11 Determining the effects of stock splits on the accounting records

The market value of Dylan Corporations common stock had become excessively high. The stock was currently selling for $240 per share. To reduce the market price of the common stock, Dylan declared a 3-for-1 stock split for the 200,000 outstanding shares of its $10 par common stock.

Required

b.

Determine the number of common shares outstanding and the par value after the split. (Round your "Par value" to 2 decimal places.)

NUMBER OF SHARES ( )

PAR VALUE ( ) PER SHARE

8 Recording and reporting common and preferred stock transactions

Goldman Inc. was organized on June 1, 2014. It was authorized to issue 500,000 shares of $10 par common stock and 100,000 shares of 4 percent cumulative class A preferred stock. The class A stock had a stated value of $50 per share. The following stock transactions pertain to Goldman Inc.:

1.	Issued 40,000 shares of common stock for $16 per share.
2.	Issued 20,000 shares of the class A preferred stock for $52 per share.
3.	Issued 60,000 shares of common stock for $20 per share.
Required
Prepare the stockholders equity section of the balance sheet immediately after these transactions have been recognized. GOLDMAN, INC. BALANCE SHEET (PARTIAL) AS OF DECEMBER 31, 2014 Stockholders Equity ___________________________ ___________________________ ___________________________ ___________________________ ___________________________ ___________________________ Total Stockholders Equity $ ____________________ Common stock Dividends Notes payable Notes receivable Paid-in capital in excess of par, common stock Paid-in capital in excess of stated value, preferred stock Preferred stock Retained earnings Treasury stock 9 Effect of no-par common and par preferred stock on the horizontal statements model LO 8-4 Bailey Corporation issued 10,000 shares of no-par common stock for $25 per share. Bailey also issued 3,000 shares of $40 par, 6 percent noncumulative preferred stock at $42 per share. Required Record these events in a horizontal statements model like the following one. In the cash flow column, indicate whether the item is an operating activity (OA), an investing activity (IA), or a financing activity (FA). Use NA to indicate that an element was not affected by the event. Show effect on the accounting equation in the order provided in the question. (Enter any decreases to account balances and cash outflows with a minus sign.) PAID-IN PREFERRED COMMON CAPITAL-IN NET STATEMENT OF EVENT CASH =STOCK + STOCK + EXCESS REVENUE - EXPENSE = INCOME CASH FLOW 1 2