Reference no: EM132784680
Bakersfield Semi conductor Corporation
Stockholders' Equity January 1, 2019 Common Stock
At Par: $10 par value, 5,000,000 shares authorized, 1,000,000 shs. issued $ 10,000,000
Paid-in Capital in Excess of Par Value, 25,000,000
Total Contributed Capital 35,000,000
Retained Earnings 20,000,000
Total Stockholders' Equity $ 55,000,000
Baker Semiconductor Corporation (BSC) balance sheet on January 1, 2019 contained the shareholders' equity section shown above. The following equity transactions occurred sequentially 2019 (i.e., event ii. followed event i, event iii followed event ii, and so on):
- Sold an additional 500,000 shares of authorized common stock at $50 per share to a hedge fund.
- Purchased 100,000 treasury shares at $55 per share.
- Declared a 2-for-1 stock split, increased authorized shares to 10,000,000, and reduced par value of the common Stock to $5 per share.
- Declared a 10% stock dividend. The price of BSC stock on this day was $30 a share.
- Declared and paid a cash dividend of $2.00 per share.
- Sold 100,000 treasury shares at $37.50 per share.
- Reported net income for the year ended December 31, 2019, of $4,000,000.
Required:
Problem 1; For each of the above transactions, determine the dollar amount and effect on the following: (i) Common Stock at Par, (ii) Paid in Excess of Par, (iii) Retained Earnings, (iv) Treasury Stock, (v) Total Stockholders' Equity, (vi) Shares Issued, and (vii) Shares Outstanding. Use "+" to indicate increases and "-" for a decreases in the balances.