Stock Dividends and Stock Splits Whitacre Company’s Stockholders’ Equity section of the balance sheet on December 31, 2009, was as follows:

Common stock, $10 par value, 60,000 shares issued and outstanding $ 600,000 Additional paid-in capital 480,000 Retained earnings 1,240,000 Total stockholders’ equity $2,320,000 On May 1, 2010, Whitacre declared and issued a 15% stock dividend, when the stock was selling for $20 per share. Then on November 1, it declared and issued a 2-for-1 stock split.

Required 1. How many shares of stock are outstanding at year-end?

2. What is the par value per share of these shares?

3. Develop the Stockholders’ Equity category of Whitacre’s balance sheet as of December 31, 2010.

AppendixLO1