Question
The shareholders' equity section of the consolidated balance sheet of Wilson Industries appeared as follows at the beginning of the year: Shareholders' Equity Class A
The shareholders' equity section of the consolidated balance sheet of Wilson Industries appeared as follows at the beginning of the year:
Shareholders' Equity | |
Class A common stock, $0.04 par value; 20,000,000 shares authorized; | |
6,100,000 shares issued | $244,000 |
Additional paid-in-capital | 472,508,000 |
Retained earnings | 57,080,000 |
Currency translation adjustment | (9,648,000) |
Total equity | $520,184,000 |
The following events occurred sequentially during the year:
- A 2-for-1 forward stock split was executed.
- A ten percent stock dividend was distributed when the Wilson share price was $80 per share.
- Treasury stock valued at $12,000,000 was repurchased when the Wilson share price was $75 per share.
Required
1. How many Class A common shares are outstanding following the above events?
Answer
2. What is the par value per share of the Class A common stock following the above events? Round to the nearest three decimal places.
$Answer
3. Prepare a spreadsheet to illustrate the financial effects associated with the above three share transactions.
Use a negative sign with answers to indicate a reduction in an account balance and with treasury stock repurchase and balance.
Wilson Industries | ||||
---|---|---|---|---|
Transaction | Stock Split | Stock Dividend | Share Repurchase | Balance Sheet Totals |
Assets | ||||
Cash | Answer
| Answer
| Answer
| Answer
|
Shareholders' Equity | ||||
Common stock | Answer
| Answer
| Answer
| Answer
|
APIC | Answer
| Answer
| Answer
| Answer
|
Retained earnings | Answer
| Answer
| Answer
| Answer
|
Treasury stock | Answer
| Answer
| Answer
| Answer
|
Total Shareholders' Equity | Answer
|
4. Calculate the total value of shareholders' equity following the above events.
$Answer
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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