The stockholders’ equity section of the balance sheet for Mann Equipment Co. at

Question

The stockholders’ equity section of the balance sheet for Mann Equipment Co. at December 31, 2018, is as follows.

Stockholders' Equity Paid-in capital Preferred stock,? par value, 4% cumulative, 290,000 shares authorized, 59,000 shares $590,006 1ssued and outstanding Common stock, $15 stated value, 340,000 shares authorized, 59,000?? shares issued and 885,000 49,000 outstanding Paid-in capital in excess of par-Preferred Paid-in capital in excess of stated 295,000 value-Common Total paid-in capital Retained earnings Treasury stock, 3,000 shares Total stockholders equity 1,819,000 440,000 42,000 $2,217,000 Note: The market value per share of the common stock is $38, and the market value per share of the preferred stock is $31

Explanation / Answer

Share outstanding after the split = (59000-3000)*2 = 112000 Shares

Amount transferred from retained earnings = $0

Market price of common Stock after split = 38/2 = $19 per share

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