Dividends,Stock Splits, and Stockholders' Equity

The stockholders' equity section of Minh, Inc.'s balance sheet as of December 31, 2013, follows.

Contributed capital:Common stock, $3 par value, 1,000,000 shares authorized, 80,000

shares issued and outstanding$240,000Additional paid-in capital75,000Total contributed capital$315,000Retained earnings240,000Total stockholders' equity$555,000A review of Minh's stockholders' equity records disclosed the following transactions during 2014:

Mar. 25The board of directors declared a 5 percent stock dividend to stockholders of record on April 20 to be distributed on May 1. The market value of the common stock was $21 per share.Apr. 20Date of record for stock dividend.May 1Issued stock dividend.Sept. 10Declared a 3-for-1 stock split.Dec. 15Declared a 10 percent stock dividend to stockholders of record on January 15 to be distributed on February 15. The market price on this date is $9 per share.

1.Record the stockholders' equity components of these transactions using T accounts.

1- Common Stock

2-Common Stock Distributable

3-Additional Paid-in Capital

4-Retained Earnings

5- Stock Dividends

2.Prepare the stockholders' equity section of Minh's balance sheet as of December 31, 2014. Assume net income for 2014 is $494,000.

Balance sheet

Contributed capital:

1-

2-

3-

Total contributed capital:

Total stockholders' equity:

If you owned 2,000 shares of Minh stock on March 1, 2014, how many shares would you own on February 15, 2015?

Would your proportionate share of the ownership of the company be different on the latter date from what it was on the former date?

Select

Yes

No