Question

In: Accounting

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 years; expense has been and will be recorded evenly over the benefit period.

The following events were among the many occurring in 2015:

a. January 2: Purchased 5,000 shares of its common stock for $16 per share. Taylor uses the cost method of accounting for treasury stock transactions.

b. February 1: Declared and distributed a 1% stock dividend on common stock outstanding when the market price of the stock was $24 per share.

c. April 1: Issued 20,000 shares of $50 par, noncumulative, convertible 6% preferred stock for $60 per share, where one share of preferred stock is convertible into three shares of common stock.

d. July 1: 2,000 shares of treasury stock that had been purchased in a prior year for $21 per share were re-issued for $22 per share.

e. August 1: Holders of 8,000 shares of the preferred stock converted their shares into common stock when the market value of the common stock was $22 per share. Taylor uses the book value method of accounting for conversions.

f. October 1: Declared and paid a cash dividend of $2 per share on the outstanding common stock.

g. November 1: Corrected an error that was made several years ago, when land that had been purchased for $100,000 was inadvertently expensed.

h. December 1: Declared and distributed a property dividend of land to preferred shareholders. The land had a fair value of $75,000 and a carrying value of $60,000.

i. December 31: Recorded 2017 compensation expense related to the stock options.

The 2015 Final Net Income, including the effects of any net income items listed above (and the 2015 tax effects on net income items), was $1,000,000. There were 500,000 shares authorized for both preferred and common stock. (OVER)

Required:

1. All journal entries for the items (a. through i.) above. No explanations. Ignore tax effects.

2. The 12/31/15 Stockholders’ Equity section. Use the format from the Frost Company example in Chapter 15 of the text.

Expert Solution

ekkarill92 answered 2 years ago

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...

the beginning of 2020, Browne Corporation had the following stockholders’ equity balances in its general ledger:...

the beginning of 2020, Browne Corporation had the following stockholders’ equity balances in its general ledger: Common Stock, $10 Par Value $500,000 Paid-In Capital in Excess of Par 1,500,000 In Capital, Treasury Stock 100,000 Paid-In Capital, Stock Options 80,000 Retained Earnings 100,000 Treasury Stock (15,000 shares) (270000) Total Stockholders’ Equity 2,010,000 The paid-in capital from stock options relates to options granted on 1/1/16 to the CEO as incentive compensation. As of 1/1/20, the remaining expected benefit period is three years;...

Carl Corporation has the following beginning balances in its stockholders’ equity accounts on January 1: Common...

Carl Corporation has the following beginning balances in its stockholders’ equity accounts on January 1: Common Stock ($1 Par), $15,000; Additional Paid-in Capital, $675,000; and Retained Earnings, $200,000. Carl has the following transactions affecting stockholders’ equity in the year. March 1 Issues 6,000 additional shares of $1 par value common stock for $50 per share. May 10 Repurchases 1,000 shares of treasury stock for $58 per share. June 21 Reissues 500 shares of treasury stock purchased on May 10 for...

Silver Dollar Corp. had the balances below on January 15, 2015, in its stockholders’ equity accounts....

Silver Dollar Corp. had the balances below on January 15, 2015, in its stockholders’ equity accounts. On that same day, the company declared a 2% stock dividend, when the stock had a current market value of $20 per share. The stock dividends are distributed on February 20, 2015. Prepare the journal entries required on each date. Common Stock, $2 par (100,000 shares issued) $ 200,000 Paid-In Capital in Excess of Par—Common Stock 470,000 Retained Earnings 1,060,000

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...

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...

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 ...

A Corporation had the following stock as part of its stockholders equity: -7%, $100 par Cumulative...

A Corporation had the following stock as part of its stockholders equity: -7%, $100 par Cumulative Preferred Stock, 45,000 shares authorized, 12,000 shares issued, 10,000 shares outstanding. - $8 par, Common Stock, 250,000 shares authorized, 140,000 shares issued, 110,000 shares outstanding. No dividends were declared in the past two years. In the current year, $300,000 is declared as dividend. The Dividend received by common shareholders will be: a. $90,000 b. $0 c. $216,000 d. $48,000

Problem 11-2A Fechter Corporation had the following stockholders’ equity accounts on January 1, 2015: Common Stock...

Problem 11-2A Fechter Corporation had the following stockholders’ equity accounts on January 1, 2015: Common Stock ($4 par) $431,680, Paid-in Capital in Excess of Par—Common Stock $223,430, and Retained Earnings $119,370. In 2015, the company had the following treasury stock transactions. Mar. 1 Purchased 6,770 shares at $8 per share. June 1 Sold 1,230 shares at $12 per share. Sept. 1 Sold 1,370 shares at $10 per share. Dec. 1 Sold 1,160 shares at $6 per share. Fechter Corporation uses...