Pasquali Corporation was incorporated on January 1, 20X4. The following equity-related transactions occurred during 20X4. Evaluate these

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Pasquali Corporation was incorporated on January 1, 20X4. The following equity-related transactions occurred during 20X4. Evaluate these activities and prepare a statement of stockholders' equity for the year ending December 31, 20X4.

Issued 4,000,000 shares of $1$1 par value common stock at $3$3 per share.

Declared and issued a 5% stock dividend (200,000 shares) at a time when the market value the stock was $6$6 per share.

Reacquired 15,000 treasury shares at $5$5 per share.

Declared and paid cash dividends of $100$100,000.

Reported net income for the full year of $1$1,500,000.

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Financial Accounting

ISBN: 9781456352974

1st Edition

Authors: Dr. Larry M. Walther

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