I am having difficulty figuring out the rest of this problem,primarily with regards to calculating APIC and Retained earningsfor Stock Dividends. Also, I need assistance with the fourthproblem, how to calculate the total value of shareholders'equity.
Could you please help show me how to solve?
Accounting for Share Transactions
The shareholders' equity section of the consolidated balance sheetof Wilson Industries appeared as follows at the beginning of theyear:
| Shareholders' Equity |
| Class A common stock, $0.04 par value; 20,000,000shares authorized; |
| 6,100,000 shares issued | $244,000 |
| Additional paid-in-capital | 472,508,000 |
| Retained earnings | 57,080,000 |
| Currency translation adjustment | (9,648,000) |
| Total equity | $520,184,000 |
The following events occurred sequentially during the year:
- A 2-for-1 forward stock split was executed.
- A ten percent stock dividend was distributed when the Wilsonshare price was $80 per share.
- Treasury stock valued at $12,000,000 was repurchased when theWilson share price was $75 per share.
Required
1. How many Class A common shares are outstanding following theabove events?
13260000
2. What is the par value per share of the Class A common stockfollowing the above events? Round to the nearest three decimalplaces.
$0.02
3. Prepare a spreadsheet to illustrate the financial effectsassociated with the above three share transactions.
Use a negative sign with answers to indicate a reduction in anaccount balance and with treasury stock repurchase and balance.
| Wilson Industries |
|---|
Transaction |
Stock
Split |
Stock
Dividend |
Share
Repurchase | Balance
Sheet
Totals |
|---|
| Assets |
| Cash | $0 | $0 | $ -12000000 | $ -12000000 |
| Shareholders' Equity |
| Common stock | 0 | 24400 | 0 | 24400 |
| APIC | 0 | ???? | 0 | ???? |
| Retained earnings | 0 | ???? | 0 | ???? |
| Treasury stock | 0 | 0 | -12000000 | -12000000 |
| Total Shareholders' Equity | $ ???? |
4. Calculate the total value of shareholders' equity followingthe above events.
$????
