Question

In: Accounting

. The Rostinaja Company is incorporated at the beginning of Year One. For convenience, assume that...

. The Rostinaja Company is incorporated at the beginning of Year One. For convenience, assume that the company earns a reported net income of $130,000 each year and pays an annual cash dividend of

$50,000. The company is authorized to issue 200,000 shares of $3 par value common stock. At the start of Year One, the company issues 40,000 shares of this common stock for $8 per share. At the end of Year

Two, the company buys back 5,000 shares of its own stock for $12 per share. The cost method is used to

record these shares. At the start of Year Three, the company reissues 1,000 of these shares for $14 per

share. At the start of Year Four, the company reissues the remainder of the treasury stock for $9 per share.

a. Prepare the stockholders equity section of this company’s balance sheet as of December 31, Year

One.

b. Prepare the stockholders’ equity section of this company’s balance sheet as of December 31, Year

Two.

c. Prepare the stockholders’ equity section of this company’s balance sheet as of December 31, Year

Three.

d. Prepare the stockholders’ equity section of this company’s balance sheet as of December 31, Year

Four.

Solutions

Expert Solution

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

One Product Corp. (OPC) incorporated at the beginning of last year. The balances on its post-closing...
One Product Corp. (OPC) incorporated at the beginning of last year. The balances on its post-closing trial balance prepared on December 31, at the end of its first year of operations, were: Cash $ 19,570 Accounts Receivable 8,270 Allowance for Doubtful Accounts 935 Inventory 12,760 Prepaid Rent 1,700 Equipment 31,000 Accumulated Depreciation 3,000 Accounts Payable 0 Sales Tax Payable 500 FICA Payable 600 Withheld Income Taxes Payable 500 Salaries and Wages Payable 1,600 Unemployment Tax Payable 300 Deferred Revenue 4,500...
One Product Corp. (OPC) incorporated at the beginning of last year. The balances on its post-closing...
One Product Corp. (OPC) incorporated at the beginning of last year. The balances on its post-closing trial balance prepared on December 31, at the end of its first year of operations, were: Cash $ 19,780 Accounts Receivable 8,350 Allowance for Doubtful Accounts 1,065 Inventory 14,580 Prepaid Rent 1,960 Equipment 46,600 Accumulated Depreciation 4,560 Accounts Payable 0 Sales Tax Payable 500 FICA Payable 600 Withheld Income Taxes Payable 500 Salaries and Wages Payable 1,600 Unemployment Tax Payable 300 Deferred Revenue 4,500...
General Journal Entries One Product Corp. (OPC) incorporated at the beginning of last year. The balances...
General Journal Entries One Product Corp. (OPC) incorporated at the beginning of last year. The balances on its postclosing trial balance prepared on December 31, at the end of its first year of operations, were:   Cash $ 19,500   Accounts Receivable 8,250   Allowance for Doubtful Accounts 885   Inventory 12,060   Prepaid Rent 1,600   Equipment 25,000   Accumulated Depreciation 2,400   Accounts Payable 0   Sales Tax Payable 500   FICA Payable 600   Withheld Income Taxes Payable 500   Salaries and Wages Payable 1,600   Unemployment Tax Payable 300...
Kinkaid Co. is incorporated at the beginning of this year and engages in a number of...
Kinkaid Co. is incorporated at the beginning of this year and engages in a number of transactions. The following journal entries impacted its stockholders’ equity during its first year of operations. General Journal Debit Credit a. Cash 290,000 Common Stock, $25 Par Value 230,000 Paid-In Capital in Excess of Par Value, Common Stock 60,000 b. Organization Expenses 150,000 Common Stock, $25 Par Value 128,000 Paid-In Capital in Excess of Par Value, Common Stock 22,000 c. Cash 44,500 Accounts Receivable 17,500...
Kinkaid Co. is incorporated at the beginning of this year and engages in a number of...
Kinkaid Co. is incorporated at the beginning of this year and engages in a number of transactions. The following journal entries impacted its stockholders’ equity during its first year of operations. General Journal Debit Credit a. Cash 280,000 Common Stock, $25 Par Value 230,000 Paid-In Capital in Excess of Par Value, Common Stock 50,000 b. Organization Expenses 190,000 Common Stock, $25 Par Value 129,000 Paid-In Capital in Excess of Par Value, Common Stock 61,000 c. Cash 43,500 Accounts Receivable 18,000...
Convenience Tech Shopping Ltd is a Namibian incorporated company specialising in providing online shopping via the...
Convenience Tech Shopping Ltd is a Namibian incorporated company specialising in providing online shopping via the internet. The company’s standard practice is to package a customer’s order for a price of $175. The company’s system operates as follows: i. Customers phone through their orders to the company representatives; ii. Company advises customer services offered and the cost thereof. For future reference purposes, all telephonic conversions are recorded; iii. iv. If the customer is agreeable to the terms provided by company...
Kinkaid Co. was incorporated at the beginning of this year and had a number of transactions....
Kinkaid Co. was incorporated at the beginning of this year and had a number of transactions. The following journal entries impacted its stockholders’ equity during its first year of operations. General Journal Debit Credit a. Cash 310,000 Common Stock, $25 Par Value 230,000 Paid-In Capital in Excess of Par Value, Common Stock 80,000 b. Organization Expenses 190,000 Common Stock, $25 Par Value 130,000 Paid-In Capital in Excess of Par Value, Common Stock 60,000 c. Cash 43,000 Accounts Receivable 18,000 Building...
1. In this problem, we assume for convenience that we consider call options for only one...
1. In this problem, we assume for convenience that we consider call options for only one share of a stock. We consider only one stock, and all options are for this stock. We denote the expiration date of the options by T, and we assume that it is the same date for all options considered below. We denote prices as pure numbers, omitting any notation for a currency such as the dollar sign. You may assume that the price C(K)...
Inline Incorporated manufactures skates and equipment for in-line skating. The company offers a one-year warranty on...
Inline Incorporated manufactures skates and equipment for in-line skating. The company offers a one-year warranty on all products. During 2014, the company recorded net sales of $4,127.8 million. Historically, about 3% of all sales are returned under warranty and the cost of repairing and or replacing goods under warranty is about 50% of retail value. Assume that at the start of the year Inline’s balance sheet included an accrued warranty liability of $15.4 million and at the end of the...
At the beginning of the year, Grillo Industries bought three used machines from Freeman Incorporated. The...
At the beginning of the year, Grillo Industries bought three used machines from Freeman Incorporated. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Machine A Machine B Machine C   Cost of the asset $ 9,300 $ 38,500 $ 22,300   Installation costs 950 2,400 1,500   Renovation costs prior to use 750 2,000 2,500   Repairs after production began 800 900 1,000 By the end of the first year,...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT