Question
In: Accounting
Prepare the stockholders’ equity section as of April 30, 2020. Net income for the first 4 months of 2020 was $130,000.
VII Cortex Corporation had the following stockholders’ equity as of January 1, 2020:
Common stock, $5 par value, 20,000 shares issued $100,000
Paid-in Capital in Excess of Par – Common Stock 300,000
Retained earnings 320,000
Total Stockholders’ Equity $720,000
During 2020, the following transactions occurred:
Feb. 20 Cortex repurchased 2,400 shares of treasury stock at a price of $19 per share.
Mar. 11 800 shares of treasury stock repurchased above were reissued at $17 per share.
Mar. 21 500 shares of treasury stock repurchased above were reissued at $14 per share.
Apr. 11 600 shares of treasury stock repurchased above were reissued at $20 per share.
April 25 The remaining shares of treasury stock were retired.
Required:
- (a) Prepare the stockholders’ equity section as of April 30, 2020. Net income for the first 4 months of 2020 was $130,000. Please include both Cost and Par value methods.
Solutions
Expert Solution
| COST METHOD | ||
| Working Note: | for Calculation of Additional paid-in capital: | |
| Date | Particulars | Amount (in $) |
| Jan, 1 | Addditional Paid-in capital balance | 300,000 |
| Feb, 20 | 2400 Treasury stock repurchased at $19 per share | - |
| Mar, 11 | 800 Treasury stock reissued at $17 per share (800*2) | (1600) |
| Mar, 21 | 500 Treasury stock reissued at $14 per share (500*5) | (2500) |
| Apr, 11 | 600 Treasury stock reissued at $20 per share (600*1) | 600 |
| Apr, 25 | remaining treasuer stocks i.e. 500 were retired 500*(19-5) | (7000) |
| additional paid-in capital as on 30 april | 289,500 | |
| Stakeholders' Equity as on april 30, 2020 | ||
| Particulars | Amount (in $) | |
| Common stock (20000-500 treasury stock retired) @$5 par value | 97,500 | |
| additional paid-in capital (as per the above working) | 289,500 | |
| Retained Earnings ($320,000 + $130,000) | 450,000 | |
| 837,000 |
| PAR VALUE METHOD | ||
| Working Note: | for Calculation of additional paid-in capital: | |
| Date | Particulars | Amount (in $) |
| Jan, 1 | Addditional Paid-in capital balance | 300,000 |
| Feb, 20 | 2400 Treasury stock repurchased at $19 per share ( 2400*14) | (33,600) |
| Mar, 11 | 800 Treasury stock reissued at $17 per share (800*12) | 9600 |
| Mar, 21 | 500 Treasury stock reissued at $14 per share (500*9) | 4500 |
| Apr, 11 | 600 Treasury stock reissued at $20 per share (600*15) | 9000 |
| Apr, 25 | remaining treasuer stocks i.e. 500 were retired | - |
| additional paid-in capital as on 30 april | 289,500 |
Note: At the time of original issue of common stock ; par value was $ 5 and the additional paid-in value was $15. so at the time treasury stock, additional paid-in capital can be debited upto $15.
| Stakeholders' Equity as on april 30, 2020 | |
| Particulars | Amount (in $) |
| Common stock (20000-500treasury stock retired) @$5 par value | 97,500 |
| additional paid-in capital (as per the above working) | 289,500 |
| Retained Earnings ($320,000 + $130,000) | 450,000 |
| 837,000 |
ekkarill92 answered 2 years agoRelated Solutions
Reporting Stockholders' Equity Using the following accounts and balances, prepare the Stockholders' Equity section of the...
Reporting Stockholders' Equity
Using the following accounts and balances, prepare the
Stockholders' Equity section of the balance sheet using Method 1 of
Exhibit 8. 100,000 shares of common stock authorized, and 10,000
shares have been reacquired.
Common Stock, $50 par
$3,500,000
Paid-In Capital from Sale of Treasury Stock
70,000
Paid-In Capital in Excess of Par—Common Stock
630,000
Retained Earnings
1,855,000
Treasury Stock
32,000
Stockholders' Equity
Paid-In Capital:
Common Stock, $50 Par
$
$
Total Paid-in Capital
$
Total
$
Total...
The stockholders’ equity section of Jun Company’s balance sheet as of April 1 follows. On April...
The stockholders’ equity section of Jun Company’s balance sheet
as of April 1 follows. On April 2, Jun declares and distributes a
10% stock dividend. The stock’s per share market value on April 2
is $25 (prior to the dividend).
Common stock—$5 par value, 455,000 shares
authorized, 240,000 shares issued and outstanding$1,200,000
Paid-in capital in excess of par value, common stock 570,000
Retained earnings 873,000
Total stockholders' equity$2,643,000
Prepare the stockholders’ equity section immediately after the
stock dividend.
The stockholders’ equity section of Jun Company’s balance sheet as of April 1 follows. On April...
The stockholders’ equity section of Jun Company’s balance sheet
as of April 1 follows. On April 2, Jun declares and distributes a
20% stock dividend. The stock’s per share market value on April 2
is $15 (prior to the dividend).
Common stock—$5 par value,
475,000 shares authorized, 250,000 shares issued and
outstanding
$
1,250,000
Paid-in capital in excess of par
value, common stock
590,000
Retained earnings
883,000
Total stockholders' equity
$
2,723,000
Prepare the stockholders’...
DeZurik Corp. had the following stockholders’ equity section in its June 30, 2020, balance sheet (in...
DeZurik Corp. had the following stockholders’ equity section in
its June 30, 2020, balance sheet (in thousands, except share and
per share amounts):
June 30 (in thousands)
2020
2019
Paid-in capital:
$4.50 Preferred stock, $ ? par value, cumulative, 150,000 shares
authorized, 64,000 shares issued and outstanding
$
5,760
Common stock, $5 par value, 4,000,000 shares authorized,
1,640,000 shares issued, 1,500,000 shares outstanding
Additional paid-in capital on common stock
22,960
Retained earnings
Less: Treasury common stock, at cost, ? shares...
Stockholders’ Equity Section Use the information presented in the table and shown below to prepare the...
Stockholders’ Equity Section Use the information presented in
the table and shown below to prepare the stockholders’ equity
section of ABC Company's balance sheet at December 31, 2017. At
December 31, 2017, ABC Company had the following number of common
and preferred shares. Common Preferred Authorized 600,000 60,000
Issued 200,000 10,000 Outstanding 190,000 10,000 The dividends on
preferred stock are $4 cumulative. In addition, the preferred stock
has a preference in liquidation of $50 per share.
Required information Problem 10-6A Record equity transactions and prepare the stockholders' equity section (LO10-2, 10-3, 10-4,...
Required information
Problem 10-6A Record equity transactions and prepare the
stockholders' equity section (LO10-2, 10-3, 10-4, 10-5, 10-7)
[The following information applies to the questions
displayed below.]
Major League Apparel has two classes of stock authorized: 5%,
$10 par preferred, and $1 par value common. The following
transactions affect stockholders’ equity during 2021, its first
year of operations:
January
2
Issue 100,000 shares of common stock for $58 per share.
February
14
Issue 48,000 shares of preferred stock for $11...
Required information Problem 10-6A Record equity transactions and prepare the stockholders' equity section (LO10-2, 10-3, 10-4,...
Required information
Problem 10-6A Record equity transactions and prepare the
stockholders' equity section (LO10-2, 10-3, 10-4, 10-5, 10-7)
[The following information applies to the questions
displayed below.]
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 2021, its first
year of operations:
January
2
Issue 110,000 shares of common stock for $57 per share.
February
14
Issue 47,000 shares of preferred stock for $12...
Prepare the Paid-In Capital portion of the Stockholders’ Equity section of the balance sheet using Method...
Prepare the Paid-In Capital portion of the Stockholders’
Equity section of the balance sheet using Method 1
of
Exhibit 8
. There are 375,000 shares of common stock authorized
and 85,000 shares of preferred stock authorized. Refer to
the Amount Descriptions list provided for the exact wording of the
answer choices for text entries.
Point Loma Group Inc.
Stockholders’ Equity (Paid-In Capital Section)
October 31, 20XX
1
Paid-in capital:
2
3
4
5
6
7
8
9
The following accounts...
Using the following accounts and balances, prepare the stockholders' equity section of the balance sheet. Fifty...
Using the following accounts and balances, prepare the
stockholders' equity section of the balance sheet. Fifty thousand
shares of common stock are authorized, and 1,500 shares have been
reacquired. Common Stock, $50 par $1,950,000 Paid-In Capital in
Excess of Par 162,050 Paid in Capital from Sale of Treasury Stock
6,050 Retained Earnings 117,000 Treasury Stock 4,550 Stockholders'
Equity Contributed capital: $ Total contributed capital $ Total $
Treasury stock Total stockholders' equity $
Prepare an income statement for the year ended April 30, 2019.
The revenues and expenses of Chickadee Travel Service for the year ended April 30, 2019, follow:Fees earned $263,200Miscellaneous expense 12,950Office expense 63,000Wages expense 131,700Prepare an income statement for the year ended April 30, 2019.
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- A textbook of mass 2.08 kg rests on a frictionless, horizontal surface. A cord attached to...
- Describe a time when someone did not really listen to or understand a point you were...
- Enumerations Create an advanced enumeration to represent months (JANUARY – DECEMBER) called enuMonths Add internal properties...
- What is the minimum size of the automorphism group of a simple directed graph having more...
- The birthday paradox says that the probability (chance) that two people in a room will have...
- #include <iostream> #include "lib.hpp" using namespace std; int main() { // declare the bool bool...
- Why do we compare means instead of individual scores? for comparing average SAT test scores across...
ADVERTISEMENT