At January 1, 2013, Leblanc Corporation had the following shareholders' equity: On March 12, 2013, when the common shares have a market value of $18, the board of directors declared and paid a 10% common stock dividend. On July 31, 2013, the board declared a 2-for-1 stock split on the common shares. During the year, the company paid cash dividends of $80,000 and reported profit of $435,000.
-The number of common shares issued at December 31, 2013 is
A) 55,000.
B) 2,000,000.
C) 100,000.
D) 110,000.

Question

At January 1, 2013, Leblanc Corporation had the following shareholders' equity:  On March 12, 2013, when the common shares have a market value of $18, the board of directors declared and paid a 10% common stock dividend. On July 31, 2013, the board declared a 2-for-1 stock split on the common shares. During the year, the company paid cash dividends of $80,000 and reported profit of $435,000.
-The number of common shares issued at December 31, 2013 is
A) 55,000. 
B) 2,000,000. 
C) 100,000. 
D) 110,000.

Quizplus · Accepted Answer

The Answer of At January 1, 2013, Leblanc Corporation had the following shareholders' equity:  On March 12, 2013, when the common shares have a market value of $18, the board of directors declared and paid a 10% common stock dividend. On July 31, 2013, the board declared a 2-for-1 stock split on the common shares. During the year, the company paid cash dividends of $80,000 and reported profit of $435,000.
-The number of common shares issued at December 31, 2013 is
A) 55,000. 
B) 2,000,000. 
C) 100,000. 
D) 110,000.

At January 1, 2013, Leblanc Corporation Had the Following Shareholders