Universal Cable Corporation has 1,000,000 shares of $1 par value capital stock outstanding on January 1. The following equity transactions occurred during the current year:   April 30   June 1 July 1 August 1 September 1 December 15 Distributed additional shares of capital stock in a 2-for-1 stock split. Market price of the stock was $35 per share. Declared a cash dividend of 60 cents per share Paid the 60-cent cash dividend to stockholders. Declared a 5% stock dividend. Market price of stock was $19 per share. Issued shares resulting from the 5% stock dividend declared on August 1. Declared a 50% stock dividend. Market price of stock was $23 per share.   Prepare journal entries to record the above transactions. Compute the number of shares of capital stock outstanding at year-end. What is the par value per share of Universal Cable stock at the end of the year? Determine the effect of each of the following on total stockholders’ equity: stock split, declaration and payment of a cash dividend, declaration and distribution of a stock dividend. (Your answer should be increase, decrease or no effect.)

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Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.