The stockholders' equity section of Augusta, Inc. is as follows:
The market price of the stock on December 31, 2015, 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 balance 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, 2015?

Question

The stockholders' equity section of Augusta, Inc. is as follows:
  The market price of the stock on December 31, 2015, 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 balance 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, 2015?

Quizplus · Accepted Answer

The Answer of The stockholders' equity section of Augusta, Inc. is as follows:
  The market price of the stock on December 31, 2015, 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 balance 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, 2015?

The Stockholders' Equity Section of Augusta, Inc