Stock Dividends and Stock Splits Whitacre Company's Stockholders' Equity section of the balance sheet on December 31, 2016, was as follows: Common stock, $10 par value, 60,000 shares $600,000 issued and outstanding Additional paid-in capital 480,000 Retained earnings 1,240,000 Total stockholders' equity $2,320,000 On May 1, 2017, Whitacre declared and issued a 15% stock dividend, when the stock was selling for $20 per share. Then on November 1, it declared and issued a 2-for-1 stock split.
Stock Dividends and Stock Splits Whitacre Company's Stockholders' Equity section of the balance sheet on December 31, 2016, was as follows: Common stock, $10 par value, 60,000 shares $600,000 issued and outstanding Additional paid-in capital 480,000 Retained earnings 1,240,000 Total stockholders' equity $2,320,000 On May 1, 2017, Whitacre declared and issued a 15% stock dividend, when the stock was selling for $20 per share. Then on November 1, it declared and issued a 2-for-1 stock split.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Stock Dividends and Stock Splits
Whitacre Company's Stockholders' Equity section of the balance sheet on December 31, 2016, was as follows:
Common stock, $10 par value, 60,000 shares $600,000
issued and outstanding
Additional paid-in capital
480,000
Retained earnings
1,240,000
Total stockholders' equity
$2,320,000
On May 1, 2017, Whitacre declared and issued a 15% stock dividend, when the stock was selling for $20 per share. Then on
November 1, it declared and issued a 2-for-1 stock split.
Required:
1. How many shares of stock are outstanding at year-end?
X shares
2. What is the par value per share of these shares?
||X per share
Transcribed Image Text:1. How many shares of stock are outstanding at year-end?
X shares
2. What is the par value per share of these shares?
X per share
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3. Develop the Stockholders' Equity category of Whitacre's balance sheet as of December 31, 2017.
Whitacre Company
Partial Balance Sheet - Stockholders' Equity Section
December 31, 2017
Common stock, $5 par value, 138,000 shares issued and outstanding v
Additional paid-in capital
Retained earnings
Total stockholders' equity
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