Question

Accounting for Share Transactions The Mayfair Corporation went public on January 1, 2015, with an initial...

Accounting for Share Transactions
The Mayfair Corporation went public on January 1, 2015, with an initial public offering of 10,000,000 common shares, $1 par value, at a market price of $3 per share.

Since then, the following equity transactions had occurred:

In 2016, a 10% stock dividend was issued. At the time, the Mayfair common shares were trading at $6 per share.

In 2017, a 3-for-1 forward stock split was executed. At the time, the Mayfair common shares were trading at $12 per share.

In 2018, 500,000 common shares were repurchased on the open market at a price of $15 per share.

On December 31, 2018, the company declared and paid its first cash dividend of $0.1 per share on all outstanding common shares.

1. Calculate the par value per share and the number of shares outstanding for the Mayfair Corporation on December 31, 2018.

Dec 31, 2018 shares outstanding and par value? Rounded to 2 decimal places.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Ans. Calculation of total no of share outstanding for the mayfair corporation on dec31 2018

Jan 01 2015 Initial Public offer                 :    10000000

Share after stock split 3 for 1 (10000000X3) : 30000000

Less: Repurchase from Open market          : 500000

Oustanding share in Dec 31 2018            : 29500000

Calculation of Par value of share

Initial offer value @1 each share

Par value after stock split is (1/3) = $0.33 per share

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The Mayfair Corporation went public on January 1, 2015, with an initial public offering of 10,000,000...
The Mayfair Corporation went public on January 1, 2015, with an initial public offering of 10,000,000 common shares, $1 par value, at a market price of $3 per share. Since then, the following equity transactions had occurred: In 2016, a 10% stock dividend was issued. At the time, the Mayfair common shares were trading at $6 per share. In 2017, a 3-for-1 forward stock split was executed. At the time, the Mayfair common shares were trading at $12 per share....
Equity Method On January 1, 2014, The Miller Corporation purchased 300,000 shares of The Mayfair Corporation...
Equity Method On January 1, 2014, The Miller Corporation purchased 300,000 shares of The Mayfair Corporation for $5.7 million. The investment represented 25 percent of The Mayfair Corporation’s outstanding common shares. During 2014, Mayfair reported net earnings of $2.25 million and paid a cash dividend of $0.15 per share. During 2015, Mayfair reported a net loss of $180,000 and again paid a dividend of $0.15 per share. Calculate the book value of Miller’s investment in Mayfair as of December 31,...
DEF Corporation has the following share capital and retained earnings balances at December 31, 2018.                          &nb
DEF Corporation has the following share capital and retained earnings balances at December 31, 2018.                                                                                Issued share capital                       2,000,000 common shares                 $ 10,000,000                        Retained earnings                                   90,000,000                                                                        $ 100,000,000 i)If a 5% stock dividend is issued when the shares are trading for $ 10 per share, prepare the journal entry to record the stock dividend ii)If a 2 for 1 stock split is announced, prepare the journal entry to record the stock split. iii)If DEF...
Orange Office Supply Corporation completed the following stock issuance transactions: January 2, 2018 Issued 5,000 shares...
Orange Office Supply Corporation completed the following stock issuance transactions: January 2, 2018 Issued 5,000 shares of $4 stated value common stock for cash of $20 per share January 31, 2018 Received merchandise inventory with a market value of $46,000 in exchange for 2,000 shares of the $4 stated value common stock when the market price was $22. March 1, 2018 Issued 450 shares of 5%, $20 par value, cumulative, preferred stock for $50 per share July 1, 2019 Board...
Part C On October 1, 2018, Nicklaus Corporation receives permission to replace its $1 par value...
Part C On October 1, 2018, Nicklaus Corporation receives permission to replace its $1 par value common stock (5,000,000 shares authorized, 3,000,000 shares issued, and 2,900,000 shares outstanding) with a new common stock issue having a $.50 par value. Since the new par value is one-half the amount of the old, this represents a 2-for-1 stock split. That is, the shareholders will receive two shares of the $.50 par stock in exchange for each share of the $1 par stock...
Carp Corporation is authorized to issue 2,000,000 shares of $1 par value common stock. During 2018,...
Carp Corporation is authorized to issue 2,000,000 shares of $1 par value common stock. During 2018, the company has the stock transactions listed below. Journalize the transactions for Carp Corporation in spaces provided below. Jan. 15 Issued 700,000 shares of stock at $7 per share. Sept. 5 Purchased 20,000 shares of common stock for the treasury at $8 per share. Dec. 6 Declared a $0.50 per share dividend to the remaining stockholders of record on December 20, payable January 3,...
This is intermediate accounting question about Stockholder's Equity (chp15) On January 1, 2015, Kelsey issued 600,000...
This is intermediate accounting question about Stockholder's Equity (chp15) On January 1, 2015, Kelsey issued 600,000 of its $10 par value, 6% preferred stock for $20 per share. Kelsey incurred and paid stock issuance costs of $150,000. Each share of Kelsey’s preferred stock can be converted into 3 shares of Kelsey’s $1 par value common stock. On August 15, 2015, when 1 share of Kelsey’s common stock was trading for $10 per share, 300,000 shares of the preferred stock were...
Record each of the transactions. Keep a running balance of the average per share amount of...
Record each of the transactions. Keep a running balance of the average per share amount of the common shares. On January 1, 2017, Hum Enterprises Inc. had 64,000 common shares, recorded at $512,000. The company follows IFRS. During the year, the following transactions occurred: Apr. 1 Issued 5,000 common shares at $10 per share. June 15 Declared a 5% stock dividend to shareholders of record on September 5, distributable on September 20. The shares were trading for $12 a share...
On January 1, 2018, Walker Corporation had the following account balances: Common stock, $1 par, 250,000...
On January 1, 2018, Walker Corporation had the following account balances: Common stock, $1 par, 250,000 shares issues 250,000 Paid-in-capital - excess of par, common 500,000 Preferred stock, $100 par, 10,000 shares outstanding 1,000,000 Paid-in-capital - excess of par, preferred 100,000 Retained Earnings 2,000,000 Treasury stock, at cost, 5,000 shares 25,000 During 2018, the following transactions occurred relating to common stock: 1/15/18 - Declared a property dividend of 100,000 shares of Wagner Company (book value $10 per share; fair value...
Tran Corporation was organized on January 1, 2018, with 100,000 authorized shares of $10 par value...
Tran Corporation was organized on January 1, 2018, with 100,000 authorized shares of $10 par value common stock. During 2018, Tran had the following transactions affecting stockholders' equity: January 7—Issued 40,000 shares at a market value of $12 per share December 2—Purchased 6,000 shares of treasury stock at $13 per share Tran's net income for 2018 is $300,000. What is the amount of stockholders' equity on December 31, 2018?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT