Hansaben Required informationProblem 10-2B (Algo) Record equity transactions andindicate the effect on the balance sheet equation (LO10-2,10-3, 10-4, 10-5)[The following information applies to the questions displayed below.]Nautical has two classes of stock authorized: $10 par preferred, and $1par value common. As of the beginning of 2024, 100 shares ofpreferred stock and 2,000 shares of common stock have been issued.The following transactions affect stockholders' equity during 2024:March 1April 1June 1June 30August 1Issue 2,000 additional shares of common stock for$15 per share.Issue 200 additional shares of preferred stock for$30 per share.Declare a cash dividend on both common and preferredstock of $0.50 per share to all stockholders ofrecord on June 15.Pay the cash dividends declared on June 1.Purchase 200 shares of common treasury stock for $12per share.October 1 Reissue 100 shares of treasury stock purchased onAugust 1 for $14 per share.Nautical has the following beginning balances in its stockholders'equity accounts on January 1, 2024: Preferred Stock, $1,000; CommonStock, $2,000; Additional Paid-in Capital, $18,500; and RetainedEarnings, $10,500. Net income for the year ended December 31, 2024,is $7,150.

Journal entry:The monetary transaction of the business is recorded in the books of accounts called…

Answered: Problem 10-2B (Algo) Record equity…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 57E: Outstanding Stock Lars Corporation shows the following information in the stockholders equity...

