Question

In: Accounting

3. At September 30, the end of Beijing Company’s third quarter, the following stockholders’ equity accounts...

3. At September 30, the end of Beijing Company’s third quarter, the following stockholders’ equity accounts are reported.


Common stock, $10 par value	$	360,000
Paid-in capital in excess of par value, common stock		90,000
Retained earnings		320,000

In the fourth quarter, the following entries related to its equity are recorded:

Date	General Journal	Debit	Credit
Oct. 2	Retained Earnings	50,000
	Common Dividend Payable		50,000

Oct. 25	Common Dividend Payable	50,000
	Cash		50,000

Oct. 31	Retained Earnings	67,000
	Common Stock Dividend Distributable		32,000
	Paid-In Capital in Excess of Par Value, Common Stock		35,000

Nov. 5	Common Stock Dividend Distributable	32,000
	Common Stock, $10 Par Value		32,000

Dec. 1	Memo—Change the title of the common stock
	account to reflect the new par value of $4.

Dec. 31	Income Summary	250,000
	Retained Earnings		250,000

Required:
Complete the following table showing the equity account balances at each indicated date.

4. The equity sections from Atticus Group’s 2016 and 2017 year-end balance sheets follow.

Stockholders’ Equity (December 31, 2016)
Common stock—$5 par value, 100,000 shares authorized, 35,000 shares issued and outstanding	$175,000
Paid-in capital in excess of par value, common stock	135,000
Retained earnings	340,000
Total stockholders’ equity	$650,000

Stockholders’ Equity (December 31, 2017)
Common stock—$5 par value, 100,000 shares authorized, 41,200 shares issued, 4,000 shares in treasury	$206,000
Paid-in capital in excess of par value, common stock	178,400
Retained earnings ($50,000 restricted by treasury stock)	420,000
	804,400
Less cost of treasury stock	(50,000)
Total stockholders’ equity	$754,400

The following transactions and events affected its equity during year 2017.

Jan.	5	Declared a $0.50 per share cash dividend, date of record January 10.
Mar.	20	Purchased treasury stock for cash.
Apr.	5	Declared a $0.50 per share cash dividend, date of record April 10.
July	5	Declared a $0.50 per share cash dividend, date of record July 10.
July	31	Declared a 20% stock dividend when the stock’s market value was $12 per share.
Aug.	14	Issued the stock dividend that was declared on July 31.
Oct.	5	Declared a $0.50 per share cash dividend, date of record October 10.

Problem 13-4A Part 1

Required:
1. How many common shares are outstanding on each cash dividend date?

Expert Solution

Answer 3:

	Oct 2	Oct 25	Oct 31	Nov 5	Dec 1	Dec 31
Common Stock	360,000	360,000	360,000	392,000	392,000	392,000
Common stock dividend distributable	0.00	0.00	32,000	0.00	0.00	0.00
Paid-in capital in excess of par, Common stock	90,000	90,000	125,000	125,000	125,000	125,000
Retained earnings	270,000	270,000	203,000	203,000	203,000	453,000
Total equity	720,000	720,000	720,000	720,000	720,000	970,000

explanations:

1. Retained earnings on November 5 = 360,000+32,000 = 392,000

2. Paid in capital on Oct 31 = 90,000+35,000 = 125,000

3. Retained earnings on Oct 2 = 320,000 - 50,000 = 270,000

4. Retained earnings on Oct 31 = 270,000 - 67,000 = 203,000

5. Retained earnings on dec 31 = 203,000 + 250,000 = 453000

6. Total equity = common stock + dividend distributed +paid-in capital+retained earnings

Note: In case of unrelated multiple questions, only the first has to be answered. Thank you. Kindly leave feedback.

ekkarill92 answered 10 months ago

At September 30, the end of Beijing Company’s third quarter, the following stockholders’ equity accounts are...

At September 30, the end of Beijing Company’s third quarter, the following stockholders’ equity accounts are reported. Common stock, $12 par value $ 360,000 Paid-in capital in excess of par value, common stock 100,000 Retained earnings 360,000 In the fourth quarter, the following entries related to its equity are recorded. Date General Journal Debit Credit Oct. 2 Retained Earnings 70,000 Common Dividend Payable 70,000 Oct. 25 Common Dividend Payable 70,000 Cash 70,000 Oct. 31 Retained Earnings 75,000 Common Stock Dividend...

Reporting Stockholders' Equity Using the following accounts and balances, prepare the Stockholders' Equity section of the...

Reporting Stockholders' Equity Using the following accounts and balances, prepare the Stockholders' Equity section of the balance sheet using Method 1 of Exhibit 8. 100,000 shares of common stock authorized, and 10,000 shares have been reacquired. Common Stock, $50 par $3,500,000 Paid-In Capital from Sale of Treasury Stock 70,000 Paid-In Capital in Excess of Par—Common Stock 630,000 Retained Earnings 1,855,000 Treasury Stock 32,000 Stockholders' Equity Paid-In Capital: Common Stock, $50 Par $ $ Total Paid-in Capital $ Total $ Total...

Statement of Stockholders' Equity The stockholders’ equity T accounts of I-Cards Inc. for the fiscal year...

