Question: Contributed Capital Common Stock $10 par value 5,000 shares authorized 1,100 shares issued... $11,000 Paid-in Capital in Excess of Par Value ......................................................................... 29,000 Total Contributed

Contributed Capital

Common Stock $10 par value 5,000 shares authorized 1,100 shares issued... $11,000

Paid-in Capital in Excess of Par Value ......................................................................... 29,000

Total Contributed Capital ...................................................................................... $40,000

Treasury Stock at cost 100 shares ..................................................................................(5,000)

Retained Earnings ............................................................ ................................................ 20,000

Total Stockholders' Equity ..............................................................................................$55,000

Stanbaker Corporation balance sheet on January 1, 2019 contained the shareholders' equity section shown above. The following equity transactions occurred sequentially during 2019 (i.e., transaction i. preceded transaction ii. and transaction ii. preceded transaction iii. and so on):

i. Sold an additional 500 shares of authorized common stock at $50 per share to a hedge fund.

ii. Purchased 100 treasury shares at $55 per share.

iii. Declared a 4-for-1 stock split, increased authorized shares to 20,000, and reduced par value of the Common Stock to $2.5 per share.

iv. Declared a 10% stock dividend. The price of BBC stock on this day was $15 a share.

v. Declared and paid a cash dividend of $ 1.00 per share.

vi. Sold 200 of the treasury shares acquired in transaction ii. at $18.75 per share.

vii. Reported net income for the year ended December 31, 2019, of $4,000.

Required: For each of the above transactions, determine the dollar amount and effect (+ for an increase and - for a decrease) on Common Stock at Par, Paid in Excess of Par, Retained Earnings, Treasury Stock, Total Stockholders' Equity, Shares Issued, and Shares Outstanding.

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