The stockholders' equity section of Beta Corporation's balance sheet as of December 31, 2025 is as follows: Stockholders' Equity Common stock, $5 par value; authorized, 2,000,000 shares; issued, 600,000 shares Paid-in capital in excess of par Retained earnings The following events occurred during 2026: 1. Jan. 5 2. Jan. 16 3. Feb. 20 4. March 1 5. April 1 6. July 1 7. Aug. 1 $3,000,000 850,000 4,500,000 $8,350,000 45,000 shares of common stock were sold for $8 per share. Declared a cash dividend of 20 cents per share, payable February 15 to stockholders of rec on February 5. 60,000 shares of authorized and unissued common stock were sold for $12 per share. A 30% stock dividend was declared and issued. Fair value per share is currently $15. A two-for-one split was carried out. The par value of the stock was to be reduced to $2.50 share. Fair value on March 31 was $18 per share. A 15% stock dividend was declared and issued. Fair value is currently $10 per share. A cash dividend of 20 cents per share was declared, payable September 1 to stockholder record on August 21. REQUIRED: 1. Record the journal entries on the following page. 2. Answer the following questions: a. What is the number of common shares outstanding on December 31, 2026? b. What is the balance in Retained Earnings on December 31, 2026?
The stockholders' equity section of Beta Corporation's balance sheet as of December 31, 2025 is as follows: Stockholders' Equity Common stock, $5 par value; authorized, 2,000,000 shares; issued, 600,000 shares Paid-in capital in excess of par Retained earnings The following events occurred during 2026: 1. Jan. 5 2. Jan. 16 3. Feb. 20 4. March 1 5. April 1 6. July 1 7. Aug. 1 $3,000,000 850,000 4,500,000 $8,350,000 45,000 shares of common stock were sold for $8 per share. Declared a cash dividend of 20 cents per share, payable February 15 to stockholders of rec on February 5. 60,000 shares of authorized and unissued common stock were sold for $12 per share. A 30% stock dividend was declared and issued. Fair value per share is currently $15. A two-for-one split was carried out. The par value of the stock was to be reduced to $2.50 share. Fair value on March 31 was $18 per share. A 15% stock dividend was declared and issued. Fair value is currently $10 per share. A cash dividend of 20 cents per share was declared, payable September 1 to stockholder record on August 21. REQUIRED: 1. Record the journal entries on the following page. 2. Answer the following questions: a. What is the number of common shares outstanding on December 31, 2026? b. What is the balance in Retained Earnings on December 31, 2026?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
Transcribed Image Text:The stockholders' equity section of Beta Corporation's balance sheet as of December 31, 2025 is as follows:
Stockholders' Equity
Common stock, $5 par value; authorized, 2,000,000 shares;
issued, 600,000 shares
Paid-in capital in excess of par
Retained earnings
The following events occurred during 2026:
1. Jan. 5
2. Jan. 16
3. Feb. 20
4. March 1
5. April 1
6. July 1
7. Aug. 1
$3,000,000
850,000
4,500,000
$8,350,000
45,000 shares of common stock were sold for $8 per share.
Declared a cash dividend of 20 cents per share, payable February 15 to stockholders of rec
on February 5.
60,000 shares of authorized and unissued common stock were sold for $12 per share.
A 30% stock dividend was declared and issued. Fair value per share is currently $15.
A two-for-one split was carried out. The par value of the stock was to be reduced to $2.50
share. Fair value on March 31 was $18 per share.
A 15% stock dividend was declared and issued. Fair value is currently $10 per share.
A cash dividend of 20 cents per share was declared, payable September 1 to stockholder
record on August 21.
REQUIRED:
1. Record the journal entries on the following page.
2. Answer the following questions:
a. What is the number of common shares outstanding on December 31, 2026?
b. What is the balance in Retained Earnings on December 31, 2026?
Expert Solution
Step 1
Note :
Stock dividend is nothing but capitalisation of profit, it is a payment to shareholders that is made in additional shares instead of cash, and adverse effect of diluting EPS.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Follow-up Questions
Read through expert solutions to related follow-up questions below.
Follow-up Question
For March 1, how did you get the 211,500 that you multiply by 5
Solution
by Bartleby ExpertRecommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education