HiTech Manufacturing Company has 1,000,000 shares of $1 par value capital stock outstanding on January...
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Accounting
HiTech Manufacturing Company has 1,000,000 shares of $1 par value capital stock outstanding on January 1. The following equity transactions occurred during the current year.
Apr.
30
Distributed additional shares of capital stock in a 2-for-1 stock split. Market price of stock was $27 per share.
June
1
Declared a cash dividend of $0.77 per share.
July
1
Paid the $0.77 cash dividend to stockholders.
Aug.
1
Declared a 5 percent stock dividend. Market price of stock was $19 per share.
Sept.
10
Issued shares resulting from the 5 percent stock dividend declared on August 1.
a. Prepare journal entries to record the above transactions.
b. Compute the number of shares of capital stock outstanding at year-end.
c. What is the par value per share of HiTech Manufacturing stock at the end of the year?
d. Determine the effect of each of the following on total stockholders' equity: stock split, declaration and payment of a cash dividend, declaration and distribution of a stock dividend.
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