Question

Problem 14-03A a-d On January 1, 2020, Crane Corporation had the following stockholders' equity accounts. Common Stock (no par value, 87,000 shares issued and outstanding) Retained Earnings $1,385,000 544,000 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 5% 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 $0.90 per share dividend to stockholders of record on December 15, payable January 5, 2021. 31 Determined that net income for the year was $393,000.

Answer 1

September 30, 2020
Stockholders Equity
Paid in Capital
Capital Stock
Common Stock	$        1,515,500	=1385000+(87000*3)*5%*10
Retained Earnings	$            326,500	=457000-(87000*3)*5%*10
Total Stockholders Equity	$        1,842,000

December 31, 2020
Stockholders Equity
Paid in Capital
Capital Stock
Common Stock	$        1,515,500
Retained Earnings	$            472,855	=326500-87000*3*1.05*0.9+393000
Total Stockholders Equity	$        1,988,355