Problem 144A On January 1 2017 Ven Corporation had the follo

Problem 14-4A On January 1, 2017, Ven Corporation had the following stockholders\' equity accounts. Common Stock (no par value, 85,000 shares issued and outstanding) Retained Earnings During the year, the following transactions occurred $1,350,000 450,000 Feb. 1 Declared a $1 cash dividend per share to stockholders of record on February 15, payable March 1 Mar. 1 Paid the dividend declared in February. Apr. 1 Announced a 3-for-1 stock split. Prior to the split, the market price per share was $35 July 1 Declared a 4% stock dividend to stockholders of record on July 15, distributable July 31, On July 1, the market price of the stock was $10 per share. Issued the shares for the stock dividend. Declared a $0.30 per share dividend to stockholders of record on December 15, payable January 5, 2018. 31 Dec. 1 31 Determined that net income for the year was $300,000 (Enter account name only and do not provide descriptive information. Round answers to O decimal places, e.g. 5,250.)

Solution

Part (a) VEN CORPORATION Partial Balance sheet Equity section at March 31 , 2017 Stock holders Equity Amount in $       Paid in capital            Capital Stock                       Common Stock , 85000 Shares issued and out standing 1350000                        Additional Paid in capital In excess of Par Value                              Total Paid in capital                       Retained Earnings (450000-85000) 365000                       Total Share Holders Equity 1715000 Part (b) VEN CORPORATION Partial Balance sheet Equity section at June 30 , 2017 Stock holders Equity Amount in $       Paid in capital            Capital Stock                       Common Stock , 255000 Shares issued and out standing (stock split for 3 for 1) 1350000                        Additional Paid in capital In excess of Par Value                              Total Paid in capital                       Retained Earnings 365000                       Total Share Holders Equity 1715000 Part (c ) VEN CORPORATION Partial Balance sheet Equity section at September 30 , 2017 Stock holders Equity Amount in $       Paid in capital            Capital Stock                       Common Stock , 265200 Shares issued and out standing   (1350000+102000) 1452000                        Additional Paid in capital In excess of Par Value                              Total Paid in capital                       Retained Earnings (365000-102000) 263000                       Total Share Holders Equity 1715000 Stock Dividend =255000*4%*$10=$102000 10200 265200 Part (D ) VEN CORPORATION Partial Balance sheet Equity section at December 31 , 2017 Stock holders Equity Amount in $       Paid in capital            Capital Stock                       Common Stock , 265200 Shares issued and out standing 1452000                        Additional Paid in capital In excess of Par Value                              Total Paid in capital                       Retained Earnings (365000-102000) 483440                       Total Share Holders Equity 1935440 Balance in retained Earnings Balance in September 30 2017 263000 Add: Net income 300000 less: Dividend Declared (265200*$0.30 -79560 Ending balncve on december 31, 2017 483440