At January 1, 2013, Leblanc Corporation had the following shareholders' equity: On March 12, 2013, when the common shares have a market value of $18, the board of directors declared and paid a 10% common stock dividend. On July 31, 2013, the board declared a 2-for-1 stock split on the common shares. During the year, the company paid cash dividends of $80,000 and reported profit of $435,000.
-At its December 31 year end, the balance in share capital is
A) $910,000.
B) $1,000,000.
C) $1,800,000.
D) $2,000,000.

Question

At January 1, 2013, Leblanc Corporation had the following shareholders' equity:  On March 12, 2013, when the common shares have a market value of $18, the board of directors declared and paid a 10% common stock dividend. On July 31, 2013, the board declared a 2-for-1 stock split on the common shares. During the year, the company paid cash dividends of $80,000 and reported profit of $435,000.
-At its December 31 year end, the balance in share capital is
A) $910,000. 
B) $1,000,000. 
C) $1,800,000. 
D) $2,000,000.

Quizplus · Accepted Answer

The correct answer is based on the information provided in the question, which seems to be missing. However, in a typical scenario, the balance in share capital would be determined by the total value of shares issued by the company. Without additional details, such as the number of shares issued and the price per share, it's not possible to calculate or confirm the correct balance. The choice B) $1,000,000 is selected as a placeholder due to the lack of context.

At January 1, 2013, Leblanc Corporation Had the Following Shareholders