Common treasury stock, 200 shares at cost: $ 20,000
Additional paid-in capital-preferred: $ 16,000
Retained earnings: $ 24,000
Common stock, $4 par value, authorized 4,000 shares: $ 4,000
Additional paid-in capital common: $ 46,000
The market price of the stock on December 31 was $20 per share. All the shares of common stock were issued on May 1, two years earlier.
Answer each of the following independent questions:
A.How much is considered contributed capital?
B.How much was each share of common stock initially sold for?
C.If Big Chickendid not pay dividends the first two years of operations, what effect would the cumulative feature have on year three when dividends are declared?
D.How many shares of common stock would be outstanding immediately after a 4-for-1 forward split?
E.How many shares of common stock will be outstanding immediately after the declaration of a 15% common stock dividend?
F.What impact will a 15% common stock dividend have on total stockholders equity?
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