Question 8
Id Jit Company's Common 60,000 Shareholders' stock Equity section of the balance sheet on December 31, 2015, was as follows:

Common Stock
   60,000 no par shares issues and outstanding    $1,080,000
Retained earnings                                                       1,240,000
   Total shareholders' equity                                  $2,320,000

Then January on March 4, 2016, 30, 2016, Id Jit declared and issued a 10% stock dividend, when the shares were selling for $20 per share.
Then on March 30, 2016, it declared and issued a 2-for-1 stock split.

Required
1. How many shares are outstanding at year-end?
3. Shareholders' Equity category of Id Jit's balance sheet as of account? December 31, 2016.
Develop What is the the book value per share of these shares in the Common Stock

Question 9
The following transactions occurred at Heckton Inc. during its first year of operation:
A. Issued 10,000 common shares at $10 each; 100,000 shares are authorized at no par value.
B. Issued 10,000 common shares to acquire for a patent, which is expected to be effective for the next 15 years. The value of the patent is undeterminable The shares are selling for $10 on the open market.
C. Purchased 1,000 of its own common shares on the open market for $10 per share.
D. Declared a dividend of $0.50 per share of outstanding common stock The dividend is to be paid after the end of the first year of operations. Market value of the shares is $10.
E. Income for the year is reported as $340,000.

Required
1. Indicate each transaction's effect on the assets, liabilities, and owners' equity of Heckton Inc.
2. Heckton's president has asked you to explain the difference between contributed capital and retained earnings. Discuss these terms as they relate to Heckton.
3. Determine the book value per share at the end of the year.

Question 8 Id Jit Company's Common 60,000 Shareholders' stock Equi...