Question

In: Accounting

Johansson Corporation has issued 400,000 shares of $2 par value Ordinary shares. It authorized 600,000 shares....

Johansson Corporation has issued 400,000 shares of $2 par value Ordinary shares. It authorized
600,000 shares. The share premium on ordinary shares is $500,000. The corporation has reacquired
20,000 shares at a cost of $80,000 and is currently holding those shares. Treasury stock was reissued
in prior years for $100,000 more than its cost. The company declared the issuance of a stock dividend
of 10,000 shares.
The corporation also has 5,000 shares issued and outstanding of 9%, $100 par value preference
shares. It authorized 10,000 shares. The share premium on preference shares is $100,000. Retained
earnings is $1,000,000.
Required: Prepare the stockholders’ equity section of the statement of financial position.

Expert Solution

SOLUTION:

Johansson Corporation

Balance Sheet (partial)

Stockholders’ equity

Paid-in capital

Capital stock

9% preferred stock, $100 par value,
10,000 shares authorized, 5,000
shares issued and outstanding....................................... $ 500,000

                            Common stock, $2 par value, 600,000
                             shares authorized, 410,000 shares
                             issued, and 390000 shares outstanding..........................     820,000

Total capital stock .................................................... 1320,000

Additional paid-in capital

In excess of par value—preferred stock............ $ 100,000

In excess of par value—common stock................ 500,000

From treasury stock............................................. 100,000

Total additional paid-in capital................................. 700,000

Total paid-in capital.................................................. 2,020,000

Retained earnings.......................................................1000000

Dividends declared in form of issuance of stock ........(100000)...........................900000

Total paid-in-capital and
retained earnings.................................................. 2920000

Less: Treasury stock—common
(20000 shares) (at cost) ........................................................ (80000)

Total stockholders’ equity........................................ $2840000

ekkarill92 answered 2 years ago

11.) Melon Company has outstanding 400,000 shares of $10 par value ordinary shares. The company declares...

11.) Melon Company has outstanding 400,000 shares of $10 par value ordinary shares. The company declares a 5% shares dividend when the fair value of the shares is $65 per share. Prepare the journal entries for Melon Company for both the date of declaration and the date of distribution. 12.) Use the information from QUESTION 11, but assume Melon Company declared a 100% shares dividend rather than a 5% shares dividend. Prepare the journal entries for both the date of...

Sheffield Inc. was authorized to issue 100000 £10 par value ordinary shares. As of December 31,...

Sheffield Inc. was authorized to issue 100000 £10 par value ordinary shares. As of December 31, 2020, the company had issued 54000 shares at an average price of £22 per share. During 2020, the company felt that the shares were undervalued so it purchased 9800 treasury shares at £16 per share. When the share price rebounded later in the year, the company sold 4200 of the treasury shares for £24 per share. Retained earnings was £1666000 at December 31, 2020....

Green Day Corporation has outstanding 400,000 shares of $10 par value common stock.

Green Day Corporation has outstanding 400,000 shares of $10 par value common stock. The corporation declares a 5% stock dividend when the fair value of the stock is $65 per share. Prepare the journal entries for Green Day Corporation for both the date of declaration and the date of distribution.

Part II Maria Limited is authorized to sell 1,000,000 its $10 par value ordinary shares. As...

Part II Maria Limited is authorized to sell 1,000,000 its $10 par value ordinary shares. As at the end of the current year, the company has actually sold 500,000 ordinary shares at $15 per share. In addition, of the 500,000 ordinary shares that have been sold, 40,000 shares have been repurchased at $80 per share to be used to meet the future requirements of a share option plan that the company intends to implement. Required: Prepare the general journal entries...

2. United Rentals Corporation is authorized to issue 100,000 shares of 5%, $60 par value preferred...

2. United Rentals Corporation is authorized to issue 100,000 shares of 5%, $60 par value preferred stock and 5,000,000 shares of no-par common stock with a stated value of $3 per share. During 2016, its first year of operation, the company has the following transactions. Jan. 1 Issued 15,000 shares of preferred stock for cash at $105 per share. Jan. 15 Issued 500,000 shares of common stock for cash at $10 per share. Mar....

Common stock (par $2; no changes during the current year). Shares authorized, 5,000,000. Shares issued, ? ;...

Common stock (par $2; no changes during the current year). Shares authorized, 5,000,000. Shares issued, ? ; issue price $7 per share. Shares held as treasury stock, 10,200 shares, cost $5 per share. Net income for the current year, $500,080. Common Stock account, $152,000. Dividends declared and paid during the current year, $2 per share. Retained Earnings balance, beginning of year, $820,000 1. Shares issued Shares outstanding 2. The balance in Additional Paid-in Capital would be 3. Earnings per share is...

A&K Corporation was established in 2016. A&K has authorized 50,000 shares of common stock, par value...

A&K Corporation was established in 2016. A&K has authorized 50,000 shares of common stock, par value $1 per share, and 10,000 authorized shares of 9% preferred stock, par value $20 per share. Net Income for 2016 was $245,000. The following transactions took place during 2016: January 1 Issued 40,000 shares of common stock for cash at $30 per share. February 1 Issued 7,000 shares of preferred stock for cash of $60 per share. June 1 Repurchased 8,000 shares of L&D...

create journal entries: Common stock—$10 par value, 100,000 shares authorized, 55,000 shares issued and outstanding $...

create journal entries: Common stock—$10 par value, 100,000 shares authorized, 55,000 shares issued and outstanding $ 550,000 Paid-in capital in excess of par value, common stock 80,000 Retained earnings 460,000 Total stockholders’ equity $ 1,090,000 In year 2016, the following transactions affected its stockholders’ equity accounts. Jan. 1 Purchased 5,000 shares of its own stock at $20 cash per share. Jan. 5 Directors declared a $4 per share cash dividend payable on Feb. 28 to the Feb. 5 stockholders of...

Prepare statement of retained earnings: Common stock—$10 par value, 100,000 shares authorized, 55,000 shares issued and...

Prepare statement of retained earnings: Common stock—$10 par value, 100,000 shares authorized, 55,000 shares issued and outstanding $ 550,000 Paid-in capital in excess of par value, common stock 80,000 Retained earnings 460,000 Total stockholders’ equity $ 1,090,000 In year 2016, the following transactions affected its stockholders’ equity accounts. Jan. 1 Purchased 5,000 shares of its own stock at $20 cash per share. Jan. 5 Directors declared a $4 per share cash dividend payable on Feb. 28 to the Feb. 5...

Common stock—$20 par value, 100,000 shares authorized, 55,000 shares issued and outstanding $1,100,000 Paid-in capital in...

Common stock—$20 par value, 100,000 shares authorized, 55,000 shares issued and outstanding $1,100,000 Paid-in capital in excess of par value, common stock 70,000 Retained earnings 430,000 Total stockholders' equity $1,600,000 In year 2017, the following transactions affected its stockholders’ equity accounts. Jan. 1 Purchased 4,500 shares of its own stock at $25 cash per share. Jan. 5 Directors declared a $6 per share cash dividend payable on February 28 to the February 5 stockholders of record. Feb. 28 Paid the...