Written Assignment #3

Written Assignment #3 - Dustin Taylor FIN-301 June 2011...

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Dustin Taylor FIN-301 June 2011 Term Written Assignment #3 Chapter 10 Problem #3 a. $90 / 2 = $45 b. before split - $6 / $9.50 = 63.16% after split - $3 / $4.75 = 63.16% Problem #4 a. Cash - $28,000,000 – ($1 x 2,000,000 shares) = $26,000,000 Common stock - $100,000,000 Additional paid-in capital - $10,000,000 Retained earnings - $62,000,000 – ($1 x 2,000,000 shares) = $60,000,000 b. Cash - $28,000,000 Common stock - $50 par x 2,100,000 shares = $105,000,000 Additional paid-in capital - $10,000,000 + $5,000,000 = $15,000,000 Retained earnings - $62,000,000 – $10,000,000 = $52,000,000 c. Cash - $28,000,000 Common stock - $100 par x 1,000,000 shares = $100,000,000 Additional paid-in capital - $10,000,000 Retained earnings - $62,000,000 Problem #5 Stock dividend: Common stock – Increased $20,000 ($1 par x 20,000 shares) Additional paid-in capital - Increased $60,000 Retained earnings – Decreased $80,000 ($4 x 20,000 shares) Cash dividend: Common stock – Remains the same Additional paid-in capital –
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Written Assignment #3 - Dustin Taylor FIN-301 June 2011...

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