Question
In: Accounting
Mana Inc. had the following balances in its shareholders' equity at the beginning of the current...
Mana Inc. had the following balances in its shareholders' equity at the beginning of the current year (January 1, 2021):
Preferred shares ($ 1.50, cumulative*, 100,000 shares authorized, 5,000 shares issued) .................................................... $ 25,000
Common shares unlimited shares authorized, 8,000 shares issued ................ 160,000
Retained earnings............................................................................................... 92,000
Total shareholders' equity ................................................................................. $ 277,000 *two years of dividends are in arrears.
During the year ended December 31, 2021, the following transactions took place: 1. On January 1, issued 9,000 common shares at $ 18 per share. 2. On July 1, declared a 10% stock dividend on the common shares, market price $ 18.50 per share. The dividend is to be paid on August 15 to shareholders of record on July 31. 3. On August 15, the company paid the stock dividend. 4. On September 15, Ryder’s board of directors declared a 4-for-1 stock split. During the year, the company had a profit of $ 85,000. Instructions
a) Prepare the journal entries to record the above transactions. Closing entries are not required.
b) Prepare a statement of changes in shareholders’ equity for 2021.
c) Prepare the shareholders’ equity section of the balance sheet at December 31, 2021.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
On January 1, 2021, Gerlach Inc. had the following account balances in its shareholders' equity accounts....
On January 1, 2021, Gerlach Inc. had the following account
balances in its shareholders' equity accounts.
Common stock, $1 par, 252,000 shares issued
$
252,000
Paid-in capital—excess of par, common
504,000
Paid-in capital—excess of par, preferred
110,000
Preferred stock, $100 par, 11,000 shares outstanding
1,100,000
Retained earnings
2,200,000
Treasury stock, at cost, 5,200 shares
26,000
During 2021, Gerlach Inc. had several transactions relating to
common stock.
January
15:
Declared a property dividend of 100,000 shares of Slowdown
Company (book value...
On January 1, 2021, Gerlach Inc. had the following account balances in its shareholders' equity accounts....
On January 1, 2021, Gerlach Inc. had the following account
balances in its shareholders' equity accounts.
Common stock, $1 par, 257,000 shares issued
$
257,000
Paid-in capital—excess of par, common
514,000
Paid-in capital—excess of par, preferred
135,000
Preferred stock, $100 par, 13,500 shares outstanding
1,350,000
Retained earnings
2,700,000
Treasury stock, at cost, 5,700 shares
28,500
During 2021, Gerlach Inc. had several transactions relating to
common stock.
January
15:
Declared a property dividend of 100,000 shares of Slowdown
Company (book value...
On January 1, 2018, Gerlach Inc. had the following account balances in its shareholders' equity accounts....
On January 1, 2018, Gerlach Inc. had the following account
balances in its shareholders' equity accounts. Common stock, $1
par, 248,000 shares issued 248,000 Paid-in capital - excess of par,
common 496,000 Paid-in capital - excess of par, preferred 160,000
Preferred stock, $100 par, 16,000 shares outstanding 1,600,000
Retained earnings 3,200,000 Treasury stock, at cost, 4,800 shares
24,000 During 2018, Gerlach Inc. had several transactions relating
to common stock. January 15: Declared a property dividend of
100,000 shares of Slowdown...
On January 1, 2018, Gerlach Inc. had the following account balances in its shareholders' equity accounts....
On January 1, 2018, Gerlach Inc. had the following account
balances in its shareholders' equity accounts. Common stock, $1
par, 240,000 shares issued 240,000 Paid-in capital - excess of par,
common 480,000 Paid-in capital - excess of par, preferred 200,000
Preferred stock, $100 par, 20,000 shares outstanding 2,000,000
Retained earnings 4,000,000 Treasury stock, at cost, 4,000 shares
20,000 During 2018, Gerlach Inc. had several transactions relating
to common stock. January 15: Declared a property dividend of
100,000 shares of Slowdown...
