Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The stockholders' equity section of Pronghorn Corporation's balance sheet as of December 31, 2020 is as follows: Stockholders' Equity Common stock, $5 par value; authorized,
The stockholders' equity section of Pronghorn Corporation's balance sheet as of December 31, 2020 is as follows: Stockholders' Equity Common stock, $5 par value; authorized, 1,500,000 shares; issued, 300,000 shares Paid-in capital in excess of par Retained earnings $1,500,000 840,000 3,060,000 $5,400,000 The following events occurred during 2021: 1. 2. 3. 4. 5. Jan. 5 Jan. 16 Feb. 10 March 1 April 1 32,000 shares of authorized and unissued common stock were sold for $8 per share. Declared a cash dividend of 20 cents per share, payable February 15 to stockholders of record on February 5. 40,000 shares of authorized and unissued common stock were sold for $13 per share. A 30% stock dividend was declared and issued. Fair value per share is currently $15. A two-for-one split was carried out. The par value of the stock was to be reduced to $2.50 per share. Fair value on March 31 was $18 per share. A 15% stock dividend was declared and issued. Fair value is currently $10 per share. A cash dividend of 20 cents per share was declared, payable September 1 to stockholders of record on August 21. 6. July 1 7. Aug. 1 Enter the above events into the following work sheet showing how each event affects the column. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses eg. (45). Do not leave any answer field blank. Enter for amounts.) No. of Shares Issued Common Stock Total Par Value Paid-in Capital in Excess of Par Retained Earnings $ $ $ Item Beginning Balance- 1/1/21 Event #1 -Jan. 5 Balance $ $ $ Event #2 - Jan. 16 Balance Event #3 -- Feb. 10 $ $ $ Balance $ $ $ Event #4 - March 1 Balance $ $ $ Event #5 -April 1 $ $ $ Balance Event #6 - July 1 Balance $ $ $ Event #7 -Aug. 1 Balance $ $ $
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