See similar textbooks

Similar questions

Raun Company had the following equity items as of December 31, 2019: Preferred stock, 9% cumulative, 100 par, convertible Paid-in capital in excess of par value on preferred stock Common stock, 1 stated value Paid-in capital in excess of stated value on common stock| Retained earnings The following additional information about Raun was available for the year ended December 31, 2019: 1. There were 2 million shares of preferred stock authorized, of which 1 million were outstanding. All 1 million shares outstanding were issued on January 2, 2016, for 120 a share. The preferred stock is convertible into common stock on a 1-for-1 basis until December 31, 2025; thereafter, the preferred stock ceases to be convertible and is callable at par value by the company. No preferred stock has been converted into common stock, and there were no dividends in arrears at December 31, 2019. 2. The common stock has been issued at amounts above stated value per share since incorporation in 2002. Of the 5 million shares authorized, 3,580,000 were outstanding at January 1, 2019. The market price of the outstanding common stock has increased slowly but consistently for the last 5 years. 3. Raun has an employee share option plan where certain key employees and officers may purchase shares of common stock at 100% of the marker price at the date of the option grant. All options are exercisable in installments of one-third each year, commencing 1 year after the date of the grant, and expire if not exercised within 4 years of the grant date. On January 1, 2019, options for 70,000 shares were outstanding at prices ranging from 47 to 83 a share. Options for 20,000 shares were exercised at 47 to 79 a share during 2019. During 2019, no options expired and additional options for 15,000 shares were granted at 86 a share. The 65,000 options outstanding at December 31, 2019, were exercisable at 54 to 86 a share; of these, 30,000 were exercisable at that date at prices ranging from 54 to 79 a share. 4. Raun also has an employee share purchase plan whereby the company pays one-half and the employee pays one-half of the market price of the stock at the date of the subscription. During 2019, employees subscribed to 60,000 shares at an average price of 87 a share. All 60,000 shares were paid for and issued late in September 2019. 5. On December 31, 2019, there was a total of 355,000 shares of common stock set aside for the granting of future share options and for future purchases under the employee share purchase plan. The only changes in the shareholders equity for 2019 were those described previously, the 2019 net income, and the cash dividends paid. Required: Prepare the shareholders equity section of Rauns balance sheet at December 31, 2019. Substitute, where appropriate, Xs for unknown dollar amounts. Use good form and provide full disclosure. Write appropriate notes as they should appear in the publisher financial statements.
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.
Required information Problem 10-2A (Algo) Record equity transactions and indicate the effect on the balance sheet equation (LO10-2, 10-3, 10-4, 10-5) [The following information applies to the questions displayed below.] Donnie Hilfiger has two classes of stock authorized: $1 par preferred and $0.01 par value common. As of the beginning of 2024, 450 shares of preferred stock and 5,500 shares of common stock have been issued. The following transactions affect stockholders' equity during 2024: March 1 May 15 July 10 Issue 2,600 shares of common stock for $57 per share. Purchase 550 shares of treasury stock for $50 per share. Resell 350 shares of treasury stock purchased on May 15 for $55 per share. Issue 350 shares of preferred stock for $60 per share. Declare a cash dividend on both common and preferred stock of $2.00 per share to all stockholders of record on December 15. (Hint: Dividends are not paid on treasury stock.) December 31 Pay the cash dividends declared on December 1. October…
! Required information Problem 10-2A (Algo) Record equity transactions and indicate the effect on the balance sheet equation (LO10-2, 10-3, 10-4, 10-5) [The following information applies to the questions displayed below.] Donnie Hilfiger has two classes of stock authorized: $1 par preferred and $0.01 par value common. As of the beginning of 2024, 320 shares of preferred stock and 4,200 shares of common stock have been issued. The following transactions affect stockholders' equity during 2024: March 1 May 15 July 10 October 15 December 1 Issue 1,300 shares of common stock for $44 per share. Purchase 420 shares of treasury stock for $37 per share. Resell 220 shares of treasury stock purchased on May 15 for $42 per share. Issue 220 shares of preferred stock for $47 per share. Declare a cash dividend on both common and preferred stock of $0.70 per share to all stockholders of record on December 15. (Hint: Dividends are not paid on treasury stock.) December 31 Pay the cash dividends…
Required information Problem 10-2A (Algo) Record equity transactions and indicate the effect on the balance sheet equation (LO10-2, 10-3, 10-4, 10-5) [The following information applies to the questions displayed below.] Donnie Hilfiger has two classes of stock authorized: $1 par preferred and $0.01 par value common. As of the beginning of 2024, 320 shares of preferred stock and 4,200 shares of common stock have been issued. The following transactions affect stockholders' equity during 2024: March 1 May 15 July 10 Issue 1,300 shares of common stock for $44 per share. Purchase 420 shares of treasury stock for $37 per share. Resell 220 shares of treasury stock purchased on May 15 for $42 per share. Issue 220 shares of preferred stock for $47 per share. Declare a cash dividend on both common and preferred stock of $0.70 per share to all stockholders of record on December 15. (Hint: Dividenda are not paid on treasury stock.) December 31 Pay the cash dividends declared on December 1. October…
