Preparation of stockholders' equity section (L.O. 1, 2) MBM Corporation had the following equity accounts at...

 

Transcribed Image Text:

Preparation of stockholders' equity section (L.O. 1, 2) MBM Corporation had the following equity accounts at the beginning of the year: Common stock, $10 par Paid-in capital in excess of par value Retained earnings Total stockholders' equity $200,000 100,000 500,000 $800,000 The following events took place during the current year: Feb. 24 Declared a $2 dividend per share. Announced a 2-for-1 stock split. May 10 Sept. 18 Dec. 30 Declared and issued a 10% stock dividend; market value at the time of declaration was $12 per share. Reacquired 500 shares of common (treasury) stock at $18 per share. Assuming net income of $92,000, prepare an updated stockholders' equity section for MBM at the end of the year, after the accounting records have been closed. Preparation of stockholders' equity section (L.O. 1, 2) MBM Corporation had the following equity accounts at the beginning of the year: Common stock, $10 par Paid-in capital in excess of par value Retained earnings Total stockholders' equity $200,000 100,000 500,000 $800,000 The following events took place during the current year: Feb. 24 Declared a $2 dividend per share. Announced a 2-for-1 stock split. May 10 Sept. 18 Dec. 30 Declared and issued a 10% stock dividend; market value at the time of declaration was $12 per share. Reacquired 500 shares of common (treasury) stock at $18 per share. Assuming net income of $92,000, prepare an updated stockholders' equity section for MBM at the end of the year, after the accounting records have been closed.

Answer rating: 100% (QA)

MBM Corporation Equity section of balance sheet December 31 2... View the full answer