Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

problem: Klein Corporation's stockholders' equity section at December 31, 2001 appears below:  Stockholders' equity Paid-in capital

    Common stock, $10 par, 50,000 outstanding    $500,000

    Paid-in capital in excess of par             150,000

                                                                ————————

    Total paid-in capital                                $650,000

    Retained earnings                                   150,000

                                                                ————————

    Total stockholders' equity                     $800,000                                                         

On June 30, 2002, the board of directors of Klein Corporation announced a 15 percent stock dividend, payable on July 31, 2002, to stockholders of record on July 15, 2002. The fair market value of Klein Corporation's stock on June 30, 2002, was $12. 

On December 1, 2002, the board of directors declared a 2 for 1 stock split effective December 15, 2002. Klein Corporation's stock was selling for $20 on December 1, 2002, before the stock split was announced. Par value of the stock was adjusted. Net income for 2002 was $240,000 & there were no cash dividends declared.

    INSTRUCTIONS

    [A] Make journal entries on the appropriate dates to record the stock dividend and the stock split.

    [B] Find the amount that would appear in the stockholders' equity section for Klein Corporation at December 31, 2002, for the following items: 

(a) Common stock      

(b) Number of shares outstanding          

(c) Par value per share                  

(d) Paid-in capital in excess of par     

(e) Retained earnings                    

(f) Total stockholders' equity        

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M920432

Have any Question? 


Related Questions in Basic Finance

1 an article in a financial publication observes the higher

1. An article in a financial publication observes: "The higher the expected volatility in stock prices, the higher the prices of put and call options will be." Briefly explain the reasoning behind this observation. 2. An ...

Hypochondriacs are obsessed with their health talk a great

Hypochondriacs are obsessed with their health, talk a great deal about their real and imagined health problems, and visit their physician frequently. Imagine that you developed an 8-item self-report measure of hypochondr ...

Stock pricing stock valuation bond pricesbullgo to

STOCK PRICING / STOCK VALUATION / BOND PRICES • Go to www.cnbc.com and explore the video tab by using several different key terms such as stock pricing, stock valuation, and bond prices. • Watch at least two videos you f ...

1 financing what factors are considered in managing

1. Financing. What factors are considered in managing financing? 2. Investing. What is the primary objective of investing? What else must be considered? What potential investment vehicles are available? 3. Protecting You ...

Given interest rates flat 2bull compute risky pv01 of

Given interest rates flat 2%. • Compute risky PV01 of initial the par CDS spread of 5% and 5 years time horizon. • Assume current spread is 7%, Use the computed risky PV01 to verify that this is approximately riskyPV01*( ...

Lowell made a taxable gift of 2 million to his grandson and

Lowell made a taxable gift of $2 million to his grandson and allocated his remaining exemption of $500,000 to the gift. What is Lowell's GST tax liability in 2014?

A project has an initial cash outflow of 39800 and produces

A project has an initial cash outflow of $39,800 and produces cash inflows of $18,304, $19,516, and $14,280 for years 1 through 3, respectively. What is the NPV at a discount rate of 11 percent?

A tenant has a gross lease with an lsquolsquoexpense stopof

A tenant has a gross lease with an ‘‘expense stop''of $2.75/SF. If the building has 200,000 square feet of leasable space, reimbursable operating expenses of $700,000, and the tenant rents 25,000 SF, then how much does t ...

1 define the following termsa optionb callc putd contingent

1. Define the following terms: a. Option b. Call c. Put d. Contingent claim 2. What are the similarities and differences between options and warrants? 3. What variables are important in determining call option prices? 4. ...

1nbspcalculate the cost of new common equity financing of

1. Calculate the cost of new common equity financing of stock R using Gordon Model Round the answers to two decimal places in percentage form (Write the percentage sign in the "units" box) Last Year Dividend Growth Rate ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen