At December 31, 2018, Western Corporation had 40,000 shares outstanding of $90 par value commonstock. The shares were originally issued for $252 per share. On January 1, 2019, Pacific split its commonstock 3 for 1 with a corresponding reduction in the stock's par value.After the split, the balance of the common stock paid-in-capital account is:1. $18,000,0002. $10,080,0003. $10,800,0004. $ 3,600,000

Stock split means when one share of the company is being split into multiple shares.Stock split…

Answered: At December 31, 2018, Western…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Clark Company has 100,000 shares of common stock ($1 par value) outstanding on January 1, 2017, with additional paid-in capital of $1,000,000. On January 1, 2018, the company declares a 2:1 stock split when the stock price was $80. On January 1, 2019, the company declares a 50% stock dividend when the stock price was $70. Net income for the three years is as follows: 2017 - $100,000 2018 - $220,000 2019 - $380,000 Clark prepares comparative balance sheets and income statements with all three years at the end of 2019. What would be reported for the following on these comparative financial statements? 2017 2018 2019 Common stock Additional paid-in capital Basic earnings per share
Herman Inc. has 180,000 shares of $5 par common stock outstanding at the beginning of the year 2022. The following transactions affecting stockholders’ equity occured suring the year. Assume Paid-in Capital—Treasury Stock has a zero beginning balance. · January 15: Purchased common stock as treasury shares, 6,000 shares at $20. · April 15: Sold common treasury stock, 2,400 shares at $14. The journal entry on April 15, 2022 will include: A) A credit to Treasury Stock for $120,000 B) A debit to Retained Earnings for $14,400 C) A debit to Treasury Stock for $48,000 D) A debit to Paid-in-Capital, Treasury Stock for $14,400
Gary Company reported the following amounts in the equity section of its Dec. 31, 2020, statement of financial position. Share capital - Preference. 8%, P100 par (10,000 shares authorized, 2,000 shares issued) P200,000 Share capital-ordinary, P5 par (100,000 shares authorized, 20,000 shares issued) 100,000 Share premium 125,000 Retained earnings 450,000 Total 875,000 During 2021, Gary took part in the following transactions concerning equity. Paid the annual 2020 P8 per share dividend on preference shares and a P2 per share dividend on ordinary shares. These dividends had been declared on Dec. 31, 2020. Purchase 2,700 shares of its own outstanding ordinary shares for P40 per share. Gary uses the cost method. Reissued 700 treasury…
On July 1, 2021, Funk Company has 400,000 shares of P25 par ordinary outstanding and the market price of the stock is P50 per share. The company also has 50,000 ordinary shares in the treasury reacquired at a total cost of P1,650,000 On the same date, Funk Company declared a 1 for 5 share split. Immediately before the split, the total Share premium was P1,500,000. What should be the balance in Funk Company’s Ordinary share account after the share split is effected? a. 25,000,000 b. 2,000,000 c. 20,000,000 d. 10,000,000

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