Accounting for Share Transactions:
The shareholder's equity section of the consolidated balance sheet of CompX international appeared as follows at the beginning of the year:
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Shareholders' Equity
|
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Class A common stock, $0.01 par value; 20,000,000 shares authorized;
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6,100,000 shares issued
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$61,000
|
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Additional paid-in-capital
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118,127,000
|
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Retained earnings
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14,270,000
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Currency translation adjustment
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(2,412,000)
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Total equity
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$130,046,000
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The following events occurred sequentially during the year:
1. A 2-for-1 forward stock split was executed.
2. A ten percent stock dividend was distributed when the CompX share price was $20 per share.
3. Treasury stock valued at $3,000,000 was repurchased when the CompX share price was $15 per share.
Required:
1. How many Class A common shares are outstanding following the above events?
2. What is the par value per share are outstanding following the above events?
3. Prepare a spreadsheet to illustrate the financial effects associated with the above share transactions.
4. Calculate the total value of shareholders equity following the above events.