Account classifications include assets, liabilities, stockholders’ equity, dividends, revenues, and expenses. Required: For each transaction, select whether the related account would be classified as an asset, liability, or stockholders’ equity to be reported in the balance sheet; a revenue or expense to be reported in the income statement; or a dividend to be reported in the statement of stockholders’ equity.

Account classifications include assets, liabilities, stockholders’ equity, dividends, revenues, and expenses.

Required:

For each transaction, select whether the related account would be classified as an asset, liability, or stockholders’ equity to be reported in the balance sheet; a revenue or expense to be reported in the income statement; or a dividend to be reported in the statement of stockholders’ equity.

The stock of Payout Corp. will go ex-dividend tomorrow. The dividend will be $0.90 per share,

The stock of Payout Corp. will go ex-dividend tomorrow. The dividend will be $0.90 per share, and there are 21,000 shares of stock outstanding. The market-value balance sheet for Payout is shown on the following table. Ignore taxes.

Assets			Liabilities and Equity
Cash	$	230,000	Equity	$1,260,000
Fixed assets		1,030,000

a.	What price is Payout stock selling for today?

Price

$

b.	What price will it sell for tomorrow? (Round your answer to 2 decimal places.)

Price

$

Explanation:

a.

P = $1,260,000/21,000 = $60

b.

The price tomorrow will be $0.90 per share lower, or $59.10.