accompany
Fundamental Accounting Principles
17th Canadian Edition
by Larson/Dieckmann/Harris
Prepared by:
John Harris, Seneca College
Technical checks by: Rhonda Heninger, SAIT
Solutions Manual to accompany Fundamental Accounting Principles, 17th Canadian Edition. © 2022
McGraw Hill Ltd. 13-1
Downloaded by damaris mutuli ()
, lOMoARcPSD|46240884
Last revised April 2022
Chapter 13 Corporate Reporting: Profit, Earnings per Share, and
Retained Earnings
Solutions Manual to accompany Fundamental Accounting Principles, 17th Canadian Edition. © 2022
McGraw Hill Ltd. 13-2
Downloaded by damaris mutuli ()
, lOMoARcPSD|46240884
Last revised April 2022
EXERCISES
Exercise 13-1 (20 minutes)
Total Assets Total Liabilities Total Equity
$5,000 cash dividend Decrease NC Decrease
7% stock dividend NC NC NC
40% stock dividend NC NC NC
7-for-1 stock split NC NC NC
A cash dividend is a regular cash payment by a company to shareholders. ... Stock dividends,
on the other hand, are literally a percentage payment in the form of more company shares. If
you own 100 shares in a dividend stock and the company pays a 5% stock dividend, you end up
with 105 shares
Small stock dividend. A stock dividend is considered to be small if the new shares being issued
are less than 20-25% of the total number of shares outstanding prior to the stock dividend.
On the declaration date of a small stock dividend, a journal entry is made to transfer the market
value of the shares being issued from retained earnings to the paid-in capital section of
stockholders' equity.
Large stock dividend. A stock dividend is considered to be large if the new shares being issued
are more than 20-25% of the total value of shares outstanding prior to the stock dividend.
On the declaration date of a large stock dividend, a journal entry is made to transfer the par
value of the shares being issued from retained earnings to the paid-in capital section of
stockholders' equity.
Solutions Manual to accompany Fundamental Accounting Principles, 17th Canadian Edition. © 2022
McGraw Hill Ltd. 13-3
Downloaded by damaris mutuli ()
