par noncumulative, 5,000 shares authorized) Stock ($10 stated value, 800.000 shares authorized pital in Excess of Par-Preferred Stock spital in Excess of Stated Value-Common Stock Earnings $350,000 1,400,000 50.000 800,000 740.000
Q: Total cost Labor cost Labor hours Wage rate per 1,000 papers Standard variable cost of processing…
A: Variance analysis is the assessment of differences between actual and expected or intended behavior…
Q: Windsor, Inc. reports the following liabilities (in thousands) on its December 31, 2025, balance…
A: BALANCE SHEETThe balance sheet is one of the important financial statements of a company. Balance…
Q: ACC298 Timed Practice Problem 1: Delish Company issued $500,000, 10%, 5-year bonds on January 1,…
A: Journal Entry :— It is an act of recording transactions in books of account when transaction…
Q: A local store, Waterway, has sold out of its signature item, the classic rocking chair, for the past…
A: A Standard Cost Card is a detailed record or document that provides a breakdown of the standard…
Q: A granary allocates the cost of unprocessed wheat to the production of feed, flour, and starch. For…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Required: 1. What will be the effect of the lease on Café Med's earnings for the first year (ignore…
A: A lease is defined as a contractual agreement incorporated between two business entities where one…
Q: On February 20, services valued at $60,000 relating to the organization of a corporation were…
A: The journal entries are prepared to record the transactions on regular basis. The cash received in…
Q: The following production data were taken from the records of the finishing department for June: Line…
A: FIFO METHOD :— Under this method, equivalent units are calculated by adding equivalent units in…
Q: The following financial information about the manufacturing plant of Continental Company for the…
A: Inventory refers to all the items, raw materials, and merchandise that are used by the business…
Q: The bookkeeper for Adams's Country Music Bar left this incomplete balance sheet. Adams's working…
A: Balance Sheet is a financial statement that includes assets, liabilities and stockholder's…
Q: BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 paid to its…
A: Taxes on Social Security:The Federal Insurance Contributions Act (FICA) mandates a payroll tax and…
Q: Last year, Cayman Corporation had sales of $7 million, total variable costs of $2 million, and total…
A: Variable costs are costs which changes with change in activity level. Fixed costs do not change with…
Q: Matusek Corporation has been experiencing a higher than expected number of warranty claims in the…
A: Changes in the amount of expected warranty obligation is the change in accounting estimates as per…
Q: With regard to accounts payable: Explain (including computations) the rationale of taking a cash…
A: Discount Terms (4/8, n/30):4/8 means a 4% cash discount is offered if payment is made within 8 days,…
Q: Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost…
A: Revenue and spending variance is the difference between actual results and flexible budget data.…
Q: # 1a 1b Date 11/1/2023 11/2/2023 Account Titles and Explanations Merchandise Inventory Cash $2,500…
A: The cost of purchased inventory includes the in-transit insurance cost and freight paid under the…
Q: A company takes out a six-year, $410,000 long-term loan on March 1. The interest rate on the loan is…
A: The process of raising money or capital to support investment or commercial ventures is referred to…
Q: LaMont works for a company in downtown Chicago. The company encourages employees to use public…
A: Answer:- Transit pass benefits refer to a type of employee benefit where employers provide their…
Q: Baird Publications established the following standard price and costs for a hardcover picture book…
A: The variance is the difference between the actual result and the company's standard result.…
Q: 2. Prepare a horizontal analysis for 2025 using 2024 as the base year. (Note: If the percentage…
A: HORIZONTAL ANALYSISHorizontal Analysis is one of the Important analysis techniques of financial…
Q: Accounting for Treasury Stock Big Ben Corporation provides travel planning services for large…
A: When the company repurchases its own shares, the cost is deducted from the equity section of the…
Q: Place a check mark in the column that indicates the location of each item that would be found on a…
A: The following locations will be used for the adjustments, assuming Cash ledger as base of bank…
Q: Alyeska Services Company, a division of a major oil company, provides various services to the…
A: Margin is calculated by dividing net operating income by sales revenue. Turnover is calculated by…
