On January 1, Year 8, Electric Pump Company has total stockholders' equity of $4,400,000 and 50,000 outstanding shares of a single class of capital stock. During Year 8, the corporation completes the foillowing transactions affecting its stockhold- ers' equity accounts: Jan. 10 The board of directors delcares a cash dividend of $4.20 per share, payable 17B-4 on February 15. Apr. 30 The capital stock is split, two shares for one. June 11 The corporation acquires 2,000 shares of its own capital steck at a cost of $56.60 per share. July 21 All 2,000 shares of the treasury stock are reissued at a price of $61.60 per share. Nov. 10 A 5% stock dividend is declared and distributed (market value $60 per share). Dec. 31 Net income of $378,000 (equal to $3.60 per share) is reported for Year 8. Instructions Compute the amount of total stockholders' equity, the number of shares of capital stock outstanding, and the book value per share following each successive transaction. Organize your solution as a three-column schedule with sepa- rate column headings for (1) Total Stockholders' Equity, (2) Number of Shares

On January 1, Year 8, Electric Pump Company has total stockholders' equity of $4,400,000 and 50,000 outstanding shares of a single class of capital stock. During Year 8, the corporation completes the foillowing transactions affecting its stockhold- ers' equity accounts: Jan. 10 The board of directors delcares a cash dividend of $4.20 per share, payable 17B-4 on February 15. Apr. 30 The capital stock is split, two shares for one. June 11 The corporation acquires 2,000 shares of its own capital steck at a cost of $56.60 per share. July 21 All 2,000 shares of the treasury stock are reissued at a price of $61.60 per share. Nov. 10 A 5% stock dividend is declared and distributed (market value $60 per share). Dec. 31 Net income of $378,000 (equal to $3.60 per share) is reported for Year 8. Instructions Compute the amount of total stockholders' equity, the number of shares of capital stock outstanding, and the book value per share following each successive transaction. Organize your solution as a three-column schedule with sepa- rate column headings for (1) Total Stockholders' Equity, (2) Number of Shares

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter13: Corporations: Organization, Stock Transactions, And Dividends

Section: Chapter Questions

Problem 3PA: The following selected accounts appear in the ledger of EJ Construction Inc. at the beginning of the...

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James Incorporated is authorized to issue 5,000,000 shares of $1 par value common stock. In its second year of business, the company has the following transactions: Journalize the transactions.
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Ammon Company is authorized to issue 500,000 shares of $5 par value preferred stock. In its first year, the company has the following transaction: Mar. 1, issued 40,000 shares of preferred stock at $20.50 per share. Journalize the transaction.
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