Question

Problem 14-03A a-d

On January 1, 2020, Cullumber Corporation had the following stockholders’ equity accounts. Common Stock (no par value, 94,000 shares issued and outstanding) $1,405,000 Retained Earnings 455,000

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 $12 per share. 31 Issued the shares for the stock dividend. Dec. 1 Declared a $0.40 per share dividend to stockholders of record on December 15, payable January 5, 2021. 31 Determined that net income for the year was $323,000.

Prepare the stockholders’ equity section of the balance sheet at March 31.

Prepare the stockholders’ equity section of the balance sheet at June 30.

Prepare the stockholders’ equity section of the balance sheet at September 30.

Prepare the stockholders’ equity section of the balance sheet at December 31, 2020.

Answer 1

Ques 1
Cullumber Corporation
Partial balance sheet
March 31,2020
Stockholders equity
Paid in capital
capital stock
common stock-no par value
94000   shares issued and outstanding	1405000
Retained earnings	361000
(455000-(94000*1))
total stockholders equity		1766000
Ques 2
Cullumber Corporation
Partial balance sheet
June 30,2020
Stockholders equity
Paid in capital
capital stock
common stock-no par value
282000   shares issued and outstanding	1405000
Retained earnings	361000
(from above)
total stockholders equity		1766000
Ques 3
Cullumber Corporation
Partial balance sheet
September 30,2020
Stockholders equity
Paid in capital
capital stock
common stock-no par value
296100   shares issued and outstanding	1574200
Retained earnings	191800
(361000-169200)
total stockholders equity		1766000
stock dividend
no.of shares	282000
stock dividend percentage	5%
stock dividend	14100
so now total shares are	296100
value of stock dividend	169200
296100*12
initial balance	1405000
new balance	1574200
Ques 4
Cullumber Corporation
Partial balance sheet
December 31,2020
Stockholders equity
Paid in capital
capital stock
common stock-no par value
296100   shares issued and outstanding	1574200
Retained earnings	396360
(191800+323000-(0.4*296100)
total stockholders equity		1970560