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Abraham Corporation's stockholders' equity section at December 31, 2021 appears below: Stockholders' equity Share capital Common stock, $10 par, 60,000 outstanding $600,000 Share premium 150,000
Abraham Corporation's stockholders' equity section at December 31, 2021 appears below: Stockholders' equity Share capital Common stock, $10 par, 60,000 outstanding $600,000 Share premium 150,000 Total share capital $750,000 Retained earnings 150,000 Total stockholders' equity $900,000 On June 30, 2022, the board of directors of Abraham Corporation declared a 20% stock dividend, payable on July 31, 2022, to stockholders of record on July 15, 2022. The fair value of Abraham Corporation's stock on June 30, 2022, was $15. On December 1, 2022, the board of directors declared a 2 for 1 share split effective December 15, 2022. Abraham Corporation's stock was selling for $20 on December 1, 2022, before the share split was declared. Par value of the stock was adjusted. Net income for 2022 was $190,000 and there were no cash dividends declared. REQUIRED: (a) Prepare the journal entries on the appropriate dates to record the dividend. (b) Fill in the amount that would appear in the stockholders' equity section for Abraham Corporation at December 31, 2020, for the following items. Show all calculations, if any. S 1. Common stock 2. Number of shares outstanding 3. Par value per share $ 4. Share premium S 5. Retained earnings S 6. Total stockholders' equity
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