Stock dividend and treasury stock
At the beginning of the current year,King Cole,Inc.had 300,000 shares of capital stock outstanding and total stockholders' equity of $1,200,000.During the year,the company earned net income of $325,000,declared cash dividends of $150,000,distributed a 5% stock dividend of 15,000 shares when the market price of the stock was $16 per share,and purchased 3,000 shares of treasury stock at a cost of $13 per share.Compute the following at the end of the current year:
(a)Total stockholders' equity:
(b)Number of shares of stock outstanding:
(c)Book value per share:

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The Answer of Stock dividend and treasury stock
At the beginning of the current year,King Cole,Inc.had 300,000 shares of capital stock outstanding and total stockholders' equity of $1,200,000.During the year,the company earned net income of $325,000,declared cash dividends of $150,000,distributed a 5% stock dividend of 15,000 shares when the market price of the stock was $16 per share,and purchased 3,000 shares of treasury stock at a cost of $13 per share.Compute the following at the end of the current year:
(a)Total stockholders' equity:
(b)Number of shares of stock outstanding:
(c)Book value per share:

Stock Dividend and Treasury Stock