Question
In: Accounting
On January 1, 2022, Larkspur, Inc. had these stockholders’ equity balances. Common Stock, $1 par (2,200,000...
On January 1, 2022, Larkspur, Inc. had these stockholders’ equity balances. Common Stock, $1 par (2,200,000 shares authorized, 675,000 shares issued and outstanding) $675,000 Paid-in Capital in Excess of Par Value 1,440,000 Retained Earnings 703,000 Accumulated Other Comprehensive Income 47,000 During 2022, the following transactions and events occurred. 1. Issued 47,500 shares of $1 par value common stock for $4 per share. 2. Issued 57,000 shares of common stock for cash at $6 per share. 3. Purchased 22,100 shares of common stock for the treasury at $3.40 per share. 4. Declared and paid a cash dividend of $113,000. 5. Earned net income of $407,000. 6. Had other comprehensive income of $17,400. Prepare the stockholders’ equity section of the balance sheet at December 31, 2022.
Solutions
Expert Solution
| No | General Journal | Debit | Credit |
| 2022 | |||
| 1) | Cash (47,500 shares * $ 4 ) | $ 190,000 | |
| Common stock (47,500 shares *$ 1 ) | $ 47,500 | ||
| Paid in Capital in excess of Par value-Common Stock (47,500 shares*$3) | $ 142,500 | ||
| (To record issues of Common stock 47,500 shares @ $ 4 per share ) | |||
| 2) | Cash (57,000 shares * $ 6 ) | $ 342,000 | |
| Common stock (57,000 shares *$ 1 ) | $ 57,000 | ||
| Paid in Capital in excess of Par value-Common Stock (57,000 shares*$5) | $ 285,000 | ||
| (To record issues of Common stock 57,000 shares @ $ 6 per share ) | |||
| 3) | Treasury Stock (22,100 shares * $ 3.40 ) | $ 75,140 | |
| Cash | $ 75,140 | ||
| (To record Purchase of Treasury stock 22,100 shares @ 3.40 per share ) | |||
| 4) | Retained Earnings | $ 113,000 | |
| Cash | $ 113,000 | ||
| (To record declared and paid Cash dividends ) | |||
| 5) | Income Summary | $ 407,000 | |
| Retained earnings | $ 407,000 | ||
| (To record Net income transferred to Retained earnings ) |
| Larkspur Inc. | |
| Stockholder's Equity Section | |
| As on December 31,2022 | |
| Stockholders Equity : | |
| Paid in capital : | |
| Capital Stock : | |
| Common Stock ,$1 Par (2,200,000 shares authorized ,801,600 shares issued and 779,500 Outstanding) | $ 779,500 |
| Additional Paid in capital : | |
| Paid in capital in excess of Par value -Common stock (1,440,000+142,500+285,000) | $ 1,867,500 |
| Total Paid in Capital | $ 2,647,000 |
| Retained earnings ($703,000-$113,000+$ 407,000) | $ 997,000 |
| Total Paid in Capital and Retained Earnings | $ 3,644,000 |
| Less: Treasury Stock (22,100 shares *$ 3.40 per share ) | ($ 75,140 ) |
| Stockholders Equity | $ 3,568,860 |
ekkarill92 answered 2 years agoRelated Solutions
On January 1, 2022, Sage Hill Inc. had these stockholders’ equity balances. Common Stock, $1 par...
On January 1, 2022, Sage Hill Inc. had these stockholders’
equity balances.
Common Stock, $1 par (2,500,000 shares authorized, 650,000 shares
issued and outstanding) $650,000
Paid-in Capital in Excess of Par Value 1,420,000
Retained Earnings 698,000 Accumulated Other Comprehensive Income
50,000
During 2022, the following transactions and events occurred.
1. Issued 46,500 shares of $1 par value common stock for $2 per
share.
2. Issued 61,000 shares of common stock for cash at $6 per
share.
3. Purchased 22,500 shares...
On January 1, 2022, Riverbed Corp. had these stockholders’ equity accounts. Common Stock ($10 par value,...
On January 1, 2022, Riverbed Corp. had these stockholders’
equity accounts. Common Stock ($10 par value, 71,500 shares issued
and outstanding) $715,000 Paid-in Capital in Excess of Par Value
486,500 Retained Earnings 665,000 During the year, the following
transactions occurred. Jan. 15 Declared a $0.60 cash dividend per
share to stockholders of record on January 31, payable February 15.
Feb. 15 Paid the dividend declared in January. Apr. 15 Declared a
10% stock dividend to stockholders of record on April...
On January 1, 2022, Tacoma Corporation had these stockholders’ equity accounts. Common Stock ($10 par value,...
On January 1, 2022, Tacoma Corporation had these stockholders’
equity accounts.
Common Stock ($10 par value, 70,000
shares issued and outstanding)
$700,000
Paid-in Capital in Excess of Par
Value
500,000
Retained Earnings
620,000
During the year, the following transactions occurred.
Jan.
15
Declared a $0.50 cash dividend per
share to stockholders of record on January 31, payable February
15.
Feb.
15
Paid the dividend declared in
January.
Apr.
15
Declared a 10% stock dividend to
stockholders of record on April...
