Question - At the beginning of the year, Albers, Inc., has total stockholders' equity of $840,000 and 40,000 outstanding shares of a single class of capital stock. During the year, the corporation completes the following transactions affecting its stockholders' equity accounts:
Jan. 10 A 5 percent stock dividend is declared and distributed. (Market price, $20 per share.)
Mar. 15 The corporation acquires 2,000 shares of its own capital stock at a cost of $21.00 per share.
May 30 All 2,000 shares of the treasury stock are reissued at a price of $31.50 per share.
July 31 The capital stock is split 2-for-1.
Dec. 15 The board of directors declares a cash dividend of $1.10 per share, payable on January 15.
Dec. 31 Net income of $525,000 is reported for the year ended December 31.
Instructions - Compute the amount of total stockholders' equity, the number of shares of capital stock outstanding, and the book value per share following each successive transaction. Organize your solution as a three-column schedule with these separate column headings: (1) Total Stockholders' Equity, (2) Number of Shares Outstanding, and (3) Book Value per Share.