On october 16 2010 flavor corporation declared a 3-for-2

Assignment Help Accounting Basics

Reference no: EM13598913

Flavor Corporation
Partial balance sheet as at December 31, 2009
($ millions)
Stockholders' equity:
Common stock, $1.00 par, 80,000,000 shares
authorized, 27,900,000 issued $ 27.90
Additional paid-in capital 334.80
Retained earnings 645.26
Treasury shares, at cost (520,000 shares) (15.08)
Total stockholders' equity $992.88

History:
a. Flavor Corporation issued 13,950,000, $2.00 par common shares in its initial public offer (IPO) on July 6, 2003.
b. Flavor Corporation had a 2-for-1 stock split on September 20, 2007. The share price was $42 immediately prior to the split.
c. Flavor Corporation acquired the treasury stock in a single open market transaction on August 15, 2008.

Required:
a. At what price did Flavor Corporation issue the shares in its IPO?

b. What was the approximate price of Flavor Corporation's common stock immediately following the stock split on September 20, 2007?

c. What was the price of Flavor Corporation's common stock on August 15, 2008?

Prepare journal entries for the following transactions that occurred in 2010:
d. On May 15, 2010 Flavor Corporation issued 4,100,000 new shares for $37.00.

e. On October 16, 2010 Flavor Corporation declared a 3-for-2 stock split to be distributed on November 4, 2010 to shareholders of record on October 29, 2010. The share price of Flavor Corporation's common stock on October 16, 2010 was $39.00. (NOTE: The shares in treasury are also split and the per share cost adjusted accordingly, there is no change to the account balance).

f. On November 22, 2010 Flavor Corporation repurchased 600,000 of its common stock in an open market purchase. The price paid was $29 per share.

g. On December 3, 2010 Flavor Corporation declared a cash dividend of $0.20 per share payable on January 18, 2011 to shareholders of record on January 5, 2011.

Prepare the year-end stockholders' equity section of the balance sheet:
h. Complete the Stockholders' equity section of Flavor Corporation's Balance Sheet as at December 31, 2010. Flavor Corporation reported a net income of $31,360,000 for 2010. Include all appropriate share numbers. (Hint: Total stockholders' equity is $1,149,216,000 or in millions = $1,149.2).

Reference no: EM13598913

Questions Cloud

Inman manufacturing company makes a product that it sells : inman manufacturing company makes a product that it sells for 60 per unit. the company incurs variable manufacturing

Ppa johns internantional began in the back of a tavern in : papa johns internantional began in the back of a tavern in jeffersonville indiana and has since become the third

The marketing manager believes that a 12000 increase in the : zeeb corporation produces and sells a single product. data concerning that product appear below per unit percent of

Gallant company reported net income of 2500000 the income : gallant company reported net income of 2500000. the income statement included one extraordinary item a 500000 gain from

On october 16 2010 flavor corporation declared a 3-for-2 : flavor corporationpartial balance sheet as at december 31 2009 millionsstockholders equitycommon stock 1.00 par

Explain how these events would affect the balance sheet : hoen manufacturing company experienced the following accounting events during its first year of operation. with the

Sanchez manufacturing purchases 45000 of raw materials on : sanchez manufacturing purchases 45000 of raw materials on account and it incurs 50000 of factory labor costs.supporting

Everly corporation acquires a coal mine at a cost of 400000 : everly corporation acquires a coal mine at a cost of 400000. intangible development cost total 100000. after extraction

Consider the following scenario a private citizen makes an : consider the following scenario a private citizen makes an unrestricted pledge of 5 million to a citys museum. the city

User Account

All Pages