Q: The following data were taken from the balance sheet accounts of Tamarisk Corporation on December…
A: Journal entries The entries which are recorded by the company in the accounting books on regular…
Q: Year Wildhorse Industries has the following patents on its December 31, 2024, balance sheet. 2026…
A: An intangible asset is a nonphysical asset such as a patent, copyright, or goodwill. The company…
Q: Rosa contributes $50,000 to a business entity in exchange for a 10% ownership interest. Rosa…
A: It is an agreement between two or more parties to conduct the business and share the profits and…
Q: The following data were drawn from the records of Fanning Corporation. Planned volume for year…
A: The term "variance" describes the discrepancy between an actual and an expected outcome. Variance…
Q: REQUIRED Calculate Mary's earnings for 31 October 2023 using the straight piecework wage incentive…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Pharoah Factory provides a 2-year warranty with one of its products which was first sold in 2025.…
A: The business entities enter the commercial transactions into the journal to keep track of them. To…
Q: Entries for uncollectible accounts, using direct write-off method Journalize the following…
A: The journal entries are prepared to record the transactions on regular basis. The adjustment entries…
Q: Solomon Company's income statement information follows: Net sales Income before interest and taxes…
A: The ratio is the technique used by the prospective investor or an individual or strategist to read…
Q: Stan Aiken changed employers during the current year and, as a result of the change, moved 150…
A: Moving expenses refer to the costs incurred when an individual relocates their residence due to a…
Q: Calculate the amount of the annual rental payment. (Round answer to 0 decimal places, e.g. 5,275.)…
A: A lease is an agreement between two parties where the owner of the asset known as the lessor…
Q: Shimmer Incorporated is a calendar-year-end, accrual-method corporation. This year, it sells the…
A: In simple terms, "taxable" means that a part of income or property is liable to government taxes. It…
Q: Chilton Day School allocates marketing and administrative costs to its three schools on the basis of…
A: Lets understand the basics.Cost allocation refers to assigning the cost. Cost can be assigned using…
Q: 17 Pretzelmania, Incorporated, issues 5%, 20-year bonds with a face amount of $65,000 for $73,891 on…
A: Journal Entry :— It is an act of recording transactions in books of account when transaction…
Q: Megabyte Inc. of France and R Ltd. of India are associated enterprises. R Ltd. imports 3,000…
A: It is the price at which both the willing buyer and an willing unrelate seller are agreed to…
Q: BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 paid to its…
A: The payments and bonuses that employees receive in addition to their normal income or salaries are…
Q: Employees' Names Hellen Craig Joseph Lim Dino Patelli Sharleen McFee. Employee Hellen Craig Joseph…
A: Gross pay refers to the salary and wages of an employee which includes all the earnings such as…
Q: DLW Corp. is a CCPC. DLW is associated with another corporation and has been allocated 80% of the…
A: As per Canadian Taxation rules, Refundable Portion of Part I Tax applies only to CCPC’s. Refundable…
Q: e tota
A: The total manufacturing costs for each job is sum of direct material , direct labour and…
Q: Kolinski Surgical Hospital uses the direct method to allocate service department costs to operating…
A: Direct methodDirect method allocation is one of the techniques for allocating the service cost to…
Q: No A The partnership of Ace, Jack, and Spade has been in business for 25 years. On December 31,…
A: Journal entries are the primary reporting of the business transactions in the books of accounts.…
Q: Skysong Company exchanged equipment used in its manufacturing operations plus $3,360 in cash for…
A: "Exchange lacks commercial substance" refers to a situation in which an exchange of similar…
Q: REQUIRED Calculate the following from the information provided below: 3.1.1 Break-even value using…
A: The break-even sales are calculated as the fixed costs divided by the contribution margin ratio. The…
Q: The following income statement and additional year-end information is provided. SONAD COMPANY Income…
A: Cash flows from operating activities include the cash outflows and inflows from the operations of…
Q: On January 1, 2019, the Okanagan Flight Institute, which reports its financial results in accordance…
A: A lease is defined as a contractual agreement incorporated between two business entities where one…
Q: Shamrock Service Corporation's December 31, 2025 balance sheet reported the following: 3% preferred…
