s****i
发帖数: 66 | 1 Pugh Co. reported the following in its statement of stockholders' equity on
January 1 of the current year:
Common stock, $5 par value, authorized 200,000 shares, issued 100,000 shares
$ 500,000
Additional paid-in capital 1,500,000
Retained earnings 516,000
2,516,000
Less treasury stock, at cost, 5,000 shares (40,000)
Total stockholders' equity $2,476,000
The following events occurred during the current year:
May 1 - 1,000 shares of treasury stock were sold for $10,000.
July 9 - 10,000 shares of previously unissued common stock were sold for $12
per share.
October 1 - The distribution of a 2-for-1 stock split resulted in the common
stock's per share par value
being halved.
Pugh accounts for treasury stock under the cost method. Laws in the state of
Pugh's incorporation protect
shares held in treasury from dilution when stock dividends or stock splits
are declared.
In Pugh's December 31 statement of stockholders' equity, the par value of
the issued common stock should
be:
a. $550,000
b. $518,000
c. $291,000
d. $275,000
Explanation
Choice "a" is correct. $550,000. At year-end there will be 220,000 shares
issued with a par value of $2.50.
Issued common stock is calculated as follows:
Issued shares, 1/1 100,000
New stock issued, 7/9 10,000
2-for-1 stock split, 10/1 110,000
220,000
Because the laws in Pugh's state protect the treasury shares from dilution,
the stock split will increase the
number of shares issued and not just the number of shares outstanding. | m****i
发帖数: 1401 | 2 人家问的是par value,就是很简单的，到年底的时候有多少share outstanding再乘以$
5/share就是了。 |
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