Prepare stockholder equity section of the companys balance sheet as of dec 31, 2016: Common stock—$10...

Prepare stockholder equity section of the companys balance sheet as of dec 31, 2016:

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 record. Feb. 28 Paid the dividend declared on January 5. July 6 Sold 1,875 of its treasury shares at $24 cash per share. Aug. 22 Sold 3,125 of its treasury shares at $17 cash per share. Sept. 5 Directors declared a $4 per share cash dividend payable on October 28 to the September 25 stockholders of record. Oct. 28 Paid the dividend declared on September 5. Dec. 31 Closed the $408,000 credit balance (from net income) in the Income Summary account to Retained Earnings.

Expert Solution

Company name
Journal entries
Date	General journal	Debit	Credit
Jan. 1	Treasury Stock	100,000
	Cash		100,000
	(To record Purchased 5,000 shares of its own stock at $20 cash per share.) (5000*20)

Jan. 5	Retained earnings	200,000
	Dividend payable		200,000
	(To record Directors declared a $4 per share cash dividend payable on Feb. 28) ((55000-5000)*4)

Feb. 28	Dividend payable	200,000
	Cash		200,000
	(To record Paid the dividend declared on January 5.)

July 6	Cash (1875*24)	45,000
	Retained earnings (1875*(24-20))		7,500
	Treasury Stock (1875*20)		37,500
	(To record Sold 1,875 of its treasury shares at $24 cash per share)

Aug. 22	Cash (3125*17)	53,125
	Retained earnings (3125*(20-17))	9,375
	Treasury Stock (3125*20)		62,500
	(To record Sold 3,125 of its treasury shares at $17 cash per share)

Sept. 5	Retained earnings	220,000
	Dividend payable		220,000
	(To record declared a $4 per share cash dividend payable on October 28) ((55000-5000+1875+3125)*4)

Oct. 28	Dividend payable	220,000
	Cash		220,000
	(To record Paid the dividend declared on September 5.)

Dec. 31	Income summary	408,000
	Retained earnings		408,000
	(To record Closed the $408000 credit balance (from net income) in the Income Summary account to Retained Earnings.)

Company name
Statement of retained earnings
For the year ended December 31, 2017
Retained earnings, December 31, 2016	460,000
Add: Net income	408,000
	868,000
Less: Cash dividends declared (200000+220000)	-420000
Less: Treasury stock reissuances (9375-7500)	-1875
Retained earnings, December 31, 2017	446,125

Company name
Stockholders’ equity
On December 31, 2017
Common stock—$10 par value, 100,000 shares authorized,
55,000 shares issued and outstanding	550000
Paid-in capital in excess of par value, common stock	90,000
Total paid in capital	640,000
Retained earnings	446,125
Stockholders’ equity	1,086,125

ekkarill92 answered 2 years ago

On October 31, the stockholders’ equity section of Pharoah Company’s balance sheet consists of common stock...

On October 31, the stockholders’ equity section of Pharoah Company’s balance sheet consists of common stock $ 680,000 and retained earnings $395,000. Pharoah is considering the following two courses of action: (1) Declaring a 5% stock dividend on the 85,000 $ 8 par value shares outstanding (2) Effecting a 2-for-1 stock split that will reduce par value to $ 4 per share. The current market price is $ 13 per share. Prepare a tabular summary of the effects of the alternative actions...

Below is the comparative balance sheet for Swifty Corporation. Dec. 31, 2017 Dec. 31, 2016 Cash...

Below is the comparative balance sheet for Swifty Corporation. Dec. 31, 2017 Dec. 31, 2016 Cash $16,500 $20,900 Short-term investments 24,800 18,800 Accounts receivable 42,700 45,400 Allowance for doubtful accounts (1,700 ) (2,000 ) Prepaid expenses 4,200 2,400 Inventory 81,200 65,700 Land 49,700 49,700 Buildings 125,700 73,400 Accumulated depreciation—buildings (29,800 ) (22,800 ) Equipment 53,200 46,300 Accumulated depreciation—equipment (19,100 ) (15,500 ) Delivery equipment 38,800 38,800 Accumulated depreciation—delivery equipment (22,100 ) (20,700 ) Patents 15,200 –0– $379,300 $300,400 Accounts payable...

Below is the comparative balance sheet for Crane Corporation. Dec. 31, 2017 Dec. 31, 2016 Cash...

Below is the comparative balance sheet for Crane Corporation. Dec. 31, 2017 Dec. 31, 2016 Cash $16,500 $20,800 Short-term investments 25,000 18,900 Accounts receivable 43,200 44,600 Allowance for doubtful accounts (1,800 ) (1,900 ) Prepaid expenses 4,100 2,500 Inventory 81,700 65,500 Land 49,500 49,500 Buildings 125,000 73,100 Accumulated depreciation—buildings (30,000 ) (22,800 ) Equipment 52,800 46,200 Accumulated depreciation—equipment (19,100 ) (15,500 ) Delivery equipment 39,400 39,400 Accumulated depreciation—delivery equipment (22,000 ) (20,500 ) Patents 14,900 –0– $379,200 $299,800 Accounts payable...

Prepare a balance sheet in report form as of December 31, 2016. * Balance sheet data:...

Prepare a balance sheet in report form as of December 31, 2016. * Balance sheet data: Accounts payable $ 194,300 Accounts receivable 545,000 Accumulated depreciation—office buildings and equipment 1,580,000 Accumulated depreciation—store 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...

The stockholders' equity section of Night Corporation's balance sheet at January 1 follows: Common stock, $3...

The stockholders' equity section of Night Corporation's balance sheet at January 1 follows: Common stock, $3 par value, 300,000 shares authorized, 60,000 shares 180,000 issued, 6,000 shares in treasury Additional paid-in capital In excess of par value 240,000 From treasury stock 15,000 255,000 Retained earnings 174,000 609,000 Less: Treasury stock (6,000 shares) at cost 69,000 Total Stockholdersâ€™ Equity 540,000 The following transactions affecting stockholdersâ€™ equity occurred during the year: Jan. 8 Issued 15,000 shares of previously unissued common stock...

Dec 31 Industry Average Balance Sheet (000) 　　　　　 2015 　 2016 　 2017 　 $ % of TA 　 $ %...

Dec 31 Industry Average Balance Sheet (000) 　　　　　 2015 　 2016 　 2017 　 $ % of TA 　 $ % of TA 　 $ % of TA 　 Assets Current assets Cash 1,512 6.81% 　 1,176 3.6% 　 1,097 2.3% 　 6% Accounts receivable 6,237 28.09% 　 10,271 31.2% 　 15,919 33.4% 　 20% Inventories 4,536 20.43% 　 7,838 23.8% 　 12,570 26.4% 　 31% Prepaid expenses 3,780 17.02% 　 5,140 15.6% 　 6,840 14.3% 　 5% Total current assets 16,065 72.35% 　 24,425 74.2% 　 36,426 76.4% 　 62% Gross fixed assets 6,300 28.37% 　 9,080 27.6% 　 12,918 27.1% 　 25% Less:...

Analysis of Stockholders' Equity The Stockholders' Equity section of the December 31, 2017, balance sheet of...

Analysis of Stockholders' Equity The Stockholders' Equity section of the December 31, 2017, balance sheet of Eldon Company appeared as follows: Preferred stock, $40 par value, 5,000 shares authorized, ? shares issued $200,000 Common stock, ? par, 10,000 shares authorized, 10,000 shares issued 100,000 Additional paid-in capital—Preferred 9,000 Additional paid-in capital—Common 800,000 Additional paid-in capital—Treasury stock 2,000 Total contributed capital $1,111,000 Retained earnings 39,000 Treasury stock, preferred, 100 shares (3,300) Total stockholders’ equity $ ? Required: Determine the following items...

The Stockholders’ Equity section of the balance sheet of Willy Corporation on January 1, 2016, is...

The Stockholders’ Equity section of the balance sheet of Willy Corporation on January 1, 2016, is shown below; selected transactions for the year follow: Stockholders’ Equity Preferred Stock (10% cumulative, $10 par value, 200,000 shares authorized) Issued and Outstanding, 7,300 Shares $ 73,000 Paid-in Capital in Excess of Par Value 7,300 $ 80,300 Common Stock (no-par value, $50 stated value, 130,000 shares authorized) Issued and Outstanding, 1,300 Shares 65,000 Paid-in Capital in Excess of Stated Value 2,600 67,600 Total...

MAJOR LEAGUE APPAREL Balance Sheet (Stockholders' Equity Section) December 31, 2018 Stockholders' equity: Preferred stock $570,000...

MAJOR LEAGUE APPAREL Balance Sheet (Stockholders' Equity Section) December 31, 2018 Stockholders' equity: Preferred stock $570,000 Common stock 110,000 Additional paid in capital 7,401,500 Total paid-in capital 8,081,500 Retained earnings Treasury stock Total stockholders' equity $8,081,500 Date General Journal Debit Credit December 01, 2018 Dividends Dividends payable Major League Apparel has two classes of stock authorized: 6%, $10 par preferred, and $1 par value common. The following transactions affect stockholders’ equity during 2018, its first year of operations: January 2...

Balance Sheet at Dec 31, 2019 &nbs

Balance Sheet at Dec 31, 2019 Assets 2019 2018 Cash $12,000 $33,750 Accounts Receivables 65,250 58,500 Inventories 30,000 24,000 Long term investments (FV-NI) 23,250 40,500 Equipment 30,000 18,750 Accumulated Depreciation- equipment (5,625) (2,250) Building 67,500 56,250 Accumulated Depreciation- building (13,500) (9,000) Land 32,500 32,500 Total Assets $241,375 $253,000 Liabilities & Shareholder’s Equities Accounts Payable 30,000 24,750 Accrued Payables 2,375 1,125 Income tax payable 1,000 1,500 Long term note payable 26,000 31,000 Common Shares, issued & outstanding 150,000 150,000 Retained Earnings...

Question