A: Common stock and Preferred stock are two type of shares being issued and held by the business.…
Q: Prepare journal entries to record the following transactions of a nonprofit hospital, with expense…
A: Journal entries to record the transactions are given below:
Q: Current Attempt in Prog
A: In Units of Production method, the annaul depreciation expense is calculated by multiplying the…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Anoka Company reported the following selected items in the shareholders equity section of its balance sheet on December 31, 2019, and 2020: In addition, it listed the following selected pretax items as a December 31, 2019 and 2020: The preferred shares were outstanding during all of 2019 and 2020; annual dividends were declared and paid in each year. During 2019, 2,000 common shares were sold for cash on October 4. During 2020, a 20% stock dividend was declared and issued in early May. At the end of 2019 and 2020, the common stock was selling for 25.75 and 32.20, respectively. The company is subject to a 30% income tax rate. Required: 1. Prepare the comparative 2019 and 2020 income statements (multiple-step), and the related note that would appear in Anokas 2020 annual report. 2. Next Level Compute the price/earnings ratio for 2020. How does this compare to 2019? Why is it different?Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 20 par common stock at 30, receiving cash. b. Issued 4, 000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 37 5. The bonds are classified as a held-to-maturity long -term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0 .60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 45, including commission. p. Recorded the payment of semiannual interest on the bonds issue d in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method . q. Accrued interest for three months on the Dream Inc. bonds purchased in (I). r. Pinkberry Co. recorded total earnings of 240 ,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39. 02 per share on December 31, 2016. The investment is adjusted to fair value , using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments h ad a beginning balance of zero. Instructions 1. Journalize the selected transactions. 2. After all of the transaction s for the year ended December 31, 201 6, had been poste d [including the transactions recorded in part (1) and all adjusting entries), the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step in come statement for the year ended December 31, 201 6, concluding with earnings per share . In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. ( Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 20 6. c. Prepare a balance sheet in report form as of December 31, 2016.Outstanding Stock Lars Corporation shows the following information in the stockholders equity section of its balance sheet: The par value of common stock is S5, and the total balance in the Common Stock account is $225,000. There are 13,000 shares of treasury stock. Required: What is the number of shares outstanding? Use the following information for Exercises 10-58 and 10-59: Stahl Company was incorporated as a new business on January 1, 2019. The company is authorized to issue 600,000 shares of $2 par value common stock and 80,000 shares of 6%, S20 par value, cumulative preferred stock. On January 1, 2019, the company issued 75,000 shares of common stock for $15 per share and 5,000 shares of preferred stock for $25 per share. Net income for the year ended December 31, 2019, was $500,000.
- Calculating the Number of Shares Issued Castalia Inc. issued shares of its $0.80 par value common stock on September 4, 2019, for $8 per share. The Additional Paid-In Capital-Common Stock account was credited for 5612,000 in the journal entry to record this transaction. Required: How many shares were issued on September 4, 2019?Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. Open the file STOCKEQ from the website for this book at cengagebrain.com. Enter the formulas in the appropriate cells on the worksheet. Then fill in the columns to show the effect of each of the selected transactions and events listed earlier. Enter your name in cell A1. Save the completed worksheet as STOCKEQ2. Print the worksheet. Also print your formulas. Check figure: Total stockholders equity balance at 12/31/12 (cell G21). 398,800.Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. In the space provided below, prepare the stockholders equity section of Chen Corporations balance sheet as of December 31, 2012. Use proper headings and provide full disclosure of all appropriate information. Chens corporate charter authorizes the issuance of 1,000 shares of preferred stock and 100,000 shares of common stock.
- Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 0 par common stock at 0, receiving cash. b. Issued 4,000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 375. The bonds are classified as a held- to-maturitv long-term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0.60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 545, including commission. p. Recorded the payment of semiannual interest on the bonds issued in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method, q. Accrued interest for three months on the Dream Inc. bonds purchased in (1). r. Pinkberry Co. recorded total earnings of 240,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39.02 per share on December 31, 2016. The investment is adjusted to fair value, using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments had a beginning balance of zero. Instructions Journalize the selected transactions. After all of the transactions for the year ended December 31, 2016, had been posted [including the transactions recorded in part (1) and all adjusting entries], the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step income statement for the year ended December 31, 2016, concluding with earnings per share. In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. (Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 2016. c. Prepare a balance sheet in report form as of December 31, 2016. Income statement data: Advertising expense 150,000 Cost of merchandise sold 3,700,000 Delivery expense 30,000 Depreciation expense -office buildings and equipment 30,000 Depreciation expensestore buildings and equipment 100,000 Dividend revenue 4,500 Gain on sale of investment 4,980 Income from Pinkberry Co. investment 76,800 Income tax expense 140,500 Interest expense 21,000 Interest revenue 2,720 Miscellaneous administrative expense 7.500 Miscellaneous selling expense 14,000 Office rent expense 50,000 Office salaries expense 170,000 Office supplies expense 10,000 Sales 5,254,000 Sales commissions 185,000 Sales salaries expense 385,000 Store supplies expense 21,000 Retained earnings and balance sheet data: Accounts payable 194,300 Accounts receivable 545,000 Accumulated depreciationoffice buildings and equipment 1,580,000 Accumulated depreciationstore buildings and equipment 4,126,000 Allowance for doubtful accounts 8,450 Available for sale investments (at cost) 260,130 Bonds payable. 5%. due 2024 500,000 Cash 246,000 Common stock, 20 par (400,000 shares authorized; 100,000 shares issued. 94,600 outstanding) 2,000,000 Dividends: Cash dividends for common stock 155,120 Cash dividends for preferred stock 100,000 Goodwill 500,000 Income tax payable 44,000 Interest receivable 1,125 Investment in Pinkberry Co. stock (equity method) 1,009,300 Investment in Dream Inc. bonds (long term) 90,000 Merchandise inventory [December 31, 2016). at lower of cost (FIFO) or market 778,000 Office buildings and equipment 4.320,000 Paid-in capital from sale of treasury stock 13,000 Excess of issue price over parcommon stock 886,800 Excess of issue price over parpreferred stock 150,000 Preferred 5% stock. 80 par (30,000 shares authorized; 20,000 shares issued] 1,600,000 Premium on bonds payable 19,000 Prepaid expenses 27,400 Retained earnings, January 1, 2016 9,319,725 Store buildings and equipment 12,560,000 Treasury stock (5,400 shares of common stock at cost of 33 per share) 178,200 Unrealized gain (loss) on available for sale investments (6,500) Valuation allowance for available for sale investments (6,500)Lyon Company shows the following condensed income statement information for the year ended December 31, 2019: Lyon declared dividends of 6,000 on preferred stock and 17,280 on common stock. At the beginning of 2019, 10,000 shares of common stock were outstanding. On May 1, 2019, the company issued 2,000 additional common shares, and on October 31, 2019, it issued a 20% stock dividend on its common stock. The preferred stock is not convertible. Required: 1. Compute the 2019 basic earnings per share. 2. Show the 2019 income statement disclosure of basic earnings per share. 3. Draft a related note to accompany the 2019 financial statements.Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements.
- Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 20 par common stock at 30, receiving cash. b. Issued 4,000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 375. The bonds are classified as a heldtomaturity long-term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0.60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 45, including commission. p. Recorded the payment of semiannual interest on the bonds issued in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method. q. Accrued interest for three months on the Dream Inc. bonds purchased in (l). r. Pinkberry Co. recorded total earnings of 240,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39.02 per share on December 31, 2016. The investment is adjusted to fair value, using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments had a beginning balance of zero. Instructions 1. Journalize the selected transactions. 2. After all of the transactions for the year ended December 31, 2016, had been posted [including the transactions recorded in part (1) and all adjusting entries], the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step income statement for the year ended December 31, 2016, concluding with earnings per share. In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. (Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 2016. c. Prepare a balance sheet in report form as of December 31, 2016.Calculating the Number of Shares Issued Castanet Inc. issued shares of its $1. 50 par value common stock on November 9,2019, for $13 per share. In recording the issuance of the stock, Castanet credited the Additional Paid-In Capital- Common Stock account for $416,300. Required: How many shares were issued on November 9, 2019?Cash dividends on the 10 par value common stock of Garrett Company were as follows: The 4th-quarter cash dividend was declared on December 21, 2019, to shareholders of record on December 31, 2019. Payment of the 4th-quarter cash dividend was made on January 18, 2020. In addition, Garrett declared a 5% stock dividend on its 10 par value common stock on December 3, 2019, when there were 300,000 shares issued and outstanding and the market value of the common stock was 20 per share. The shares were issued on December 24, 2019. What was the effect on Garretts shareholders equity accounts as a result of the preceding transactions?