Week 2 Exam - Problem#1 Stockholders Equity(before dividend...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Problem #1 Stockholders’ Equity (before dividend) Common Stock- $5 par value, 1,000,000 shares authorized. 500,000 shares issued and outstanding…………………………………………. . 2,500,000 Paid in capital in excess of par value, common stock…………………………. 1,000,000 Retained earnings………………………………………………………………………………. 3,000,000 Total stockholders equity…………………………………………………………………. . 6,500,000 Date of Declaration Feb 15 Retained earnings…………………………………………………… 150,000 (5% of 500,000=25,000 X $6 per share) Common Stock Dividend Distributable………. 125,000 (5% of 500,000=25,000 X $5 per share) Paid in capital in excess of par value, Common Stock…………………………………………… 25,000 Declared a 25,000 share (5%) stock dividend Stockholders’ Equity (before dividend)
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Ask a homework question - tutors are online