hapters 10, 11 &13) Required information The following information applies to th

Question

hapters 10, 11 &13) Required information The following information applies to the questions displayed below. The stockholders' equity of TVX Company at the beginning of the day on February 5 follows: Conmon stock-$10 par value, 150, 0ee shares authorized, 68, 880 shares issued and outstanding Paid-in capital in excess of par value, conmon stock $ 68,000 525, 800 675,609 $1, 888, 06 Total stockholders equity On February 5, the directors declare a 16% stock dividend distributable on February 28 to the February 15 stockholders of record. The stock's market value is $41 per share on February 5 before the stock dividend. The stock's market value is $35 per share on February 28 2. One stockholder owned 1,000 shares on February 5 before the dividend. Compute the book value per share and total book value of this stockholder's shares immediately before and after the stock dividend of February 5. (Round your "Book value per share" answers to 3 decimal places) Book value per share Total book value of shares 96 5 6 8 9

Explanation / Answer

Common stock—$10 par value, 150,000 shares authorized, 68,000 shares issued and   outstanding 680000 Paid-in capital in excess of par value, common stock 525000 Retained earnings 675000 Total stockholders’ equity 1880000 16% stock dividend Stock Market Value = $41 per share on 05 feb Stock Market Value = $35 per share on 28 feb 5.02 retained Earnings 446080 Common Stock Dividend Distributable 108800 Paid-in capital in excess of par value, common stock 337280 28.02 Common Stock Dividend Distributable 108800 Common Stock $10 par vaue 108800 Note Shares to be isssued = 68000 shares *16% = 10880 shares Retained Earnings: (10880 × $41) = $446,808 Common Stock Dividend Distributable: 10880 shares × $10 per share = $108800 Paid-In Capital in Excess of Par Value, Common Stock: 446080 – $108880 = $337280 2 Before After Book Value per share $                27.65 $                23.83 Total Book Value of share $        27,647.06 $        27,647.06 Explanation Before After Total stockholders’ equity [1] $ 1,880,000.00 $ 1,880,000.00 Issued and distributable shares [2] 68000 78880 Book value per share [1]/[2] $                27.65 $                23.83 Shares Owned 1000 1160 [1000 + 160 shares] Total book Value of shares $        27,647.06 $        27,647.06

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