The Stockholders' Equity Section of Calabro,Inc The Market Price of the Stock on December 31,2017,was $8

question 44

Essay

The Stockholders' Equity section of Calabro,Inc.is as follows: $\begin{array}{lr}\text { Preferred stock, } 7 \%, \$ 10 \text { par, } 1,000 \text { shares authorized, } 300 \text { shares issued } & \$ 3,000 \\\text { Additional paid-in capital—preferred } & 9,000 \\\text { Common stock, } \$ 1 \text { par value, authorized } 15,000 \text { shares, issued 4,000 shares } & 4,000 \\\text { Additional paid-in capital—common } & 20,000 \\\text { Retzined earnings } & 50,000 \\\text { Total contributed capital and retained earnings } & \$ 86,000 \\\text { Less: Treasury stock (1,000 common shares at cost) } & \underline{(6,000)} \\\text { Total stockholders' equity } & \underline{ \$ 80,000} \\\end{array}$

The market price of the stock on December 31,2017,was $8 per share.Answer the following independent questions:

A) Calculate the average amount at which each share of common stock was initially sold.

B) What balance will be in the Retained Earnings account immediately after the declaration of a 2 -for-1 stock split?

C) If a cash dividend of $\$ 1$ per share was declared to both common and preferred stockholders, what would be the bal ance in retained earnings immediately after the declaration?

D) What balance will be in the Retained Earnings account immediately after the declaration of a $20 \%$ common stock dividend on December 31,2017 ?

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Definitions:

Personality Disorder

A type of mental disorder characterized by unhealthy patterns of thinking, functioning, and behaving.

Inner Experience

Refers to the personal, subjective phenomena of an individual's emotional and thought processes.

Outward Behavior

Observable actions or reactions of an individual, as opposed to internal thoughts or feelings.

Odd Cluster

A classification within personality disorders, often referring to a group characterized by eccentric behaviors; includes disorders such as paranoid, schizoid, and schizotypal personality disorders.