The stockholders' equity section of Meyer Corporation's balance sheet as of December 31, 2018 is as follows: Common Stock, $5 par value; 2,000,000 shares authorized and 400,000 shares issued and outstanding $ 2,000,000 Paid-in Capital in Excess of Par—Common Stock 850,000 Retained Earnings 3,000,000 $5,850,000 Required: Below and on the following page, record the following events that occurred during 2019. If no entry is required, write “No Entry.” Jan 15 30,000 shares common stock were issued for $8 per share. Jan 16 Declared a cash dividend of $0.20 per share, payable February 14 to stockholders of record on February 5. Mar 1 Reacquired 15,000 of its own shares at $10 per share. April 1 Reissued 5,000 of the shares acquired March 1 at $9 per share. May 1 Reissued the remaining 10,000 shares acquired March 1 at $14 per share. June 1 A 30% stock dividend was declared, distributable June 30 to stockholders of record on June 15. Market value per share is currently $21. July 1 A two-for-one split was carried out. Fair value on March 31 was $23 per share. Sept 1 A 10% stock dividend was declared, distributable September 30 to stockholders of record on September 15. Market value per share is currently $12. Oct 1 A cash dividend of $0.10 per share was declared, payable October 31 to stockholders of record on October 15.
The
Common Stock, $5 par value; 2,000,000 shares authorized and 400,000 shares issued
and outstanding $ 2,000,000
Paid-in Capital in Excess of Par—Common Stock 850,000
$5,850,000
Required: Below and on the following page, record the following events that occurred during 2019. If no
entry is required, write “No Entry.”
Jan 15 30,000 shares common stock were issued for $8 per share.
Jan 16 Declared a cash dividend of $0.20 per share, payable February 14 to stockholders of record on
February 5.
Mar 1 Reacquired 15,000 of its own shares at $10 per share.
April 1 Reissued 5,000 of the shares acquired March 1 at $9 per share.
May 1 Reissued the remaining 10,000 shares acquired March 1 at $14 per share.
June 1 A 30% stock dividend was declared, distributable June 30 to stockholders of record on June 15.
Market value per share is currently $21.
July 1 A two-for-one split was carried out. Fair value on March 31 was $23 per share.
Sept 1 A 10% stock dividend was declared, distributable September 30 to stockholders of record on
September 15. Market value per share is currently $12.
Oct 1 A cash dividend of $0.10 per share was declared, payable October 31 to stockholders of record on
October 15.
Shareholders' equity section of a company represents the amount related to its shareholders. It includes par value of share issued, additional paid in capital and retained earnings.
If there is any treasury stocks purchased by the company, it is presented as a deduction in the stockholders' equity section. Treasury stocks can be reissued by the firm at par, at premium or at discount.
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