You should review the solution to Case 8.34, provided by your instructor, before attempting to complete this case.) The transactions affecting the stockholders’ equity accounts of DeZurik Corp. for the year ended June 30, 2020, are summarized here:

1. 160,000 shares of common stock were issued at $21.25 per share.

2. 40,000 shares of treasury (common) stock were sold for $21 per share.

3. Net income for the year was $1,480 (in thousands).

4. The fiscal 2020 preferred dividends were paid in full. Assume that all 64,000 shares were outstanding throughout the year ended June 30, 2020.

5. A cash dividend of $0.30 per share was declared and paid to common stockholders. Assume that transactions 1 and 2 occurred before the dividend was declared.

6. The preferred stock was split 2 for 1 on June 30, 2020. 

Required:

a. Calculate the dollar amounts that DeZurik Corp. would report for each stockholders’ equity caption on its June 30, 2020, balance sheet after recording the effects of transactions 1–6. Note that total stockholders’ equity at June 30, 2020 of $52,922 (in thousands), is provided as a check figure. (Hint: To determine the Retained Earnings balance, begin with the June 30, 2019, balance of $14,020 (in thousands) as determined in Case 8.34, and then make adjustments for the effects of transactions 3–5.)

b. Indicate how the stockholders’ equity caption details for DeZurik Corp. would change for the June 30, 2020, balance sheet, as compared to the disclosures shown in Case 8.34 for the 2019 balance sheet.

c. What was the average issue price of common stock shown on the June 30, 2020, balance sheet?