| On March 1, Pluto Corporation declared and issued a 10% stock dividend on its 200,000 | |||||||||
| outstanding shares of $3 par value common stock. On September 1, Pluto declared a 3 for 1 | |||||||||
| stock slit and changed its par value accordingly. The market value of Pluto’s stock was $20 | |||||||||
| per share on March 1 and $24 per share on September 1. On February 28, Pluto’s stockholders’ | |||||||||
| equity appeared as follows: | |||||||||
| Stockholders Equity February 28: | |||||||||
| Common stock (200,000 $3 par shares issued | $600,000 | ||||||||
| Paid in capital in excess of par | 1,800,000 | ||||||||
| Contributed capital | 2,400,000 | ||||||||
| Retained earnings | 1,600,000 | ||||||||
| Total Stockholders’ equity | $4,000,000 | ||||||||
| Required: | |||||||||
| In the space below prepare, in good form, the stockholders’ equity section after the stock split. | |||||||||
| No partial credit will be awarded without detailed computations. | |||||||||
+1(438) 230-5325
support@ibeehomeworksolutions.com
