Question
How do I calculate the dividend to pay on December 18 with the information listed? Stockholders Equity: Transactions and Statement The stockholders equity section of
How do I calculate the dividend to pay on December 18 with the information listed?
Stockholders Equity: Transactions and Statement The stockholders equity section of Night Corporations balance sheet at January 1 follows:
Common stock, $5 par value, 300,000 shares authorized, 60,000 shares |
| $300,000 |
issued, 6,000 shares in treasury |
|
|
Additional paid-in capital |
|
|
In excess of par value | $480,000 |
|
From treasury stock | 30,000 | 510,000 |
Retained earnings |
| 348,000 |
|
| 1,158,000 |
Less: Treasury stock (6,000 shares) at cost |
| 138,000 |
Total Stockholders Equity |
| $1,020,000 |
The following transactions affecting stockholders equity occurred during the year:
Jan. | 8 | Issued 15,000 shares of previously unissued common stock for $21 cash per share. |
Mar. | 12 | Sold all of the treasury shares for $28 cash per share. |
June | 30 | Declared a five percent stock dividend on all outstanding shares of common stock. The market value of the stock was $25 per share. |
July | 10 | Issued the stock dividend declared on June 30. |
Oct. | 7 | Acquired 2,500 shares of common stock as treasury stock at $26 cash per share. |
Dec. | 18 | Declared a cash dividend of $1.00 per outstanding common share, payable on January 9 to stockholders of record on December 31. |
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