Question
Ignoring parts 1, 2 & 3, on January 1, 2022, Dunder Mifflin Corp, a publicly traded company, had these shareholders equity accounts: Common shares (Unlimited
Ignoring parts 1, 2 & 3, on January 1, 2022, Dunder Mifflin Corp, a publicly traded company, had these shareholders equity accounts:
Common shares (Unlimited number of shares authorized, 60,000 issued) $600,000
Contributed surplus $30,000
Retained earnings $1,200,000
On February 1 the company declared a $1 per share cash dividend to common shareholders. The stocks market price was $30.00. February 15th is the date of record and March 1st is the date of payment. On February 15th the stocks market price was $31.00 and on March 1'st the stocks market price was $32.00.
Calculate the balance in number of common shares, dollars of common shares, dollars of contributed surplus and dollars of retained earnings after the above transaction at March 1 st , 2022.
January 1, 2022 | march 1, 2022 | ||
number of common shares | 60,000 | ||
common shares | 600,000 | ||
contributed surplus | 30,000 | ||
retained earnings | 1,200,000 |
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