Use the following to answer questions 13 - 17KMC Corp.'s management is considering either a 100%stock dividend or a 2-for-1 stock split.Complete the following chart to assist in answering thefollowing:After 2-for-1Stock Dividend Stock SplitAfter 100%BeforeCommon stock, $0.50 par value $250,000Additional paid-in capital25,000,000Total paid-in capital25,250,000Retained Earnings500,000Total stockholders' equity$25,750,000Shares outstanding500,000Par value per share$0.50Share price$250.0013.$what amount is in Total paid-in capital account?After the 100% stock dividend14.After the 100% stock dividendwhat amount is in the retained earnings account?15.2$After the 100% stock dividend whatis the par valuepershare?$amount is in Total paid in capital account?16.After the 2-for-1 stock split what$the17.After the 2-for-1 stock split what isshare?par valueper L.Mar Issue 5,000 additional shares of preferred stock fors102.50 per share1-AprIssue 100,000 additional shares of common stock forIs25.00 реr shareDeclare a cash dividend on both common and1-Jun preferred stock of $0.75 per share to all stockholdersof record on June 15.30-Jun Pay the cash dividend declared on June 1.LAve Repurchase (buy) 50,000 shares of common treasurystock for $26.00 per shareLo Resell 40,000 shares of treasury stock purchased onAugust 1 for $26.50 per share31-Dec Net income for the year was $750,000The beginning balances are shown below. Complete theStockholders' EquityStatement ofusing the aboveinformation:AdditionalTotalPaid-inСapitalStockholders'EquityPreferredCommonRetainedTreasuryStockStockStockEarningsBeginning balance20XC$1,000,000$80,000$7,600,000$1,200,000so$9,880,000Issuance of stockNet income for the yearLess: DividendsPurchase Treasury stockResell Treasury stockEnding balance 20XC6.2$When the shares were issued onMarch 1, how much did additional paid in capitalincrease?On August 1st when the shares wereequity7.repurchased,decrease?how muchdid stockholders'8.2$On August 1st when the shares wererepurchased, how much did net income decrease?9.$On October 1st when the 40,000shares were resold, how much did additional paid incapital change (if decrease put "-“ in front of thenumber)?On June 1st when the dividendwas declared, how much did retained earning decrease?10.$11.$Compute ending retained earningson December 31st.12.$Compute ending stockholdersequity on December 31st.

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FINANCIAL ACCOUNTING

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Chapter1: Financial Statements And Business Decisions

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State the stockholder’s equity of the Alphabet Corporation if it has a current net profit of $1,500,000, beginning-of-the-period retained earnings of $3,675,000, 1 million shares of common stock issued at a par value of $1 per share, and paid-in capital in excess of par of $12.50 per share?
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