A company has two classes of stock authorized: 9%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during Year 1, its first year of operations:.
January 2 Issues 100,000 shares of common stock for $29 per share.
February 6 Issues 2,400 shares of 9% preferred stock for $11 per share.
September 10 Purchases 11,000 shares of its own common stock for $34 per share.
December 15 Resells 5,500 shares of treasury stock at $39 per share.
In its first year of operations, the company has net income of $154,000 and pays dividends at the end of the year of $94,500 ($1 per share) on all common shares outstanding and $2,160 on all preferred shares outstanding. Required:
Prepare the stockholders' equity section of the balance sheet for the company as of December 31, Year 1.
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Ответ:
Preferred 9% Stock, $10 par value
(2,400 stocks authorized) $24,000
Paid-in Capital in Excess of Par $2,400 $26,400
Common Stock
(94,500 stocks outstanding) $100,000
Paid-in Capital in Excess of Par $2,827,500 $2,927,500
Total paid in capital $2,953,900
Retained Earnings $59,500
Treasury Stock (5,500 stocks at cost) ($187,000)
Total Stockholders' Equity $2,826,400
Explanation:
Jan. 2 Issued 100,000 shares of common stock for $2,900,000.
Dr Cash 2,900,000
Cr Common stock 100,000
Cr Paid-in capital in excess of par value - common stock 2,800,000
February 6 Issues 2,400 shares of 9% preferred stock for $11 per share.
Dr Cash 26,400
Cr Preferred stock 24,000
Cr Paid-in capital in excess of par value - preferred stock 2,400
September 10 Purchases 11,000 shares of its own common stock for $34 per share.
Dr Treasury stock 374,000
Cr Cash 374,000
December 15 Resells 5,500 shares of treasury stock at $39 per share.
Dr Cash
Cr Treasury stock 187,000
Cr Paid-in capital in excess of par value - common stock 27,500
retained earnings = $154,000 - $94,500 = $59,500
Preferred Stock $24,000
Common Stock $100,000
Paid-in capital in excess of par value - preferred stock $2,400
Paid-in capital in excess of par value - common stock $2,827,500
Retained Earnings $59,500
Treasury Stock $187,000
Ответ:
Awesome. So am I.
Explanation: