Accounting for Stock Dividends and Stock Splits
The Irvine Corporation reported the following data at year-end:
Common stock, par value $1 $100,000
Additional paid-in-capital 300,000
Retained earnings 1,400,000
Treasury shares (600,000)
Other comprehensive income 200,000
Total shareholders’ equity $1,400,000
The following transactions occurred during the year in the following sequence: Declared and distributed a 10% stock dividend on the outstanding common shares at a time when the common shares were selling for $15 per share. Declared a 3-for-2 forward stock split on the outstanding common shares. Declared and issued a 20% stock dividend on the outstanding common shares at a time when the shares were selling for $30 per share. Declared a 2-for-1 forward stock split on the outstanding common shares.
Calculate the par value per share and number of shares outstanding at year-end. Prepare the shareholders’ equity section of the balance sheet for the Irvine Corporation at year-end. Do not round until your final answers.
Par value per share at year end. Round to two decimal places. $Answer
Number of shares outstanding at year end. Round to nearest whole number. Answer Do not use rounded answers in your calculations.
Enter all answers in the nearest whole number. The Irvine Corporation Shareholders’ Equity Year End
Common stock, par value $Answer
Additional paid-in-capital Answer
Retained earnings Answer
Treasury stock Answer
Other comprehensive income Answer
Total shareholders’ equity $ Answer