Question
In: Accounting
Common stock—$25 par value, 150,000 shares authorized, 71,000 shares issued and outstanding $ 1,775,000 Paid-in capital...
|
Common stock—$25 par value, 150,000 shares authorized, 71,000 shares issued and outstanding |
$ | 1,775,000 | |
| Paid-in capital in excess of par value, common stock | 525,000 | ||
| Retained earnings | 675,000 | ||
| Total stockholders’ equity | $ | 2,975,000 | |
On February 5, the directors declare a 18% stock dividend
distributable on February 28 to the February 15 stockholders of
record. The stock’s market value is $41 per share on February 5
before the stock dividend. The stock’s market value is $35 per
share on February 28.
2.
One stockholder owned 850 shares on February 5 before the dividend.
Compute the book value per share and total book value of this
stockholder’s shares immediately before and after the stock
dividend of February 5. (Round your "Book value per share"
answers to 3 decimal places.)
|
Solutions
Expert Solution
Requirement-2, Book value per share and total book value of this stockholder’s shares immediately before and after the stock dividend of February 5
|
Before |
After |
|
|
Book value per share |
$41.901 per share |
$35.510 per share |
|
Total book value of shares |
$35,616 |
$35,616 |
Book value per share Before
Book value per share Before = Total Stockholders Equity / number of shares outstanding
= $2,975,000 / 71,000 shares
= $41.901 per share
Book value per share After
Book value per share Before = Total Stockholders Equity / number of shares outstanding
= $2,975,000 / [71,000 shares x 118%]
= $2,975,000 / 83,780 shares
= $35.510 per share
Total book value of shares Before
Total book value of shares Before = Number of shares owned x Book value per share Before
= 850 shares x $41.901 per share
= $35,616
Total book value of shares After
Total book value of shares after = Number of shares owned x Book value per share after
= [850 shares x 118%] x $35.510 per share
= $35,616
ekkarill92 answered 6 months agoRelated Solutions
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Common stock—$10 par
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Paid-in capital in
excess of par value, common stock
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Retained
earnings
460,000
Total stockholders'
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1
Purchased 4,500 shares of its own
stock at $20 cash per share.
Jan.
5
Directors declared a $4 per share
cash dividend payable on February 28 to the February 5 stockholders
of record.
Feb.
28
Paid the...
Common stock—$20 par value, 100,000 shares authorized, 55,000 shares issued and outstanding $ 1,100,000 Paid-in capital...
Common stock—$20 par value, 100,000 shares authorized,
55,000 shares issued and outstanding
$
1,100,000
Paid-in capital in excess of par value, common stock
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Retained earnings
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Total stockholders' equity
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1,620,000
In year 2017, the following transactions affected its stockholders’
equity accounts.
Jan.
1
Purchased 5,500 shares of its own stock at $25 cash per
share.
Jan.
5
Directors declared a $4 per share cash dividend payable on
February 28 to the February 5 stockholders of record.
Feb.
28...
Common stock—$20 par value, 100,000 shares authorized, 55,000 shares issued and outstanding $ 1,100,000 Paid-in capital...
Common stock—$20 par value, 100,000 shares authorized, 55,000
shares issued and outstanding $ 1,100,000 Paid-in capital in excess
of par value, common stock 70,000 Retained earnings 400,000 Total
stockholders' equity $ 1,570,000 In year 2017, the following
transactions affected its stockholders’ equity accounts. Jan. 1
Purchased 5,000 shares of its own stock at $20 cash per share. Jan.
5 Directors declared a $4 per share cash dividend payable on
February 28 to the February 5 stockholders of record. Feb. 28...
Stockholders' Equity Paid-In Capital: Common Stock—$5 Par Value; 1,300 shares authorized, 310 shares issued and outstanding...
