On January 1, 2010, Pattini Corporation had the following stockholders equity accounts. Common Stock (no par value,

Question:

On January 1, 2010, Pattini Corporation had the following stockholders’ equity accounts.

Common Stock (no par value, 90,000 shares issued and outstanding) .. $1,400,000

Retained Earnings ......................... 500,000

During the year, the following transactions occurred.

Feb. 1 Declared a $1 cash dividend per share to stockholders of record on February 15, payable March 1.

Mar. 1 Paid the dividend declared in February.

Apr. 1 Announced a 4-for-1 stock split. Prior to the split, the market price per share was $36.

July 1 Declared a 5% stock dividend to stockholders of record on July 15, distributable July 31.

On July 1, the market price of the stock was $13 per share.

31 Issued the shares for the stock dividend.

Dec. 1 Declared a $0.50 per share dividend to stockholders of record on December 15, payable January 5, 2011.

31 Determined that net income for the year was $350,000.

Instructions

Prepare the stockholders’ equity section of the balance sheet at:

(a) March 31,

(b) June 30,

(c) September 30, and

(d) December 31, 2010.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Dividend
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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Accounting Principles

ISBN: 978-0470533475

9th Edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

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