Whitacre Companys Stockholders Equity section of the balance sheet on December 31, 2013, was as follows: Common
Question:
Whitacre Company’s Stockholders’ Equity section of the balance sheet on December 31, 2013, was as follows:
Common stock, $10 par value, 60,000 shares...................................................$ 600,000
issued and outstanding
Additional paid-in capital........................................................................................480,000
Retained earnings.................................................................................................1,240,000
Total stockholders’ equity..................................................................................$2,320,000
On May 1, 2014, Whitacre declared and issued a 15% stock dividend, when the stock was selling for $20 per share. Then on November 1, it declared and issued a 2-for-1 stock split.
Required
1. How many shares of stock are outstanding at year-end?
2. What is the par value per share of these shares?
3. Develop the Stockholders’ Equity category of Whitacre’s balance sheet as of December 31,2014.
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... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...
Step by Step Answer:
Financial Accounting The Impact on Decision Makers
ISBN: 978-1285182964
9th edition
Authors: Gary A. Porter, Curtis L. Norton