Stock Dividends and Stock Splits}

The statement of financial position of Chungking Corporation includes the following shareholders' equity section:

\section*{Required:}
1. Assume that Chungking issued 60,000 shares for cash at the inception of the corporation and that no new shares have been issued since. Determine how much cash was received for the shares issued at inception.
2. Assume that Chungking issued 30,000 shares for cash at the inception of the corpcration and subsequently declared a 2 -for-1 stock split. Determine how much cash was received for the shares issued at inception.
3. Assume that Chungking issued 57,000 shares for cash at the inception of the corporation and that the remaining 3,000 shares were issued as the result of stock dividends when the shares were selling for \(\$ 53\) per share. Determine how much cash was received for the shares issued at inception.
\section*{OBJECTIVE 3 Exercise

Transcribed Image Text:

Common shares, no par, unlimited shares Retained earnings authorized, 60,000 shares issued and outstanding $491,800 173,000 Total equity $664,800