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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