Question
Clark Company has 100,000 shares of common stock ($1 par value) outstanding on January 1, 2017, with additional paid-in capital of $1,000,000. On January 1,
Clark Company has 100,000 shares of common stock ($1 par value) outstanding on January 1, 2017, with additional paid-in capital of $1,000,000. On January 1, 2018, the company declares a 2:1 stock split when the stock price was $80. On January 1, 2019, the company declares a 50% stock dividend when the stock price was $70. Net income for the three years is as follows:
- 2017 - $100,000
- 2018 - $220,000
- 2019 - $380,000
Clark prepares comparative balance sheets and income statements with all three years at the end of 2019. What would be reported for the following on these comparative financial statements?
2017 2018 2019
Common stock
Additional paid-in capital
Basic earnings per share
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