1. Mambo Corporations December 31, 2020 balance sheet showed the following Shareholder Equity:

Paid in Capital:
8% preferred stock, $20 par value, cumulative	$ 150,000
Common stock, $10 par value	500,000
Additional Paid-in capital in excess of parP/S	200,000
Additional Paid-in capital in excess of parC/S	900,000
Total Paid In Capital	1,750,000
Retained Earnings	2,000,000
Total Shareholders' Equity	$ 3,750,000

A 40% common stock dividend is declared when the market price is $16.

1. The number of shares to be distributed on date of payment is?
2. Right after the payment of the common stock dividend the balance in the Common Stock account will be?
3. Right after the declaration of the common stock dividend the balance in the Additional Paid-in capital in excess of par - C/S account will be?
4. The par value of the stock after the distribution of the common stock dividend will be?
5. After the distribution of the common stock dividend the total shareholders' equity will equal?

2. Simba Corporations December 31, 2020 balance sheet showed the following Shareholder Equity:

Paid in Capital:
8% preferred stock, $20 par value, noncumulative	$ 200,000
Common stock, $10 par value	500,000
Additional Paid-in capital in excess of parP/S	100,000
Additional Paid-in capital in excess of parC/S	300,000
Total Paid In Capital	1,100,000
Retained Earnings	2,000,000
Total Shareholders' Equity	$ 3,100,000

Assume that no shares of preferred or common stock were issued during 2020. Further assume that net income for 2020 was $166,000. The market price of Simba's common stock is $42 on December 31, 2020. The price earnings (p/e) ratio of Simba's common shares was __________ times on that date?

3. A corporation has the following account balances: Common stock, $2 par value, $60,000; Paid-in Capital in Excess of Par, $210,000. Based on this information, the average price per share issued is _____?
4. Vaughan Company has 100,000 shares of $20 par value Common Stock issued before it declares and issues a 4-for-1 common stock split. The market price right before the split was $320 per share. After the 4 for 1 split, there will be 400,000 shares of $5 par value issued and the market price should be around $80.

Ture or Flase?

5. Sally's Beauty Supply Company originally issued 4,000 shares of $10 par value common stock for $120,000 ($30 per share). Sally subsequently purchases 400 shares of treasury stock for $27 per share and later resells the 400 shares of treasury stock for $29 per share. In the entry to record the sale of the treasury stock, there will be a?