Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On January 1, 2022, Pina Colada Corp. had the following stockholders' equity accounts. Common Stock ($10 par value, 80,500 shares issued and outstanding) $805,000 Paid-in
On January 1, 2022, Pina Colada Corp. had the following stockholders' equity accounts.
Common Stock ($10 par value, 80,500 shares issued and outstanding) | $805,000 | |
Paid-in Capital in Excess of ParCommon Stock | 211,000 | |
Retained Earnings | 548,000 |
During the year, the following transactions occurred.
Jan. 15 | Declared a $1 cash dividend per share to stockholders of record on January 31, payable February 15. | |
Feb. 15 | Paid the dividend declared in January. | |
Apr. 15 | Declared a 10% stock dividend to stockholders of record on April 30, distributable May 15. On April 15, the market price of the stock was $15 per share. | |
May 15 | Issued the shares for the stock dividend. | |
July 1 | Announced a 2-for-1 stock split. The market price per share prior to the announcement was $15. (The new par value is $5.) | |
Dec. 1 | Declared a $0.50 per share cash dividend to stockholders of record on December 15, payable January 10, 2023. | |
Dec. 31 | Determined that net income for the year was $245,000.
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started