Accounting for Share Transactions The shareholders' equity section of the consolidated balance sheet of Watson Industries appeared as follows at the beginning of the year: Shareholders' Equity Class A common stock, $0.01 par value; 20,000,000 shares authorized; 7,500,000 shares issued Additional paid-in-capital Retained earnings Currency translation adjustment Total equity $75,000 120,146,138 14,270,000 (2,412,000) $132,079,138 The following events occurred sequentially during the year: 1. A 2-for-1 forward stock split was executed. 2. A ten percent stock dividend was distributed when the Watson share price was $21 per share. 3. Treasury stock valued at $3,000,000 was repurchased when the Watson share price was $15 per share. Required 1. How many Class A common shares are outstanding following the above events? 16,300,000 2. What is the par value per share of the Class A common stock following the above events? Round to the nearest three decimal places. $ 0.005 3. Prepare a spreadsheet to illustrate the financial effects associated with the above three share transactions. Use a negative sign with answers to indicate a reduction in an account balance and with treasury stock repurchase and balance. Transaction Assets Cash Shareholders' Equity $ Watson Industries Stock Split Stock Dividend Balance Share Repurchase Sheet Totals $ (3,000,000) $ (3,000,000) Common stock APIC 0 0~ 7,500 0 7,500 0 * 0 0 x Retained earnings 0~ 6,100 x 0 0 x Treasury stock 0~ 0 (3,000,000) Total Shareholders' Equity $ (3,000,000) 7,500 x 4. Calculate the total value of shareholders' equity following the above events. $ 0 x(in thousands)