Question

In: Accounting

Bush-Caine Company reported the following data on its December 31, 2015, balance sheet: Preferred stock, $50...

Bush-Caine Company reported the following data on its December 31, 2015, balance sheet:

Preferred stock, $50 par $50,000

Additional paid-in capital on preferred stock 4,000

Common stock, $10 par 100,000

Additional paid-in capital on common stock 80,000

Retained earnings 95,000

The following transactions were reported by the company during 2016:

1. Reacquired 200 shares of its preferred stock at $57 per share.

2. Reacquired 500 shares of its common stock at $16 per share.

3. Sold 100 shares of preferred treasury stock at $58 per share.

4. Sold 200 shares of common treasury stock at $17 per share.

5. Sold 100 shares of common treasury stock at $9 per share.

6. Retired the shares of common stock remaining in the treasury.

The company maintains separate treasury stock accounts and related additional paid-in capital accounts for each class of stock.

Required:

1. Prepare the journal entries required to record the treasury stock transactions using the cost method.

2. Assuming the company earned a net income in 2016 of $30,000 and declared and paid dividends of $10,000, prepare the shareholders’ equity section of its balance sheet at December 31, 2016.

Expert Solution

Hi

Please let me know in case you face any issue:

ekkarill92 answered 2 years ago

industries' balance sheet at December 31, 2015, is presented below. INDUSTRIES Balance Sheet December 31, 2015...

industries' balance sheet at December 31, 2015, is presented below. INDUSTRIES Balance Sheet December 31, 2015 Assets Current assets Cash $7,400 Accounts receivable 82,000 Finished goods inventory (1,500 units) 29,500 Total current assets 118,900 Equipment $39,500 Less: Accumulated depreciation 10,000 29,500 Total assets $148,400 Liabilities and Shareholders' Equity Liabilities Notes payable $24,500 Accounts payable 44,500 Total liabilities 69,000 Shareholders’ equity Common stock $49,500 Retained earnings 29,900 Total shareholders’ equity 79,400 ...

Lake Company reported the following summarized balance sheet data as of December 31, 20X2: Cash $...

Lake Company reported the following summarized balance sheet data as of December 31, 20X2: Cash $ 38,000 Accounts Payable $ 49,000 Accounts Receivable 87,000 Common Stock 130,000 Inventory 96,000 Retained Earnings 207,000 Buildings & Equipment 285,000 Less: Accumulated Depreciation (120,000) Total Assets $ 386,000 Total Liabilities & Equities $ 386,000 Lake issues 4,400 additional shares of its $10 par value stock to its shareholders as a stock dividend on April 20, 20X3. The market price of Lake’s shares at the...

. At December 31, 2018, Garvey Company reported this information on its balance sheet. Accounts...

. At December 31, 2018, Garvey Company reported this information on its balance sheet. Accounts Receivable $ 960,000 Less: Allowance for Doubtful Accounts 78,000 During 2019, the company had the following transactions related to receivables. 1. Sales on account $3,600,000 2. Sales returns and allowances 50,000 3. Collection of account receivables 3,100,000 4. Write-offs of account receivable deemed uncollectible 92,000 5. Recovery of bad debts previously written off as uncollectible 28,000 Instructions: (a) Prepare the journal entries to record each of these five transactions. Assume that...

ROK Corporation's December 31, 2010 balance sheet showed the following: Preferred Stock - $150,000 Common Stock...

ROK Corporation's December 31, 2010 balance sheet showed the following: Preferred Stock - $150,000 Common Stock - $400,000 Paid-in Capital excess of par value - preferred stock - $80,000 Paid-in Capital excess of par value-common stock - $800,000 Retained Earnings - $1,500,000 Treasury stock - $150,000 1. What is the total amount of Paid-in Capital as of December 31? 2. What is the total amount of Stockholders' Equity as of December 31? 3. Which of the following statements is TRUE regarding...

From the following, prepare a classified balance sheet for Ranger Company as of December 31, 2015....

From the following, prepare a classified balance sheet for Ranger Company as of December 31, 2015. Ending merchandise inventory was $4,000 for the year. Cash $ 6,000 Accounts payable $ 1,800 Prepaid rent 1,600 Salaries payable 1,600 Prepaid insurance 4,000 Note payable (long term) 8,000 Office equipment (net) 5,000 J. Lowell, capital* 9,200 *What the owner supplies to the business. Replaces common stock and retained earnings section. RANGER COMPANY Balance Sheet December 31, 2015 Assets Liabilities Current assets: Current liabilities:...

On December 31, Starstruck Corporation reported, on its balance sheet, the following (in millions): Total assets...

On December 31, Starstruck Corporation reported, on its balance sheet, the following (in millions): Total assets $14,329.5 Total stockholders’ equity $5,890.7 Total current liabilities $4,546.9 What did Starstruck report as total liabilities on December 31? Select one: a. None of the these are correct. b. $15,673.3 million c. $9,782.6 million d. $8,439.8 million e. $3,891.9 million

A) On December 31, 2017, SPK Corp reported the following information on its balance sheet: Accounts...

A) On December 31, 2017, SPK Corp reported the following information on its balance sheet: Accounts Receivable $900,000 Less: Allowance for Doubtful Accounts 54,000 (credit) During 2018, the company had the following transactions: Sales on account $3,000,000 Collections of accounts receivables 2,850,000 Write-off of accounts deemed uncollectible 60,000 Recovery of Bad debts previously written off 12,000 (not included in collections above) If bad debts are estimated to be 1.5% of credit sales, determine the ending balance in the Allowance for Doubtful Accounts...

Included in the December 31, 2015, Jacobi Company balance sheet was the following shareholders’ equity section:...

Included in the December 31, 2015, Jacobi Company balance sheet was the following shareholders’ equity section: Jacobi Company Balance Sheet (Shareholders' Equity) December 31, 2015 1 Contributed Capital: 2 Preferred stock, 6%, $100 par $200,000.00 3 Additional paid-in capital on preferred stock 12,000.00 $212,000.00 4 Common stock, $5 par $150,000.00 5 Additional paid-in capital on common stock 240,000.00 390,000.00 6 Total contributed capital $602,000.00 7 Retained earnings 627,000.00 8 Accumulated other comprehensive income (loss): 9 Unrealized decrease in value of...

20. Following are balance sheet amounts for Carolina Company as of 12/31/17: Preferred Stock

20. Following are balance sheet amounts for Carolina Company as of 12/31/17: Preferred Stock $ 200,000 Common Stock 300,000 Paid-In Capital in Excess of Par - Preferred 200,000 Paid-In Capital in Excess of Par - Common 400,000 Retained Earnings 500,000 Treasury Stock 100,000 Paid In Capital from Treasury Stock 50,000 Given the above what is total paid in capital? Select one: a. $1,150,000 b. $1,100,000 c. $1,000,000 d. $ 600,000 e. $ 650,000 21. A corporation issued...

The following data are provided: December 31, 2021 2020 5% Cumulative preferred stock, $50 par $105000...

The following data are provided: December 31, 2021 2020 5% Cumulative preferred stock, $50 par $105000 $105000 Common stock, $10 par 130000 93000 Additional paid-in capital 78000 72000 Retained earnings (includes current year net income) 255000 214000 Net income 50000 Additional information: On May 1, 2021, 5200 shares of common stock were issued. The preferred dividends were not declared during 2021. The market price of the common stock was $50 at December 31, 2021. The book value per share of...