Assume that Cosmo Company's Stockholders' Equity category of the balance sheet appears as follows as of
December 31, 2015:
On May 1, 2016, Cosmo declared and issued a 15% stock dividend, when the stock was selling for $20 per share. Then on November 1, it declared and issued a 2-for-1 stock split.
REQUIRED:
1. How many shares of stock are outstanding at year-end?
2. What is the par value per share of these shares?
3. Develop the Stockholders' Equity category of Cosmo's balance sheet as of December 31, 2016.

Question

Assume that Cosmo Company's Stockholders' Equity category of the balance sheet appears as follows as of
December 31, 2015:
  On May 1, 2016, Cosmo declared and issued a 15% stock dividend, when the stock was selling for $20 per share. Then on November 1, it declared and issued a 2-for-1 stock split.
REQUIRED:
1. How many shares of stock are outstanding at year-end?
2. What is the par value per share of these shares?
3. Develop the Stockholders' Equity category of Cosmo's balance sheet as of December 31, 2016.

Quizplus · Accepted Answer

The Answer of Assume that Cosmo Company's Stockholders' Equity category of the balance sheet appears as follows as of
December 31, 2015:
  On May 1, 2016, Cosmo declared and issued a 15% stock dividend, when the stock was selling for $20 per share. Then on November 1, it declared and issued a 2-for-1 stock split.
REQUIRED:
1. How many shares of stock are outstanding at year-end?
2. What is the par value per share of these shares?
3. Develop the Stockholders' Equity category of Cosmo's balance sheet as of December 31, 2016.

Assume That Cosmo Company's Stockholders' Equity Category of the Balance