Fun City Inc. ended 2013 with 8 million common shares issued and outstanding. The average issue…

Fun City Inc. ended 2013 with 8 million common shares issued and outstanding. The average issue price was $1.50. Beginning retained earnings totalled $40 million. • In March 2014, Fun City issued 2 million common shares at a price of $2 per share. • In May, the company distributed a 10% stock dividend at a time when Fun City’s common shares had a fair value of $3 per share. • Then in October, Fun City’s stock price dropped to $1 per share and the company executed a 1-for-2 stock split. • For the year, Fun City earned net income of $26 million and declared cash dividends of $17 million. Determine what Fun City should report for shareholders’ equity at December 31, 2014. Journal entries are not required. View Solution:
Fun City Inc ended 2013 with 8 million common shares