Sharper Corporation Stockholders Equity Section Excel Sheet (1) On June 30, Sharper Corporation’s stockholders equity section of its dividend or split. Sharper declares and immediately distributes a 50% dividend.
Common stock-$10 par value, 1220,000 shares authorized, 50,000 shares issued and outstanding-$500,000
Paid in capital in excess of par value, common stock – $200,000
Retained earnings – $660,000
Total stockholders’ equity $1,360,000
Prepare the updated stockholders’ equity section after the distribution is made.
Compute the number of shares outstanding after the distribution is made.
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(2) Th stockholders equity of TVX Company at the beginning of the day on Feb 5 follows:
Common stock – $10 par value, 150,000 shares authorized 60,000 shares issued and outstanding $600,000
Paid in capital in excess o pa value, common stock $425,000
Retained earnings $550,000
Total stockholders equity $1,575,000
On February 5, the directors declare a 20% stock dividend distributable on February 28 to the Feb 15 stockholder record. The stock’s market value is $40 per share on February 5 before the stock dividend.
Prepare the stockholders equity section after the stock dividend is distributed.
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(3) On October 10, the stockholders equity of Sherman Systems appears as follows:
Common stock – $10 par value, 72,000 shares authorized, issued, and outstanding 720,000
Paid in capital in excess of par value, common stock 216,000
Retained earnings 864,000
Total Stockholders’ equity 1,800,000
Prepare journal entries to record the following transactions for Sherman Sylvester
a. Purchased 5,000 shares of its own common stock at $25 per share on October 11
b. Sold 1,000 treasury shares on November 1 for $31 cash per share
c . Sold all remaining treasury shares on November 25 for $20 cash per share
Prepare the stockholders equity section after the October 11 treasury stock
Purchased 5,000 shares of its own common stock at $25 per share on October 11
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4. In Draco Corporation’s first year of business, the following transactions affected its equity accounts.
Issued 4,000 shares of $2 par value common stock for $18. It authorized 20,000 shares.
Issued 1,000 shares of 12%, $10 par value preferred stock for $23. It authorized 3,000 shares.
Reacquired 200 shares of common stock for $30 each. Retained earnings is impacted by reported net income of $50,000 and cash dividends of $15,000
Prepare the stockholders equity section of Draco’s balance sheet as of December 31.