Question

Problem 14-03A a-d On January 1, 2020, Carla Vista Corporation had the following stockholders' equity accounts. Common Stock (no par value, 85,000 shares issued and outstanding) Retained Earnings $1,375,000 541,000 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 $40. July 1 Declared a 6% stock dividend to stockholders of record on July 15, distributable July 31. On July 1, the market price of the stock was $10 per share. 31 Issued the shares for the stock dividend. Dec. 1 Declared a $0.50 per share dividend to stockholders of record on December 15, payable January 5, 2021. 31 Determined that net income for the year was $399,000.

Answer 1

Part A

CARLA VISTA CORPORATION Partial Balance Sheet March 31, 2020
Stockholders' Equity
Paid-in Capital
Capital Stock
Common Stock	1375000
Retained Earning	456000
Total Stockholders' Equity	$1831000

541000-(85000*1) = 456000

Part B

CARLA VISTA CORPORATION Partial Balance Sheet June 30, 2020
Stockholders' Equity
Paid-in Capital
Capital Stock
Common Stock	1375000
Retained Earning	456000
Total Stockholders' Equity	$1831000

Part C

CARLA VISTA CORPORATION Partial Balance Sheet September 30, 2020
Stockholders' Equity
Paid-in Capital
Capital Stock
Common Stock	1528000
Retained Earning	303000
Total Stockholders' Equity	$1831000

1375000+((85000*3)*6%*10)) = 1375000+153000 = 1528000

456000-153000

Part D

CARLA VISTA CORPORATION Partial Balance Sheet December 31, 2020
Stockholders' Equity
Paid-in Capital
Capital Stock
Common Stock	1528000
Retained Earning	566850
Total Stockholders' Equity	$2094850

1375000+((85000*3)*6%*10)) = 1375000+153000 = 1528000

((85000*3)+(85000*3*6%)) = 270300

303000+399000-(0.50*270300)