Reference no: EM132385759

Question

Part A)

On August 1, 2018, Towson Corp., declared a 5% stock dividend on its common stock when the market value of the common stock was $18 per share. The balance in the common stock account, before the stock dividend was declared, was $1,000,000. The par value of all common stock is $10. What is the total dollar amount credited to additional paid in capital - common stock on August 1, 2018?

Part B)

Easton Company prepares annual adjusting entries only. During the third quarter of Fiscal Year 2018, Easton Company acquired the following trading securities:

Date  Company   # of Shares

Price per Share 8/15

X Company   1,500   $42  9/25

Y Company    1,250   30   9/30

Z Company 1,000  22

On November 10th, Easton Company sold the Y Company stock for $31 per share. On December 15th, Z Company paid dividends of $0.12 per share. The following were the year-end market values:

Company FMV per Share

X Company $45

Y Company 15

Z Company 21

What the total dollar values that Easton Company should record for the Unrealized Gain or (Loss) on Trading Securities for 2018? Enter a Loss as a negative number.