Reference no: EM131820255

Problem

On June 30, 2011, Quinn Corporation's common stock is priced at $31 per share before any stock dividend or split, and the stockholders' equity section of its balance sheet appears as follows.

Common stock-$10 par value, 60,000 shares authorized, 25,000 shares issued and outstanding	250,000
Paid-in capital in excess of par value, common stock	100,000
Retained earnings	330,000
Total stockholders' equity	680,000

Assume that the company declares and immediately distributes a 100% stock dividend. This event is recorded by capitalizing retained earnings equal to the stock's par value. Answer these questions about stockholders' equity as it exists after issuing the new shares.

1a. What is the retained earnings balance? (Omit the "tiny_mce_markerquot; sign in your response.)

1b. What is the amount of total stockholders' equity? (Omit the "tiny_mce_markerquot; sign in your response.)

1c. How many shares are outstanding?

Assume that the company implements a 2-for-1 stock split instead of the stock dividend in part 1. Answer these questions about stockholders' equity as it exists after issuing the new shares.

2a. What is the retained earnings balance? (Omit the "tiny_mce_markerquot; sign in your response.)

2b. What is the amount of total stockholders' equity? (Omit the "tiny_mce_markerquot; sign in your response.)

2c. How many shares are outstanding?