On January $1,2022$ the firm sells to you for $$30/$share$,1,000$ shares of no par common

stock $.$ There are now $10,000$ shares issued and

outstanding. You now own $10\%$ of the firm and are entitled to $10\%$ of cash dividends

paid.

On July $1,2022$ the firm declares a $2$ for $1$ stock split.

During $2022$ the firm earned net income of $$150,000$ and paid $$80,000$ in dividends.

$1.$ Prepare the stockholders equity section for December $31,$

$2022.$

$2.$ How many shares do you own on December $31,202\mathrm{2 }($assuming you have not sold or

purchased any shares other than the initial purchase of $1,000$ shares on January $1).$

$3.$ How much cash was paid to you in dividends for $2022?$

Answer rating: 100% (QA)

Answer 1 Stockholders Equity Section for December 31 2022 Common Stoc... View the full answer