Question
Mavis corporation has 75,000 shares of $1 par value stock outstandiing. The largest single stockholders is Lennox Bing, who owns 6,000 shares. On December 31,
Mavis corporation has 75,000 shares of $1 par value stock outstandiing. The largest single stockholders is Lennox Bing, who owns 6,000 shares. On December 31, the total assets of the company amount to $4,360,000 and total liabilities to $2,230,000. On that day, the board of directors declared a stock dividend of one new share for each five shares outstanding. Compute the following: Book value per share before the stock dividend:( ) Book value per share after the stock dividend ( ) Total book value of Lennox Bing's stockholdings before the dividend ( ) Total book value of Lennox Bing's stockholdings after the dividend ( ) Prepare the stockholder's equity section of the Mavis Corporation balance sheet assuming that retained earning is $1,650,000 and there are no perferred stocks.
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