Sendak Corporation has the following equity section of the balance sheet as it appears on...
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Accounting
Sendak Corporation has the following equity section of the balance sheet as it appears on December 31, 2015:
Common Stock ($1 par, 400,000 shares issued and outstanding) $400,000
Additional Paid-in Capital 2,000,000
Retained Earnings 9,000,000
Total Owners Equity 11,400,000
a. At what unit price did Sendak issue its common stocks (assuming that all shares were sold at the same price)?
b. On February 2, 2016, Sendak purchased 20,000 shares of its stocks for $5 a share. Prepare the owners equity section of the balance sheet for February 2, 2016.
c. On June 20, 2016, when its stock price is $7 a share, Sendak Corporation declared and issued a 15% stock dividend. Prepare the owners equity section of the balance sheet for June 20, 2016.
d. On October 11, 2016, when its stock price is $8 a share, Sendak Corporation declared and issued a 40% stock dividend. Prepare the owners equity section of the balance sheet for October 11, 2016.
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