Question
Bramble Corp.'s stockholders' equity section at December 31, 2019, appears below: Stockholder's equity Paid-in capital Common stock, $10 par, 66,000 outstanding $660,000 Paid-in capital in
Bramble Corp.'s stockholders' equity section at December 31, 2019, appears below:
Stockholder's equity | ||||||||
Paid-in capital | ||||||||
Common stock, $10 par, 66,000 outstanding | $660,000 | |||||||
Paid-in capital in excess of par | 176,000 | |||||||
Total paid-in capital | $836,000 | |||||||
Retained earnings | 154,000 | |||||||
Total stockholder's equity | $990,000 |
On June 30, 2020, the board of directors of Bramble Corp. declared a 15% stock dividend, payable on July 31, 2020, to stockholders of record on July 15, 2020. The fair value of Bramble Corp.s stock on June 30, 2020, was $16. On December 1, 2020, the board of directors declared a 2-for-1 stock split effective December 15, 2020. Bramble Corp.s stock was selling for $18 on December 1, 2020, before the stock split was declared. Par value of the stock was adjusted. Net income for 2020 was $226,000 and there were no cash dividends declared.
a) Prepare the journal entries on the appropriate dates to record the stock dividend and the stock split.:
b) determine the amounts that would appear in the stockholders equity section for bramble corps at fiscal year end, December 31, 2019, for the following items:
1. common stock
2. number of shares outstanding
3. par value per share
4. paid-in capital in excess of par
5. retained earnings
6. total stockholders' equity
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started