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The December 31, 2014 stockholders\' equity section of Cedar, Inc. is as follows

ID: 2452948 • Letter: T

Question

The December 31, 2014 stockholders' equity section of Cedar, Inc. is as follows

Preferred stock 5%, $20 par, 600 shares authorized, 200 shares issued           4,000

Additional paid-in capital - preferred                                                           8,000

Common stock $1 par 4000 shares authorized 1,000 shares issue                  1,000

Additional paid in capital – common                                                             10,000

Retained earning                                                                                             22,000

Total                                                                                                                45,000

Treasury stock (50 common shares at cost                                                      8,000

Total Stockholder’ Equity                                                                              37,000

The market price of the common stock on December 31, 2014, was $10 per share. Answer the following independent questions:
1. what will the balance in the retained earnings account be immediately after the declaration of a 2-for-1 stock split?
2. If a cash dividend of $1 per share was declared to both common and preferred shareholders, what will the balance be in retained earnings immediately after the declaration?
3. What balance will be in the retained earnings account immediate

Explanation / Answer

The December 31, 2014 stockholders' equity section of Cedar, Inc. is as follows

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