3. Ignoring parts 1&2, On January 1, 2022, Dunder Mifflin Corp, a publicly traded company, had these shareholders' equity accounts: Common shares (Unlimited number of shares authorized, 60,000 issued) Contributed surplus Retained earnings On February 1 the company declared a 3 for 1 stock split to common shareholders. The stock's market price was $100.00. February 15th is the date of record and March 1st is the date of payment. On February 15th the stock's market price was $100.00 and on March 1st the stock's market price was $25.00. Calculate the balance in number of common shares, dollars of common shares, dollars of contributed surplus and dollars of retained earnings after the above transaction at March 1st, 2022. Number of common shares Common shares Contributed surplus Retained earnings January 1, 2022 60,000 $600,000 $600,000 $30,000 $1,200,000 $30,000 $1,200,000 March 1, 2022
3. Ignoring parts 1&2, On January 1, 2022, Dunder Mifflin Corp, a publicly traded company, had these shareholders' equity accounts: Common shares (Unlimited number of shares authorized, 60,000 issued) Contributed surplus Retained earnings On February 1 the company declared a 3 for 1 stock split to common shareholders. The stock's market price was $100.00. February 15th is the date of record and March 1st is the date of payment. On February 15th the stock's market price was $100.00 and on March 1st the stock's market price was $25.00. Calculate the balance in number of common shares, dollars of common shares, dollars of contributed surplus and dollars of retained earnings after the above transaction at March 1st, 2022. Number of common shares Common shares Contributed surplus Retained earnings January 1, 2022 60,000 $600,000 $600,000 $30,000 $1,200,000 $30,000 $1,200,000 March 1, 2022
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:3.
Ignoring parts 1&2, On January 1, 2022, Dunder Mifflin Corp, a publicly traded company,
had these shareholders' equity accounts:
Common shares (Unlimited number of shares authorized, 60,000 issued)
Contributed surplus
Retained earnings
On February 1 the company declared a 3 for 1 stock split to common shareholders. The
stock's market price was $100.00. February 15th is the date of record and March 1st is the
date of payment. On February 15th the stock's market price was $100.00 and on March 1st
the stock's market price was $25.00.
Calculate the balance in number of common shares, dollars of common shares, dollars of
contributed surplus and dollars of retained earnings after the above transaction at
March 1st, 2022.
Number of common shares
Common shares
Contributed surplus
Retained earnings
January 1, 2022
60,000
$600,000
$600,000
$30,000
$1,200,000
$30,000
$1,200,000
March 1, 2022
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