On January 1, 2010, Carolinas Corporation had the following stockholders’ equity accounts.
|
Common Stock (no par value, 90,000 shares issued and outstanding) |
$1,400,000 |
|
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 4 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 $13 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, 2011. |
|
31 |
Determined that net income for the year was $350,000. |
Instructions
Prepare the stockholders’ equity section of the balance sheet at: (a) March 31, (b) June 30,(c) September 30, and (d) December 31, 2010.