Question

On January 1, Crane Corporation had 99,000 shares of no-par common stock issued and outstanding. The stock has a stated value of $4 per share. During the year, the following occurred.

Apr.	1		Issued 25,500 additional shares of common stock for $17 per share.
June	15		Declared a cash dividend of $1 per share to stockholders of record on June 30.
July	10		Paid the $1 cash dividend.
Dec.	1		Issued 3,000 additional shares of common stock for $19 per share.
	15		Declared a cash dividend on outstanding shares of $4.00 per share to stockholders of record on December 31.

(a)

Prepare a stockholders’ equity section at December 31, 2020. (Enter the account name only and do not provide the descriptive information provided in the question.)

balance sheet:

Answer 1

Balance in Common Stock Account (99,00025,5003,000) $4 $510,000 Balance in Additional Paid-in Capital-Common Stock Account (25,500 13) + (3,000 15) $376,500 Dividend on June 15 (99,00025,500)* $1 $124,500 Dividend on December 15 (99,000 25,500 +3,000) * $4 $510,000 Total Dividend declared = $124,500 + $510,000 = $634,500 Crane Corporation Balance Sheet (partial) as at December 31, 2020 Stockholders' Equity 510,000 Common Stock Additional Paid-in Capital-Common Stock $ 376,500 $ (634,500) 252,000 Less: Dividends Paid Total Stockholders' Equity

Balance in Common Stock Account (99,000 25,500 3,000) * $4 $510,000 Balance in Additional Paid-in Capital-Common Stock Account (25,500 13)+ (3,000 *15) $376,500 Dividend on June 15 (99,000+25,500) * $1-$124,500 Dividend on December 15 (99,000+25,500+3,000) $4-$510,000 Total Dividend declared = $124,500 + $510,000 = $634,500 Crane Corporation as at December 31, 2020 Stockholders' Equity $ 510,000 Common Stock Additional Paid-in Capital-Common Stock$ 376,500 $ (634,500) $ 252,000 Less: Dividends Paid Total Stockholders' Equity