Chapter 14 week 1 E14-16

Chapter 14 week 1 E14-16 - doubled 120,000 shares c...

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E14-16 Identify the effects of the following transactions on total stockholders’ equity. Each transaction is independent. a. A 10% stock dividend. Before the dividend, 500,000 shares of $1 par common stock were outstanding; market value was $6 at the time of the dividend. ( p. 694 ) 10% of 500,000 is 50,000 common stock $1 and market is $6* 50,000= 300,000 minus 50,000 is 250,000 is the excess b. A 2-for-1 stock split. Prior to the split, 60,000 shares of $4 par common were outstanding. ( p. 694 ) 60,000 *4 it has went down by 2 dollars and it can be
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Unformatted text preview: doubled 120,000 shares c. Purchase of 1,000 shares of treasury stock (par value $0.50) at $5 per share. ( pp. 694 – 695 , 697–698) 1,000* .50=5000 and also the voting stock has been reduced and also cash is reduced d. Sale of 600 shares of $1 par treasury stock for $5 per share. Cost of the treasury stock was $2 per share. (pp. 696, 697–698) 600*$1= 600 * 5= 3000 teasury was up to 2.00 is 1200 capital treasury and the increase was done by 3.000 and also have capital 800...
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This note was uploaded on 06/13/2011 for the course ACC 206 taught by Professor Any during the Spring '11 term at Ashford University.

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