Q3: At the beginning of the year, Latin Times, inc., has total stockholders equity of...
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Q3: At the beginning of the year, Latin Times, inc., has total stockholders equity of $900,000 and 10,000 outstanding shares of a single class of capital stock. During the year, the corporation completes the following transactions affecting its stockholders equity accounts: (marks: 7)
Jan. 12 A 2% stock dividend is declared and distributed. (Market price, $100 per share). Apr. 10 The corporation acquires 100 shares of its own capital stock at a cost of $105 per share. Apr. 29 All 100 shares of the treasury stock are reissued at a price of $120 per share. Aug. 10 The capital stock is split 2-for-1. Dec. 11 The board of directors declares a cash dividend of $5 per share, payable on January 18. Dec. 31 Net income of $100,500 is reported for the year ended December 31.
Instructions a. Journalize all the above transactions. b. Make a stockholders equity section of the company. c. Calculate the book value per share
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