Required information Problem 10-2B (Algo) Record equity transactions and indicate the effect on the balance sheet equation (LO10-2, 10-3, 10-4, 10-5) [The following information applies to the questions displayed below.] Nautical has two classes of stock authorized: $10 par preferred, and $1 par value common. As of the beginning of 2024, 125 shares of preferred stock and 2,100 shares of common stock have been issued. The following transactions affect stockholders' equity during 2024: March 1 April 1 June 1 Issue 2,100 additional shares of common stock for $16 per share. Issue 175 additional shares of preferred stock for $31 per share. Declare a cash dividend on both common and preferred stock of $0.55 per share to all stockholders of record on June 15. June 30 Pay the cash dividends declared on June 1. August 1 Purchase 175 shares of common treasury stock for $13 per share. October 1 Reissue 125 shares of treasury stock purchased on August 1 for $15 per share. Nautical has the following…
P13-40A (similar to) Thurman Comfort Specialists, Inc. reported the following stockholders' equity on its balance sheet at June 30, 2018: E (Click the icon to view the partial balance sheet.) Repde Data Table - X Re utstar Requirements Th Stockholders' Equity 1. Paid-In Capital: Identify the different classes of stock that Thurman Comfort Specialists has outstanding. What is the par value per share of Thurman Comfort Specialists' preferred stock? 2. Preferred Stock-5%, ? Par Value; 650,000 shares authorized, 375,000 shares issued and outstanding $ 1,500,000 3. Make two summary journal entries to record issuance of all the Thurman Comfort Specialists' stock for cash. Explanations are not required. Common Stock-$1 Par Value; 7,000,000 shares 4. No preferred dividends are in arrears. Journalize the declaration of a authorized, 1,330,000 shares issued and outstanding $300,000 dividend at June 30, 2018, and the payment of the dividend on July 20, 2018. Use separate Dividends Payable…
Required information Problem 10-6A (Algo) Record equity transactions and prepare the stockholders' equity section (LO10-2, 10-3, 10-4, 10-5, 10-7) [The following information applies to the questions displayed below.] Golf Apparel has two classes of stock authorized: 4%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2024, its first year of operations: January 2 Issue 120,000 shares of common stock for $65 per share. February 14 Issue 55,000 shares of preferred stock for $13 per share. Purchase 12,000 shares of its own common stock for $55 per share. Resell 6,000 shares of treasury stock for $60 per share. May 8 May 31 December 1 Declare a cash dividend on its common stock of $0.75 per share and a $22,000 (4% of par value) cash dividend on its preferred stock payable to all stockholders of record on December 15. The dividend is payable on December 30. (Hint: Dividends are not paid on treasury stock.) December 30 Pay the cash…
(Statement Presentation of Transactions—Equity Accounts) The following selected account balances are taken from the financial statements of Mandrich Inc. at its calendar year end prepared using IFRS: The following selected account balances are taken from the financial statements of Mandrich Inc. at its calendar year end prepared using IFRS: 2020 2019 Preferred shares classified as equity $145,000 $145,000 Common shares: 9,000 shares in 2020, 10,000 shares in 2019 142,000 160,000 Contributed surplus—reacquisition of common shares 3,500 –0– Cash dividends—preferred 6,250 6,250 Stock dividends—common 14,000 –0– Retained earnings (balance after closing entries) 300,000 240,000 At December 31, 2020, the following information is available: Mandrich Inc. repurchased 2,000 common shares during 2020. The repurchased shares had a weighted average cost of $32,000.During 2020, 1,000 common shares were issued as a stock dividend.Mandrich…
! Required Information [The following information applies to the questions displayed below.] Nautical has two classes of stock authorized: $10 par preferred, and $1 par value common. As of the beginning of 2024, 125 shares of preferred stock and 3,000 shares of common stock have been issued. The following transactions affect stockholders' equity during 2024: March 1 April 1 June 1 June 30 August 1 Issue 3,000 additional shares of common stock for $10 per share. Issue 175 additional shares of preferred stock for $40 per share. Declare a cash dividend on both common and preferred stock of $0.25 per share to all stockholders of record on June 15. Pay the cash dividends declared on June 1. Purchase 175 shares of common treasury stock for $7 per share. October 1 Resell 125 shares of treasury stock purchased on August 1 for $9 per share. Nautical has the following beginning balances in its stockholders' equity accounts on January 1, 2024: Preferred Stock, $1,250; Common Stock, $3,000;…
Required information [The following information applies to the questions displayed below.] The stockholders' equity section of Velcro World is presented here. VELCRO WORLD Balance Sheet (partial). ($ and shares in thousands) Stockholders' equity: Preferred stock, $1 par value Common stock, $1 par value Additional paid-in capital Total paid-in capital $ 4,300 13,000 293,600 310,900 271,000 (180,000) Retained earnings Treasury stock, 12,000 common shares Total stockholders' equity $ 401,900 Based on the stockholders' equity section of Velcro World, answer the following questions. Remember that all amounts are presented in thousands. 4. If retained earnings at the beginning of the period was $233 million and $13 million was paid in dividends during the year, what was the net income for the year? (Enter your answer in million (i.e., 5,000,000 should be entered as 5).) Net income million
Template Company provided the following concerning marketable equity securities held as "trading." 1. The entity carried the following securities on December 31, 2022: 2. On June 30, 2023, the entity sold all the B ordinary shares for P140,000. 3. On December 31, 2023, the securities are quoted as follows: A ordinary - 4,000 shares B ordinary - 1,000 shares C preference - 2,000 shares A ordinary - 4,000 shares C preference -2,000 shares Requirement: Complete the table below. Write zero (0) if it is not applicable. Statement of Financial Position Investments - FVPL Statement of Changes in Equity Retained earnings Statement of Income Unrealized gain/(loss) Realized gain/(loss) Acquisition Date [a] [d] [9] 0] Cost 330,000 200,000 300,000 830,000 Market P80 per share P180 per share December 31, 2022 300,000 160,000 310,000 770,000 [b] [e] [h] [k] December 31, 2023 [c] [U] 0 [0]

SEE MORE QUESTIONS

Recommended textbooks for you

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS