See attached worksheets for completion of problems.
Common stock, $4 par value, 500,000 shares authorized,
200,000 shares issued and outstanding $800,000
Additional paid-in capital $1,000,000
Total Paid contributed capital $1,800,000
Retained Earnings $1,200,000
Total stockholder's equity $3,000,000
Pittman Corporation had the following transactions in 20x8:
Feb 28. The board of directors declared a 10 percent stock dividend to stockholders of record on March 25 to be distributed on April 5. The market value on this date is $16.
Mar. 25 Date of record for stock dividend.
Apr. 5 Issued stock dividend
Aug 3. Declared a 2 for 1 stock split
Nov 20 Purchased 18,000 shares of the company's common stock at $8 per share for the treasury.
Dec. 31 Declared a 5 percent stock dividend to stockholders of record on January 25 to be distributed on February 5. The market value per share was $9.
1. Record the stockholder's equity components of the transactions for Pittman Corporation in T accounts.
2. Prepare the stockholder's equity section of the company's balance sheet as of December 31 20x8. Assume net income for 20x8 is $108,000.
This solution is comprised of a detailed explanation to record the stockholder's equity components of the transactions for Pittman Corporation in T accounts.