On January 1, 2022, Bridgeport Corp. had these stockholders’ equity accounts. Common Stock ($10 par value,...
On January 1, 2022, Bridgeport Corp. had these stockholders’
equity accounts. Common Stock ($10 par value, 66,500 shares issued
and outstanding) $665,000 Paid-in Capital in Excess of Par Value
481,500 Retained Earnings 615,000 During the year, the following
transactions occurred. Jan. 15 Declared a $0.40 cash dividend per
share to stockholders of record on January 31, payable February 15.
Feb. 15 Paid the dividend declared in January. Apr. 15 Declared a
10% stock dividend to stockholders of record on April...
On January 1, 2022, Marigold Corp. had these stockholders’ equity accounts. Common Stock ($10 par value,...
On January 1, 2022, Marigold Corp. had these stockholders’
equity accounts.
Common Stock ($10 par value, 68,500
shares issued and outstanding)
$685,000
Paid-in Capital in Excess of Par
Value
483,500
Retained Earnings
635,000
During the year, the following transactions occurred.
Jan.
15
Declared a $0.70 cash dividend per
share to stockholders of record on January 31, payable February
15.
Feb.
15
Paid the dividend declared in
January.
Apr.
15
Declared a 10% stock dividend to
stockholders of record on April...
On January 1, 2022, Blue Spruce Corp. had these stockholders’ equity accounts. Common Stock ($10 par...
On January 1, 2022, Blue Spruce Corp. had these stockholders’
equity accounts.
Common Stock ($10 par value, 72,500 shares issued and
outstanding)
$655,000
Paid-in Capital in Excess of Par Value
480,500
Retained Earnings
605,000
During the year, the following transactions occurred.
Jan.
15
Declared a $0.60 cash dividend per share to stockholders of
record on January 31, payable February 15.
Feb.
15
Paid the dividend declared in January.
Apr.
15
Declared a 10% stock dividend to stockholders of record on...
On January 1, 2017, Indigo Corporation had these stockholders’ equity accounts. Common Stock ($ 10 par...
On January 1, 2017, Indigo Corporation had these stockholders’
equity accounts.
Common Stock ($ 10 par value, 81,500 shares issued and
outstanding)
$ 815,000
Paid-in Capital in Excess of Par Value
503,000
Retained Earnings
635,000
During the year, the following transactions occurred.
Jan.
15
Declared a $ 0.40 cash dividend per share to stockholders of
record on January 31, payable February 15.
Feb.
15
Paid the dividend declared in January.
Apr.
15
Declared a 10% stock dividend to stockholders of...
On January 1, 2017, Concord Corporation had these stockholders’ equity accounts. Common Stock ($ 10 par...
On January 1, 2017, Concord Corporation had these stockholders’
equity accounts.
Common Stock ($ 10 par value, 75,500 shares issued
and outstanding)
$ 755,000
Paid-in Capital in Excess of Par Value
484,500
Retained Earnings
685,000
During the year, the following transactions occurred.
Jan.
15
Declared a $ 0.40 cash dividend per share to stockholders of
record on January 31, payable February 15.
Feb.
15
Paid the dividend declared in January.
Apr.
15
Declared a 10% stock dividend to stockholders of
record on...
On January 1, 2017, Concord Corporation had these stockholders’ equity accounts. Common Stock ($ 10 par...
On January 1, 2017, Concord Corporation had these stockholders’
equity accounts.
Common Stock ($ 10 par value, 75,500 shares issued
and outstanding)
$ 755,000
Paid-in Capital in Excess of Par Value
484,500
Retained Earnings
685,000
During the year, the following transactions occurred.
Jan.
15
Declared a $ 0.40 cash dividend per share to stockholders of
record on January 31, payable February 15.
Feb.
15
Paid the dividend declared in January.
Apr.
15
Declared a 10% stock dividend to stockholders of
record on...
Roman Company had the following stockholders’ equity as of January 1, 2010. Common Stock, $2 par...
Roman Company had the following stockholders’ equity as of
January 1, 2010.
Common Stock, $2 par value, 50,000 shares
issued
$100,000
Paid-in capital in excess of
par
$300,000
Paid-in capital Treasury
Stock
$ 1,000
Retained
earnings
$319,000
Total stockholder’s equity
$720,000
During 2010, the following transactions occurred:
Jan 31 Roman issued
5,000 shares of common stock at $10 per share.
Feb 25 Roman repurchased
1,900 shares of treasury stock at a price of $18 per share.
Mar 2 1,200...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Modern; The Accordionist by Pablo Picasso aritst 1How is it inspiring? 2In what way is it...
- Which of the following is not a router component? Group of answer choices RAM NVRAM Flash...
- A risk-free investment of $5000 will return 3%. A risky $5000 investment has a 23% chance...
- Assume that attributes with the same name in different relations represent the same domain and that...
- JAVA: Use existing Java Stack class to solve the "Balancing Symbols" problem. The symbols are (),...
- K-NN and Perceptron theory question If we don’t care about the size of the TRAINING SET...
- Make a C program that simulates time-sharing in the operating system. Please follow the instructions provided:...
ADVERTISEMENT