Stock Dividends and Stock Splits The balance sheet of Castle Corporation includes the following stockholders' equity section: Common stock, $2 par, 80,000 shares authorized, 70,000 shares issued and outstanding $140,000 Additional paid-in capital—common stock 363,400 Total capital stock $503,400 Retained earnings 203,000 Total equity $706,400 Required: 1. Assume that Castle issued 70,000 shares for cash at the inception of the corporation and that no new shares have been issued since. Determine how much cash was received for the shares issued at inception. $fill in the blank 1 2. Assume that Castle issued 35,000 shares for cash at the inception of the corporation and subsequently declared a 2-for-1 stock split. Determine how much cash was received for the shares issued at inception. $fill in the blank 2 3. Assume that Castle issued 67,000 shares for cash at the inception of the corporation and that the remaining 3,000 shares were issued as the result of stock dividends when the stock was selling for $63 per share. Determine how much cash was received for the shares issued at inception. $fill in the blank 3
Stock Dividends and Stock Splits The balance sheet of Castle Corporation includes the following stockholders' equity section: Common stock, $2 par, 80,000 shares authorized, 70,000 shares issued and outstanding $140,000 Additional paid-in capital—common stock 363,400 Total capital stock $503,400 Retained earnings 203,000 Total equity $706,400 Required: 1. Assume that Castle issued 70,000 shares for cash at the inception of the corporation and that no new shares have been issued since. Determine how much cash was received for the shares issued at inception. $fill in the blank 1 2. Assume that Castle issued 35,000 shares for cash at the inception of the corporation and subsequently declared a 2-for-1 stock split. Determine how much cash was received for the shares issued at inception. $fill in the blank 2 3. Assume that Castle issued 67,000 shares for cash at the inception of the corporation and that the remaining 3,000 shares were issued as the result of stock dividends when the stock was selling for $63 per share. Determine how much cash was received for the shares issued at inception. $fill in the blank 3
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 72E: Stock Dividends and Stock Splits The balance sheet of Castle Corporation includes the following...
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Stock Dividends and Stock Splits
The balance sheet of Castle Corporation includes the following
| Common stock, $2 par, 80,000 shares authorized, 70,000 shares issued and outstanding | $140,000 |
| Additional paid-in capital—common stock | 363,400 |
| Total capital stock | $503,400 |
| 203,000 | |
| Total equity | $706,400 |
Required:
1. Assume that Castle issued 70,000 shares for cash at the inception of the corporation and that no new shares have been issued since. Determine how much cash was received for the shares issued at inception.
$fill in the blank 1
2. Assume that Castle issued 35,000 shares for cash at the inception of the corporation and subsequently declared a 2-for-1 stock split. Determine how much cash was received for the shares issued at inception.
$fill in the blank 2
3. Assume that Castle issued 67,000 shares for cash at the inception of the corporation and that the remaining 3,000 shares were issued as the result of stock dividends when the stock was selling for $63 per share. Determine how much cash was received for the shares issued at inception.
$fill in the blank 3
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