Leftorium Inc. had the following balances in its shareholders' equity at the beginning of the current year: Common shares (with no par value, 9,000 shares).. $ 180,000 Retained earnings.. 92,000 Total shareholders' equity... $272,000 During the year the following transactions took place: 1. Leftorium issued 7,000 shares at $20 per share. 2. The company declared a 10% stock dividend. The market price at declaration was $21 per share. 3. The stock dividend was paid out. 4. Leftorium declared a 4 to 1 stock split. Instructions a) Provide journal entries for each transaction. b) What is the total number of shares outstanding after all of the transactions have taken place?

Leftorium Inc. had the following balances in its shareholders' equity at the beginning of the current year: Common shares (with no par value, 9,000 shares).. $ 180,000 Retained earnings.. 92,000 Total shareholders' equity... $272,000 During the year the following transactions took place: 1. Leftorium issued 7,000 shares at $20 per share. 2. The company declared a 10% stock dividend. The market price at declaration was $21 per share. 3. The stock dividend was paid out. 4. Leftorium declared a 4 to 1 stock split. Instructions a) Provide journal entries for each transaction. b) What is the total number of shares outstanding after all of the transactions have taken place?

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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