Stockholders' Equity: Transactions and Statement The stockholders' equity section of Night Corporation's balance sheet at January 1 follows: 240,000 Common stock, $4 par value, 300,000 shares authorized, 60,000 shares issued, 6,000 shares in treasury Additional paid-in capital In excess of par value From treasury stock Retained earnings Less: Treasury stock (6,000 shares) at cost Total Stockholders’ Equity 360,000 22,500 382,500 261,000 883,500 103,500 780,000 The following transactions affecting stockholders’ equity occurred during the year: Jan. 8 Issued 15,000 shares of previously unissued common stock for $16 cash per share. Mar. 12 Sold all of the treasury shares for $21 cash per share. June 30 Declared a five percent stock dividend on all outstanding shares of common stock. The market value of the stock was $19 per share. July 10 Issued the stock dividend declared on June 30. Oct. 7 Acquired 2,500 shares of common stock as treasury stock at $20 cash per share. Dec. 18 Declared a cash dividend of $1.00 per outstanding common share, payable on January 9 to stockholders of record on December 31.
Stockholders' Equity: Transactions and Statement The stockholders' equity section of Night Corporation's balance sheet at January 1 follows: 240,000 Common stock, $4 par value, 300,000 shares authorized, 60,000 shares issued, 6,000 shares in treasury Additional paid-in capital In excess of par value From treasury stock Retained earnings Less: Treasury stock (6,000 shares) at cost Total Stockholders’ Equity 360,000 22,500 382,500 261,000 883,500 103,500 780,000 The following transactions affecting stockholders’ equity occurred during the year: Jan. 8 Issued 15,000 shares of previously unissued common stock for $16 cash per share. Mar. 12 Sold all of the treasury shares for $21 cash per share. June 30 Declared a five percent stock dividend on all outstanding shares of common stock. The market value of the stock was $19 per share. July 10 Issued the stock dividend declared on June 30. Oct. 7 Acquired 2,500 shares of common stock as treasury stock at $20 cash per share. Dec. 18 Declared a cash dividend of $1.00 per outstanding common share, payable on January 9 to stockholders of record on December 31.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 57E: Outstanding Stock Lars Corporation shows the following information in the stockholders equity...
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I am stuck on June 30th. Declared a five percent stock divided on all outstanding shares of common sotck. The market value of the stock was $19 per share.
I included screenshots of the whole thing.
To figure this out I thought we had to take all stocks issued which was 60,000 and then another 15,000 equalling 75,000 then multiply 75,000 by $19 then multiply by .05.
Im not sure what I am doing wrong. Can you point me in the right direction please.
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