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.
[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