The stockholders' equity section of Beta Corporation's balance sheet as of December 31, 2025 is as follows: Stockholders' Equity Common stock, $5 par value; authorized, 2,000,000 shares; issued, 600,000 shares Paid-in capital in excess of par Retained earnings The following events occurred during 2026: 1. Jan. 5 2. Jan. 16 3. Feb. 20 4. March 1 5. April 1 6. July 1 7. Aug. 1 $3,000,000 850,000 4,500,000 $8,350,000 45,000 shares of common stock were sold for $8 per share. Declared a cash dividend of 20 cents per share, payable February 15 to stockholders of rec on February 5. 60,000 shares of authorized and unissued common stock were sold for $12 per share. A 30% stock dividend was declared and issued. Fair value per share is currently $15. A two-for-one split was carried out. The par value of the stock was to be reduced to $2.50 share. Fair value on March 31 was $18 per share. A 15% stock dividend was declared and issued. Fair value is currently $10 per share. A cash dividend of 20 cents per share was declared, payable September 1 to stockholder record on August 21. REQUIRED: 1. Record the journal entries on the following page. 2. Answer the following questions: a. What is the number of common shares outstanding on December 31, 2026? b. What is the balance in Retained Earnings on December 31, 2026?
The stockholders' equity section of Beta Corporation's balance sheet as of December 31, 2025 is as follows: Stockholders' Equity Common stock, $5 par value; authorized, 2,000,000 shares; issued, 600,000 shares Paid-in capital in excess of par Retained earnings The following events occurred during 2026: 1. Jan. 5 2. Jan. 16 3. Feb. 20 4. March 1 5. April 1 6. July 1 7. Aug. 1 $3,000,000 850,000 4,500,000 $8,350,000 45,000 shares of common stock were sold for $8 per share. Declared a cash dividend of 20 cents per share, payable February 15 to stockholders of rec on February 5. 60,000 shares of authorized and unissued common stock were sold for $12 per share. A 30% stock dividend was declared and issued. Fair value per share is currently $15. A two-for-one split was carried out. The par value of the stock was to be reduced to $2.50 share. Fair value on March 31 was $18 per share. A 15% stock dividend was declared and issued. Fair value is currently $10 per share. A cash dividend of 20 cents per share was declared, payable September 1 to stockholder record on August 21. REQUIRED: 1. Record the journal entries on the following page. 2. Answer the following questions: a. What is the number of common shares outstanding on December 31, 2026? b. What is the balance in Retained Earnings on December 31, 2026?
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 84PSB: Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following...
Related questions
Question
100%
Transcribed Image Text:The stockholders' equity section of Beta Corporation's balance sheet as of December 31, 2025 is as follows:
Stockholders' Equity
Common stock, $5 par value; authorized, 2,000,000 shares;
issued, 600,000 shares
Paid-in capital in excess of par
Retained earnings
The following events occurred during 2026:
1. Jan. 5
2. Jan. 16
3. Feb. 20
4. March 1
5. April 1
6. July 1
7. Aug. 1
$3,000,000
850,000
4,500,000
$8,350,000
45,000 shares of common stock were sold for $8 per share.
Declared a cash dividend of 20 cents per share, payable February 15 to stockholders of rec
on February 5.
60,000 shares of authorized and unissued common stock were sold for $12 per share.
A 30% stock dividend was declared and issued. Fair value per share is currently $15.
A two-for-one split was carried out. The par value of the stock was to be reduced to $2.50
share. Fair value on March 31 was $18 per share.
A 15% stock dividend was declared and issued. Fair value is currently $10 per share.
A cash dividend of 20 cents per share was declared, payable September 1 to stockholder
record on August 21.
REQUIRED:
1. Record the journal entries on the following page.
2. Answer the following questions:
a. What is the number of common shares outstanding on December 31, 2026?
b. What is the balance in Retained Earnings on December 31, 2026?
Expert Solution
Step 1
Note :
Stock dividend is nothing but capitalisation of profit, it is a payment to shareholders that is made in additional shares instead of cash, and adverse effect of diluting EPS.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Follow-up Questions
Read through expert solutions to related follow-up questions below.
Follow-up Question
For March 1, how did you get the 211,500 that you multiply by 5
Solution
by Bartleby ExpertRecommended textbooks for you
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
College Accounting, Chapters 1-27 (New in Account…
Accounting
ISBN:
9781305666160
Author:
James A. Heintz, Robert W. Parry
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Corporate Financial Accounting
Accounting
ISBN:
9781305653535
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning