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In: Accounting
Armstrong Corporation has the following shareholders' equity on December 31, 2021: Shareholders' equity Share capital ...
Armstrong Corporation has the following shareholders' equity on
December 31, 2021:
Shareholders' equity
Share capital
| | $10 convertible preferred shares, |
| | 10,000 shares authorized, 5,000 shares issued | $570,000 |
| | Common shares, |
| | 200,000 shares authorized, 90,000 shares issued | 1,800,000 |
| Total share capital | 2,370,000 |
| Retained earnings | 450,000 |
| Total shareholders' equity | $2,820,000 |
If 10,000 common shares were reacquired for $24 per share, the
journal entry to record the transaction would
|
credit Contributed Surplus–Reacquisition of Shares for $40,000. |
||
|
credit Retained Earnings for $40,000. |
||
|
credit Common Shares for $240,000. |
||
|
debit Common Shares for $200,000. |
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| debit Common Shares for $200,000. | |||
| General Journal | Debit | Credit | |
| Common Stock | 200,000 | (10,000 x $20) | |
| Retained Earnings | 40,000 | balance | |
| Cash | 240,000 | (10,000 x $24) | |
| Par value of the common share | $20.00 | ||
| (1,800,000/90,000) | |||
ekkarill92 answered 2 years agoRelated Solutions
The following is the Issued Share Capital section of shareholders’ equity for the Larson Corporation of...
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Issued Share Capital:
Preferred Shares, no par value, $2 dividend, authorized 20,000
shares, 5,000 shares issued .................$125,000
Common Shares, no par value, authorized 100,000 shares, 20,000
shares issued............ $200,000
Total Issued Share Capital $325,000
The following transactions occurred in the months of June and
July 2013:
June 3: Issued 2,000 preferred shares at $28 per share.
June 4:...
National Supply’s shareholders’ equity included the following accounts at December 31, 2017: Shareholders' Equity ($ in...
National Supply’s shareholders’ equity included the following
accounts at December 31, 2017:
Shareholders'
Equity
($
in millions)
Common stock, 4
million shares at $1 par
$
4,000,000
Paid-in capital—excess of
par
16,000,000
Retained earnings
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Required:
1a. National Supply reacquired shares of its common stock in two
separate transactions and later sold shares. Prepare the entries
for each of the transactions under each of two separate
assumptions: the shares are (a) retired and (b) accounted for as
treasury stock.
February...
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National Supply’s shareholders’ equity included the following
accounts at December 31, 2017:
Shareholders' Equity
($ in millions)
Common stock, 3 million shares at $1 par
$
3,000,000
Paid-in capital—excess of par
9,000,000
Retained earnings
71,500,000
Required:
1. National Supply reacquired shares of its common
stock in two separate transactions and later sold shares. Prepare
the entries for each of the transactions under each of two separate
assumptions: the shares are (a) retired and (b) accounted for as
treasury stock.
February...
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Required: 1. National Supply reacquired shares of its common stock
in two separate transactions and later sold shares. Prepare the
entries for each of the transactions under each of two separate
assumptions: the shares are (a) retired and (b) accounted for as
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on the December 31, 2014 balance sheet:
Preferred shares, $5 dividend, 10,000
shares authorized,
2,500 shares issued
$180,000
Common shares, 100,000 authorized,
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100,000
Contributed Surplus'
122,000
Retained Earnings
238,000
Total Shareholders’ Equity
$640000
During 2015, the following transactions
impacted shareholders’ equity:
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per share and retired
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Wilma Corporation reported the following amounts in its
shareholders’ equity section on the December 31, 2014 balance
sheet:
Preferred shares, $5 dividend, 10,000 shares authorized,
$180,000
2,500 shares
issued
Common shares, 100,000 authorized, 25,000
issued
100,000
Contributed
Surplus[1]
122,000
Retained
Earnings
238,000
Accumulated Other Comprehensive
Income
50,000
Total Shareholders’
Equity
$690,000
During 2015, the following transactions impacted shareholders’
equity:
a) Jan 15: Purchased 6,000
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On December 31, 2020, Crane Corporation had the
following shareholders’ equity accounts:
CRANE CORPORATION
Balance Sheet (partial)
December 31, 2020
Shareholders’ equity
Common shares (unlimited number of shares
authorized, 92,000 issued) $1,033,000
Retained earnings 520,000
Total shareholders’ equity
$1,553,000
During the year, the following transactions
occurred:
Jan. 15 Declared a $1 per share cash dividend to
shareholders of record on January 31, payable February 15.
July 1 Announced a 2-for-1 stock split. The market price per share
on...
National Supply’s shareholders’ equity included the following accounts at December 31, 2020: Shareholders' Equity Common stock,...
National Supply’s shareholders’ equity included the following
accounts at December 31, 2020:
Shareholders' Equity
Common stock, 7 million shares at $1 par
$
7,000,000
Paid-in capital—excess of par
63,000,000
Retained earnings
95,500,000
Required:
1. National Supply reacquired shares of its common
stock in two separate transactions and later sold shares. Prepare
the entries for each of the transactions under each of two separate
assumptions: the shares are (a) retired and (b) accounted for as
treasury stock.
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National Supply’s shareholders’ equity included the following
accounts at December 31, 2020:
Shareholders' Equity
Common stock, 5 million shares at $1 par $ 5,000,000
Paid-in capital—excess of par 30,000,000
Retained earnings 98,500,000
Required: 1. National Supply reacquired shares of its common
stock in two separate transactions and later sold shares. Prepare
the entries for each of the transactions under each of two separate
assumptions: the shares are (a) retired and (b) accounted for as
treasury stock.
February 15, 2021 Reacquired...
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