At the beginning of the year, the stockholders' equity section of the balance sheet of Solutions Corporation reflected the following: Common stock ($13 par value; 84,000 shares authorized, 36,000 shares outstanding) Additional paid-in capital Retained earnings. $ 468,000 121,000 748,000 On February 1, the board of directors declared a 60 percent stock dividend to be issued April 30. The market value of the stock on February 1 was $16 per share. The market value of the stock on April 30 was $18 per share. Required: 1. Complete the following table: 3. If instead of declaring a stock dividend the company had announced a 3-for-1 stock split, how would total stockholders' equity be affected? Complete this question by entering your answers in the tabs below.
At the beginning of the year, the stockholders' equity section of the balance sheet of Solutions Corporation reflected the following: Common stock ($13 par value; 84,000 shares authorized, 36,000 shares outstanding) Additional paid-in capital Retained earnings. $ 468,000 121,000 748,000 On February 1, the board of directors declared a 60 percent stock dividend to be issued April 30. The market value of the stock on February 1 was $16 per share. The market value of the stock on April 30 was $18 per share. Required: 1. Complete the following table: 3. If instead of declaring a stock dividend the company had announced a 3-for-1 stock split, how would total stockholders' equity be affected? Complete this question by entering your answers in the tabs below.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:At the beginning of the year, the stockholders' equity section of the balance sheet of Solutions Corporation reflected the following:
Common stock ($13 par value; 84,000 shares
authorized, 36,000 shares outstanding)
Additional paid-in capital
Retained earnings
On February 1, the board of directors declared a 60 percent stock dividend to be issued April 30. The market value of the stock on
February 1 was $16 per share. The market value of the stock on April 30 was $18 per share.
Required:
1. Complete the following table:
3. If instead of declaring a stock dividend the company had announced a 3-for-1 stock split, how would total stockholders' equity be
affected?
Complete this question by entering your answers in the tabs below.
Required 1 Required 3
Complete the following table:
$ 468,000
121,000
748,000
Contributed capital:
Common stock
Additional paid-in capital
Retained earnings
Total stockholders' equity
SOLUTIONS CORPORATION
Balance Sheet (Partial)
At February 1, This Year
Stockholders' Equity
Before Stock Dividend After Stock Dividend
< Required 1
Required 3 >
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