The ABD Corporation has the following information pertaining to stockholder’s eq
ID: 2392049 • Letter: T
Question
The ABD Corporation has the following information pertaining to stockholder’s equity as of December 31, 20X5:
Common Stock, $1 par, 300,000 sh. authorized, 180,000 shares
Issued and outstanding
$180,000
Paid-in Capital in Excess of Par – Common Stock
450,000
Retained Earnings
1,500,000
REQUIRED:
1. Post the above balances in T accounts shown below.
2. Record the following 20X6 transactions.
3. Record the following first-year transactions in T accounts.
- Issued 40,000 shares of $1.00 par value common stock at a price of $4.00 per share.
- Issued 1,000 shares of 3% Preferred Stock, $100 par value for $105 per share.
- Purchased 12,000 of its own common shares at $3.00 per share.
- Declared and paid a cash dividend of $45,600.
1. Assuming Net Income for 20X6 was $300,000, prepare a stockholder’s equity section of the balance sheet as of December 31, 20X6. Be sure to include the number of Authorized, issued, and outstanding shares.
2. Company management declares a 10% stock dividend when the market price of the stock is $4.25 per share. Record the entry for this dividend. (show calculations)
Common Stock, $1 par, 300,000 sh. authorized, 180,000 shares
Issued and outstanding
$180,000
Paid-in Capital in Excess of Par – Common Stock
450,000
Retained Earnings
1,500,000
Explanation / Answer
Solution 1:
Solution 2:
Solution 3:
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Solution 5:
Common Stock Particulars Debit Particulars Credit By beginning balance $180,000.00Related Questions
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