On January 1, 2015, Thomson Inc. had the following account balances in its shareholders' equity accounts....
On January 1, 2015, Thomson Inc. had the following account
balances in its shareholders' equity accounts.
Common stock, $1 par, 250,000 shares issued of
which 3,000 Shares being held as treasury
stock
$250,000
Paid-in capital excess of par,
common
500,000
Preferred stock, $100 par, 10,000 shares
outstanding 1,000,000
Paid-in capital excess of par, preferred
100,000
Retained earnings
2,000,000
Treasury stock, at cost, 3,000 shares
15,000
...
On January 1, 2016, Gerlach Inc. had the following account balances in its shareholders' equity accounts....
On January 1, 2016, Gerlach Inc. had the following account
balances in its shareholders' equity accounts.
Common stock, $1 par, 250,000
shares issued
250,000
Paid-in capital—excess of par,
common
500,000
Paid-in capital—excess of par,
preferred
100,000
Preferred stock, $100 par,
10,000 shares outstanding
1,000,000
Retained earnings
2,000,000
Treasury stock, at cost, 5,000
shares
25,000
During 2016, Gerlach Inc. had several transactions relating to
common stock.
January 15:
Declared a property dividend of
100,000 shares of Slowdown
Company (book value $10...
On January 1, 2017, Thomson Inc. had the following account balances in its shareholders' equity accounts....
On January 1, 2017, Thomson Inc. had the following account balances
in its shareholders' equity accounts.
Common
stock, $1 par, 350,000 shares issued of
which
20,000 Shares being held as treasury stock
$350,000
Paid-in
capital excess of par, common
500,000
Preferred
stock, $100 par, 10,000 shares outstanding
1,000,000
Paid-in capital excess of par, preferred
100,000
Retained
earnings
2,000,000
Treasury
stock, at cost, 20,000 shares
60,000
During 2017, Thomson Inc. had several transactions relating to
common stock.
2/10...
At the beginning of 2015, Tyler Corporation had the following stockholders’ equity balances in its general...
At the beginning of 2015, Tyler Corporation had the following
stockholders’ equity balances in its general ledger:
Common Stock, $10 Par Value $2,500,000
Paid-In Capital in Excess of Par 1,500,000
Paid-In Capital, Treasury Stock 450,000
Paid-In Capital, Stock Options 200,000
Retained Earnings 5,000,000
Treasury Stock (15,000 shares) (300,000)
Total Stockholders’ Equity $9,350,000
The paid-in capital from stock options relates to options
granted on 1/1/07 to the CEO as incentive compensation. As of
1/1/15, the remaining expected benefit period is four...
At the beginning of 2020, Braun Corporation had the following stockholders’ equity balances in its general...
At the beginning of 2020, Braun Corporation had the following
stockholders’ equity balances in its general ledger:
Common Stock, $10 Par Value $400,000
Paid-In Capital in Excess of Par: Common $600,000
Paid-In Capital, Treasury Stock $5,000
Paid-In Capital, Stock Options $200,000
Retained Earnings $1,200,000
Treasury Stock (5,000 shares) $(100,000)
_____________________________________
Total Stockholders’ Equity $2,305,000
The paid-in capital from stock options relates to options granted
on 1/1/12 to the CEO as incentive compensation. As of 1/1/20, the
remaining expected...
At the beginning of 2020, Brown Corporation had the following stockholders’ equity balances in its general...
At the beginning of 2020, Brown Corporation had the following
stockholders’ equity balances in its general ledger:
Common Stock, $10 Par Value
$2,500,000
Paid-In Capital in Excess of Par: Common
1,500,000
Paid-In Capital, Treasury Stock
10,000
Paid-In Capital, Stock Options
40,000
Retained Earnings
3,000,000
Treasury Stock (10,000 shares)
(180,000)
Total
Stockholders’ Equity
$6,870,000
The paid-in capital from stock options relates to options
granted on 1/1/18 to the CEO as incentive compensation. As of
1/1/20, the remaining expected benefit period is...
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