The shareholders equity section of Mountvale Associates is as follows: The following selected transactions occurred during 2018:
Question:
The shareholders’ equity section of Mountvale Associates is as follows:
The following selected transactions occurred during 2018:
1. 1/1/18: A 20 percent stock dividend was issued. The fair market value of the stock at the time was $3 per share.
2. 8/25/18: Land was purchased in exchange for 6,000 shares of common stock. The fair market value of the stock was $3 per share.
3. 12/31/18: Common stock was issued for cash.
REQUIRED:
How many shares of common stock did Mountvale issue on December 31, 2018, and how much cash did the issuance generate? Show all calculations clearly.
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Total number of shares issued during 2018 Change in balance of common stock account Par value per sh...View the full answer
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