Donnie Hilfiger has two classes of stock authorized: $1 par preferred and $0.01 par value common....

Donnie Hilfiger has two classes of stock authorized: $1 par preferred and $0.01 par value common. As of the beginning of 2018, 460 shares of preferred stock and 5,600 shares of common stock have been issued. The following transactions affect stockholders’ equity during 2018:

March 1 Issues 2,700 shares of common stock for $58 per share.

May 15 Purchase 560 shares of treasury stock for $51 per share.

July 10 Reissues 360 shares of treasury stock purchased on May 15 for $56 per share.

October 15 Issues 360 shares of preferred stock for $61 per share.

December 1 Declare a cash dividend on both common and preferred stock of $2.10 per share to all stockholders of record on December 15. (Hint: Dividends are not paid on treasury stock.)

December 31 Pay the cash dividends declared on December 1.

Donnie Hilfiger has the following beginning balances in its stockholders’ equity accounts on January 1, 2018: Preferred Stock, $460; Common Stock, $56; Additional Paid-in Capital, $84,000; and Retained Earnings, $33,700. Net income for the year ended December 31, 2018, is $14,000.

Record each of these transactions:

march 1 2018

may 15 2018

july 10 2018

oct 15 2018

dec 01 2018

dec 15 2018

dec 31 2018

Solutions

Expert Solution

Date	General Journal	Debit	Credit
March 1, 2018	Cash (2700 x $58)	156600
	Common stock (2700 x $0.01)		27
	Additional paid-in capital (common)		156573
	(To record issue of common stock)
May 15, 2018	Treasury stock (560 x $51)	28560
	Cash		28560
	(To record purchase of treasury stock)
July 10, 2018	Cash (360 x $56)	20160
	Treasury stock (360 x $51)		18360
	Additional paid-in capital (treasury stock)		1800
	(To record re-issue of treasury stock)
Oct 15, 2018	Cash (360 x $61)	21960
	Preferred stock (360 x $1)		360
	Additional paid-in capital (preferred)		21600
	(To record issue of preferred stock)
Dec 01, 2018	Dividend	18732
	Dividend payable		18732
	(To record declaration of cash dividend on common and preferred stock)
Dec 15, 2018	No journal entry required
Dec 31, 2018	Dividend payable	18732
	Cash		18732
	(To record payment of dividends)

Working:

Dividends:
Number of preferred stock (460 + 360)	820
Number of common stock (5600 + 2700 - 560 + 360)	8100
Total number of shares on which dividend declared	8920
Dividend per share	$ 2.10
Total dividend $	$ 18,732

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Donnie Hilfiger has two classes of stock authorized: $1 par preferred and $0.01 par value common....

Donnie Hilfiger has two classes of stock authorized: $1 par preferred and $0.01 par value common. As of the beginning of 2018, 200 shares of preferred stock and 3,600 shares of common stock have been issued. The following transactions affect stockholders’ equity during 2018: March 1 Issue 1,000 shares of common stock for $38 per share. May 15 Purchase 600 shares of treasury stock for $31 per share. July 10 Reissue 100 shares of treasury stock purchased on May 15...

Donnie Hilfiger has two classes of stock authorized: $1 par preferred and $0.01 par value common....

Donnie Hilfiger has two classes of stock authorized: $1 par preferred and $0.01 par value common. As of the beginning of 2018, 340 shares of preferred stock and 4,400 shares of common stock have been issued. The following transactions affect stockholders’ equity during 2018: March 1 Issues 1,500 shares of common stock for $46 per share. May 15 Purchase 440 shares of treasury stock for $39 per share. July 10 Reissues 240 shares of treasury stock purchased on May 15...

Donnie Hilfiger has two classes of stock authorized: $1 par preferred and $0.01 par value common....

Donnie Hilfiger has two classes of stock authorized: $1 par preferred and $0.01 par value common. As of the beginning of 2018, 200 shares of preferred stock and 2,800 shares of common stock have been issued. The following transactions affect stockholders’ equity during 2018: March 1 Issue 1,000 shares of common stock for $30 per share. May 15 Purchase 600 shares of treasury stock for $23 per share. July 10 Reissue 100 shares of treasury stock purchased on May 15...

Donnie Hilfiger has two classes of stock authorized: $1 par preferred and $0.01 par value common....

Donnie Hilfiger has two classes of stock authorized: $1 par preferred and $0.01 par value common. As of the beginning of 2021, 320 shares of preferred stock and 4,200 shares of common stock have been issued. The following transactions affect stockholders’ equity during 2021: March 1 Issue 1,300 shares of common stock for $44 per share. May 15 Purchase 420 shares of treasury stock for $37 per share. July 10 Resell 220 shares of treasury stock purchased on May 15...

JC, Inc., has two classes of stock authorized: $100.00 par preferred and $0.01 par value common....

JC, Inc., has two classes of stock authorized: $100.00 par preferred and $0.01 par value common. As of the beginning of 20XC, 1,000 shares of preferred stock and 700,000 shares of common stock have been issued. Record the following transactions to complete the Statement of Stockholders’ Equity: Effect on Stockholders’ Equity 1-Mar Issue 500 additional shares of preferred stock for $102.00 per share 1-Apr Issue 100,000 additional shares of common stock for $15 per share 1-Jun Declare a cash dividend...

Nautical has two classes of stock authorized: $10 par preferred, and $1 par value common. As...

Nautical has two classes of stock authorized: $10 par preferred, and $1 par value common. As of the beginning of 2018, 150 shares of preferred stock and 1,600 shares of common stock have been issued. The following transactions affect stockholders’ equity during 2018: March 1 Issue 1,600 additional shares of common stock for $19 per share. April 1 Issue 150 additional shares of preferred stock for $26 per share. June 1 Declare a cash dividend on both common and...

Major League Apparel has two classes of stock authorized: 6%, $10 par preferred, and $1 par value common.

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 2018, its first year of operations: January 2 Issue 110,000 shares of common stock for $67 per share. February 14 Issue 57,000 shares of preferred stock for $12 per share. May 8 Repurchase 11,000 shares of its own common stock for $57 per share. May 31 Reissue 5,500 shares of treasury stock for $62...

Major League Apparel has two classes of stock authorized: 6%, $10 par preferred, and $1 par value common.

Finishing Touches has two classes of stock authorized: 9%, $10 par preferred, and $1 par value...

Finishing Touches has two classes of stock authorized: 9%, $10 par preferred, and $1 par value common. The following transactions affect stockholders’ equity during 2021, its first year of operations: January 2 Issues 100,000 shares of common stock for $29 per share. February 6 Issues 2,400 shares of 9% preferred stock for $11 per share. September 10 Purchases 11,000 shares of its own common stock for $34 per share. December 15 Resells 5,500 shares of treasury stock at $39 per...

Finishing Touches has two classes of stock authorized: 9%, $10 par preferred, and $1 par value...

Finishing Touches has two classes of stock authorized: 9%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2018, its first year of operations: January 2 Issues 100,000 shares of common stock for $19 per share. February 6 Issues 1,400 shares of 9% preferred stock for $11 per share. September 10 Repurchases 11,000 shares of its own common stock for $24 per share. December 15 Reissues 5,500 shares of treasury stock at $29 per...

Subjects