Statement of Stockholders' Equity The stockholders’ equity T accounts of I-Cards Inc. for the fiscal year ended December 31, 20Y9, are as follows. COMMON STOCK Jan. 1 Balance 900,000 Apr. 14 Issued 9,600 shares 384,000 Dec. 31 Balance 1,284,000 PAID-IN CAPITAL IN EXCESS OF PAR Jan. 1 Balance 144,000 Apr. 14 Issued 9,600 shares 76,800 Dec. 31 Balance 220,800 TREASURY STOCK Aug. 7 Purchased 1,600 shares 59,200 RETAINED EARNINGS Mar. 31 Dividend 23,000 Jan. 1 Balance 1,570,000 June. 30 Dividend...

The records of Hollywood Company reflected the following balances in the stockholders' equity accounts at the...

The records of Hollywood Company reflected the following balances in the stockholders' equity accounts at the end of the current year: Common stock, $12 par value, 50,000 shares outstanding Preferred stock, 10 percent, $10 par value, 5,000 shares outstanding Retained earnings, $227,000 On September 1 of the current year, the board of directors was considering the distribution of an $82,000 cash dividend. No dividends were paid during the previous two years. You have been asked to determine dividend amounts under...

Stockholders’ Equity Transactions, Journal Entries, and T-Accounts The stockholders’ equity of Fremantle Corporation at January 1...

Stockholders’ Equity Transactions, Journal Entries, and T-Accounts The stockholders’ equity of Fremantle Corporation at January 1 follows: 8 Percent preferred stock, $100 par value, 20,000 shares authorized; 4,000 shares issued and outstanding $400,000 Common stock, $1 par value, 10,000 shares authorized; 40,000 shares issued and outstanding 40,000 Paid-in capital in excess of par value-Preferred stock 200,000 Paid-in capital in excess of par value-Common stock 800,000 Retained earnings 560,000 Total Stockholders' Equity $2,000,000 The following transactions, among others, occurred during the...

1.Which of the following would not be included in a company’s total stockholders’ equity? Investments in...

1.Which of the following would not be included in a company’s total stockholders’ equity? Investments in equity securities Additional paid-in capital Retained earnings Treasury stock 2.How do “dividends in arrears” on cumulative preferred stock appear in the financial statements? as a liability on the balance sheet as a contra equity item as an expense on the income statement dividends in arrears will not appear as a line item within the financial statements, but must be disclosed in the notes to...

The following stockholders’ equity accounts, arranged alphabetically, are in the ledger of Eudaley Corporation at December...

The following stockholders’ equity accounts, arranged alphabetically, are in the ledger of Eudaley Corporation at December 31, 2017. Common Stock ($6 stated value) $2,052,000 Paid-in Capital in Excess of Par—Preferred Stock 285,000 Paid-in Capital in Excess of Stated Value—Common Stock 920,000 Preferred Stock (8%, $104 par) 572,000 Retained Earnings 1,120,000 Treasury Stock (11,500 common shares) 138,000 Prepare the stockholders’ equity section of the balance sheet at December 31, 2017. (Enter the account name only and do not provide the descriptive...

The Coldwater Corporation has the following accounts in its stockholders’ equity section at the beginning of...

The Coldwater Corporation has the following accounts in its stockholders’ equity section at the beginning of 2013: Preferred stock, $50 par value, 7% cumulative and nonparticipating, 5,000 shares ........................$ 250,000 Common Stock, $1 par value, 100,000 shares authorized. 50,000 shares outstanding ...................... 50,000 Paid-in Capital in Excess of Par – Common ..................................................................... 550,000 Paid-in Capital in Excess of Par – Preferred ..................................................................... 25,000 Retained Earnings ................................................................................................. $2,300,000 During 2013, Coldwater Corp. declared and distributed the following dividends in the order...

Stockholders' Equity Section of Balance Sheet The following accounts and their balances appear in the ledger...

Stockholders' Equity Section of Balance Sheet The following accounts and their balances appear in the ledger of Goodale Properties Inc. on June 30 of the current year: Common Stock, $15 par $792,000 Paid-In Capital from Sale of Treasury Stock 32,500 Paid-In Capital in Excess of Par—Common Stock 21,120 Retained Earnings 1,243,000 Treasury Stock 16,340 Prepare the Stockholders’ Equity section of the balance sheet as of June 30 using Method 1 of Exhibit 8. Eighty thousand shares of common stockare authorized,...

At September 30, 2018, the accounts of South Terrace Medical Center (STMC) include the following: Accounts...

At September 30, 2018, the accounts of South Terrace Medical Center (STMC) include the following: Accounts Receivable $145,000 Allowance for Bad Debts 3,600 During the last quarter of 2018, STMC completed the following selected transactions: -Sales on account, $490,000. Ignore Cost of Goods Sold. -Collections on account $374,100. -Wrote off accounts receivable as uncollectible: Roho Co.:$1,900, Oliver Jones: $1,000, Parrot Inc.:$400 -Recorded bad debts expense based on the aging of accounts receivable, as follows: A/R: 1-30 days: $95,000, 31-60 days:...