Vicky Corp. had 500,000 shares of common stock authorized and 410,000 shares outstanding at December 31, 2009. The following events occurred during 2010:
April 1 Declared 5% stock dividend
June 1 Purchased 75,000 shares
Sept. 1 Reissued 25,000 shares
Nov) 1 Declared 2-for-1 stock split
How many shares of common stock did Vicky have outstanding at December 31, 2010?

Question

Quizplus · Accepted Answer

5% stock dividend: 410,000 x 5% = 20,500 sharesPurchase of shares: +75,000 sharesReissuance of shares: -25,000 shares2-for-1 stock split: 410,000 + 20,500 + 75,000 - 25,000 = 480,500 shares x 2 = 961,000 sharesOutstanding shares at December 31, 2010: 961,000 shares