(10 points) Answ Required: Answer the questions on hh re date specfied by bookle

Question

(10 points) Answ Required: Answer the questions on hh re date specfied by booklet at the beginning of Answer the questions on the following page in this booklet and turn in the entire cl ass on the date specified by your instructor. Shown below is the stockholders' equity section of Tiny Tof's the balance sheet at December 31, 2015 the balance sheet at ohoiders equitsectionof iny Tot's stockholders' equity section of Common stock, $1 par value, 5,000,000 shares authorized, 670,000 shares issued and outstanding Additional paid-in capital Retained earnings $670,000 1,420,000 2.900,000 $4,990000 Total stockholders' equity During 2016, the following events occurred: Tiny Tot's was authorized to sell 100,000 shares of S 100 par, 8% preferred stock A cash dividend of $8 per share was paid to the preferred stockholders Tiny Tot's declared and issued a 10% stock dividend on the common stock when the market value of the stock was $13 per share Net income for the year was $1,740,000 Tiny Tot's sold 15,000 shares of the preferred stock at its par value

Explanation / Answer

Additional capital = 13 -1 par value = 12 additonal

** Common stock = (15000*100)+(737000* 1) +2,224,000+ 3,649,000 = 8110000

Preferred stock as of dec 31 2016 Number of shares authorised 100,000 Number of shares issued and outstanding 15000 common stock as of dec 31 2016 Number of shares authorised 5,000,000 Number of shares issued and outstanding [670000+ (670000*10% stock dividend] = 670000+67000 737,000 Total amount of preferred stock dividend   [15000*100*.08] 120,000 Total debit to stock dividend account   [67000*13] 871000 Additional paid in capital at dec 31 2016 [1,420,000+ (67000*12 )] 2,224,000 RE at jan 1 2016 2,900,000 RE at dec 31 2016   [2,900,000+1,740,000-871,000-120,000] 3,649,000 Total stockholders equity at dec 31 2016 [ 8110000

Related Questions

Navigate

• Browse (All)
• Browse #
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.