15.Brechner Corporation's charter allows it to sell 400,000 shares of $1 par value common stock. To date the firm has sold 150,000 shares for a total of $1,050,000. Brechner has reacquired 3,000 shares from shareholders at a price of $10 per share. Retained earnings equals $350,000.
a.What total amount of contributed capital should Brechner report?
b.What amount should be reported for the Common Stock account?
c.What was the average selling price of each share of common stock?
d.How many shares of stock are outstanding?
e.What amount should be reported for stockholders' equity?
16.On March 1, Pluto Corporation declared and issued a 10% stock dividend on its 200,000 outstanding shares of $3 par value common stock. On September 1, Pluto declared a 3-for-1 stock split and changed its par value accordingly. The market value of Pluto's stock was $20 per share on March 1 and $24 per share on September 1. On February 28, Pluto's stockholders' equity appeared as follows:
Common stock (200,000 $3 par shares issued)$ 600,000
Paid-in capital in excess of par1,800,000
Contributed capital2,400,000
Retained earnings1,600,000
Total stockholders' equity$4,000,000
Required:
Prepare the stockholders' equity section after the stock split.