liüh Stock ,$22 par, 500,000 shares authorized 32,000 shares il outstanding uldt

Question

liüh Stock ,$22 par, 500,000 shares authorized 32,000 shares il outstanding uldtive, 10,000 shares authorized $525,000 ed d-in capital in excess of par preferred stock d-in capital in excess of ained Earnings al Shareholder Equity 704,000 125,000 396,000 $2,250,000 $4,000,000 par common stock tollowing transactions related to shareholder equity occurred during 3Issued 10,000 shares of common stock for $32 per share Acquired a machin common stock Declared a 11.5 $32 t 22 % stock dividend on all common stock outstanding, the market price was 750 shares of common stock as treasury stock at $27 per share Acquired Income of $800,000 was reported and $387,344 cash dividends were also paid during the year uired: Prepare the Shareholder Equity section as of 12/31/2017 to reflect the transactions above. ferred Stock 800, $70 par, 10,000 shares authorized 7,500 shares ued and outstanding mmon Stock, $22 par, 500,000 shares authorized 49283 res issued d-in capital in excess of par common stock tained Earnings asury Stock (750 shares) al Shareholder Equity al common stock shares issued d- in capital in excess of par preferred stock al common stock shares issued and outstanding nings Per Share

Explanation / Answer

Stockholder's equity section Preferred stock 8%,$70 par,10000 shares authorised, 7500 shares issued and outstanding 525000 Common stock,$22 par,500000 shares authorised, 49283 shares issued (49283*22) (Note:1) 1084226 Paid-in-capital in excess of par,preferred stock 125000 Paid-in-capital in excess of par,common stock (Note:2) 564430 Retained earnings (Note:3) 2500000 Treasury stock (750*27) -20250 Total shareholder's equity 4778406 Total common stock shares issued 49283 Total common stock shares issued and outstanding (49283-750) 48533 Earnings per share (Note:4) 15.62 Notes: 1. Number of common stock Beginning balance 32000 Add:Issued for cash 10000 Issued for machine 2200 44200 Stock dividend @ 11.5% on above 5083 Ending balance 49283 2.Paid in capital in excess of par-Common stock Beginning balance 396000 Add:Issued for cash 10000*(32-22) 100000 Issued for machine 66000-(2200*22) 17600 Stock dividend 5083*(32-22) 50830 Ending balance 564430 3.Retained earnings account Beginning balance 2250000 Add:Net income 800000 3050000 Less: stock dividend 5083*32 162656 Cash dividend 387344 550000 Ending balance 2500000 4.Earnings per share=Earnings available to equity shareholders/Common stock outstanding Earnings available to equity shareholders=Net income-Preferred dividend=800000-(525000*8%)=800000-42000=758000 Earnings per share=758000/48533=$15.62 per share

Related Questions

Navigate

• Browse (All)
• Browse L
• Subjects

---

---

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