In Draco Corporation's first year of business, the following transactions affected its equity accounts.

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In Draco Corporations first year of business, the following transactions affected its equity accounts. • Issued 6,800 shares

On June 30, Sharper Corporations stockholders equity section of its balance sheet appears as follows before any stock divid

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Answer 1

Answer #1

Question 1.

Solution:

DRACO CORPORATION Stockholders Equity Section of the Balance Sheet December. 31 Common stock 13,600 Paid-in capital in exces

Question 2.

Solution: There would be no change in the amount columns of stockholders' equity section due to stock split. So updated stockholders' equity section is:

SHARPER CORPORATION Stockholders Equity Section of the Balance Sheet 30-Jun Common stock 780,000 Paid-in capital in excess o

Req. 2. No. of shares outstanding after splits = 78,000*3/1 = 234,000 shares

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Answer 2

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In Draco Corporation's first year of business, the following transactions affected its equity accounts. • Issued...

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