Question

On January 1, 2020, Ven Corporation had the following stockholders’ equity accounts.

Common Stock (no par value, 90,000 shares issued and outstanding) $1,600,000

Retained Earnings 500,000

During the year, the following transactions occurred.

Feb. 1 Declared a $1 cash dividend per share to stockholders of record on February 15, payable March 1.

Mar. 1 Paid the dividend declared in February.

Apr. 1 Announced a 3-for-1 stock split. Prior to the split, the market price per share was $36.

July 1 Declared a 5% stock dividend to stockholders of record on July 15, distributable July 31. On July 1, the market price of the stock was $16 per share.

31 Issued the shares for the stock dividend.

Dec. 1 Declared a $0.5 per share dividend to stockholders of record on December 15, payable January 5, 2021.

31 Determined that net income for the year was $350,000.

Prepare the stockholders' equity section of the balance sheet at March 31, (Enter account namวe only and do not provide descriptive information. Round answers to 0 decimal places, eg. 5,250.) VEN CORPORATION Partial Balance sheet

Answer 1

Answer
Partial Balance Sheet
as at Mar 31
Stockholder's Equity
Paid in Capital
Capital Stock:
Common Stock [90000 shares]	$1,600,000
Retained earnings [500000 - 90000 cash dividends]	$410,000
Total Stockholder's Equity	$2,010,000
Partial Balance Sheet
as at June 30
Stockholder's Equity
Paid in Capital
Capital Stock:
Common Stock [270000 shares]	$1,600,000
Retained earnings	$410,000
Total Stockholder's Equity	$2,010,000
Partial Balance Sheet
as at Sept 30
Stockholder's Equity
Paid in Capital
Capital Stock:
Common Stock [283500 shares]	$1,600,000
Retained earnings [410000 - 216000 stock dividend]	$194,000
Total Stockholder's Equity	$1,794,000
Partial Balance Sheet
as at Mar 31
Stockholder's Equity
Paid in Capital
Capital Stock:
Common Stock [283500 shares]	$1,600,000
Retained earnings [194000 - 141750 cash dividend]
Total Stockholder's Equity	$1,600,000

Workings
	Shares
	No. of shares	Cumulative no. of shares	Amount	Cash Dividend	Stock Dividend
Beginning balance	90,000	90,000	$1,600,000	$0	$0
Feb-01	-	90,000	$0	$90,000 [90000 shares x $1]	$0
Apr-01	180,000 [270000 – 90000]	270,000 [90000 x 3/1 split ratio]	$0	$0	$0
Jul-01	13,500 [270000 x 5%]	283,500	$0	$0	$216,000 [13500 shares x $ 16]
Dec-01	-	283,500	$0	$141,750 [283500 shares x $ 0.5]	$0
Please Like