Question Details

The following information is available for Blowing Rock 



Ex. 1
During 2014, Red Dragon Corporation had the following transactions and events:
1.	Issued par value preferred stock for cash at par value.
2.	Issued par value common stock for cash at an amount greater than par value.
3.	Completed a 2 for 1 stock split in which the $10 par value common stock was changed to $5 par value stock.
4.	Declared a small stock dividend when the market value was higher than the par value.
5.	Declared a cash dividend.
6.	Made a prior period adjustment for understatement of net income.
7.	Issued par value common stock for cash at par value.
8.	Paid the cash dividend.
9.	Issued the shares of common stock required by the stock dividend declaration in 4. above.
Instructions
Indicate the effect(s) of each of the foregoing items on the subdivisions of stockholders' equity. Present your answers in tabular form with the following columns. Use (I) for increase, (D) for decrease, and (NE) for no effect.
			Paid-in Capital	
		Capital	     Additional	Retained
	Item	 Stock		Paid-in Capital	Earnings


Ex. 2
The following information is available for Blowing Rock Corporation:
Common Stock ($5 par)	$1,600,000
Retained Earnings	1,200,000
A 18% stock dividend is declared and paid when the market value was $16 per share.

Instructions
Compute each of the following after the stock dividend.
(a)	Total stockholders' equity.
(b)	Number of shares outstanding .




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