Stockholders' Equity
Paid-In Capital:
Common Stock—$5 Par Value; 1,300 shares
authorized, 310 shares issued and outstanding $1,550
Paid-In Capital in Excess of Par—Common 4,650
Total Paid-In Capital 6,200
Retained Earnings 59,000
Total Stockholders' Equity $65,200
DATA TABLE ABOVE
Western Amusements Corporation had the following?
stockholders' equity on November 30?:
On December? 30, Western purchased 100 shares of treasury stock
at $ 14 per share.
Requirement 1. Journalize the purchase of the
treasury stock.? (Record debits? first, then credits. Select the...
Stockholders' Equity Paid-In Capital: Preferred Stock—4%, $12 Par Value; 150,000 shares authorized, 30,000 shares issued and...
Stockholders' Equity
Paid-In Capital:
Preferred Stock—4%, $12 Par Value; 150,000
shares
authorized, 30,000 shares issued and outstanding
$360,000
Common
Stock—$3 Par Value; 575,000 shares
authorized, 330,000 shares issued and
outstanding
990,000
Paid-In
Capital in Excess of Par—Common
990,000
Total
Paid-In Capital
2,340,000
Retained Earnings
140,000
Total Stockholders'
Equity
$2,480,000
Requirement 1. Assuming the preferred stock is
cumulative, compute the amount of dividends to preferred
stockholders and to common stockholders for
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and
2019
if total dividends are
$13,400
in
2018...
Preferred Stock- 5% $11 Par Value 5,500 shares authorized 4,000 shares issued and outstanding Common Stock...
Preferred Stock- 5% $11 Par Value 5,500 shares authorized 4,000
shares issued and outstanding
Common Stock - $.20 Par Value 2,000,000 shares authorized,
1,650,000 shares issued and outstanding
Requirement 1.
Sapphire declares cash dividends of $28,000 for 2018.
How much of the dividends goes to preferred? stockholders? How
much goes to common? stockholders? ?(Complete all input boxes.
Enter? "0" for any zero? amounts.)
Sapphire dividend would be divided between preferred and common
stockholders in this? manner:
Total Dividend
Dividend to...
create journal entries: Common stock—$10 par value, 100,000 shares authorized, 55,000 shares issued and outstanding $...
create journal entries: Common stock—$10 par value, 100,000
shares authorized, 55,000 shares issued and outstanding $ 550,000
Paid-in capital in excess of par value, common stock 80,000
Retained earnings 460,000 Total stockholders’ equity $ 1,090,000 In
year 2016, the following transactions affected its stockholders’
equity accounts. Jan. 1 Purchased 5,000 shares of its own stock at
$20 cash per share. Jan. 5 Directors declared a $4 per share cash
dividend payable on Feb. 28 to the Feb. 5 stockholders of...
Preferred 1% Stock, $50 par (100,000 shares authorized, 79,600 shares issued) $3,980,000 Paid-In Capital in Excess...
Preferred 1% Stock, $50 par
(100,000 shares authorized, 79,600 shares issued)
$3,980,000
Paid-In Capital in Excess of
Par—Preferred Stock
159,200
Common Stock, $3 par (5,000,000
shares authorized, 1,870,000 shares issued)
5,610,000
Paid-In Capital in Excess of
Par—Common Stock
1,215,500
Retained Earnings
31,497,000
During the year, the corporation completed a number of
transactions affecting the stockholders’ equity. They are
summarized as follows:
Jan.
5
Issued 532,900 shares of common
stock at $9, receiving cash.
Feb.
10
Issued 11,000 shares of preferred...
Prepare statement of retained earnings: Common stock—$10 par value, 100,000 shares authorized, 55,000 shares issued and...
Prepare statement of retained earnings:
Common stock—$10 par value, 100,000 shares authorized, 55,000
shares issued and outstanding $ 550,000 Paid-in capital in excess
of par value, common stock 80,000 Retained earnings 460,000 Total
stockholders’ equity $ 1,090,000 In year 2016, the following
transactions affected its stockholders’ equity accounts. Jan. 1
Purchased 5,000 shares of its own stock at $20 cash per share. Jan.
5 Directors declared a $4 per share cash dividend payable on Feb.
28 to the Feb. 5...
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