Question

In: Accounting

Reporting Stockholders' Equity Bonner Company began business this year and immediately sold 600,000 common shares for...

Reporting Stockholders' Equity

Bonner Company began business this year and immediately sold 600,000 common shares for $19,500,000 cash and paid $1,000,000 in common dividends. At midyear, the firm bought back some of its own shares. The company reports the following additional information at year-end:

Net income $5,600,000
Common stock, at par $4,200,000
Retained earnings beginning of year $0
Common shares authorized: 1,000,000
Common shares outstanding at year’s end: 525,000

a. What was the average sales price of a common share when issued? Round to two decimal places.
$Answer

b. What is the par value of the common?
$Answer

c. How much is in the Additional paid-in capital account at the end of the year?
$Answer

d. Determine the retained earnings amount at the end of the year.
$Answer

e. How many shares of stock are in the treasury at the end of the year?
Answer

f. Compute BEPS. Round to two decimal places.
$Answer

Solutions

Expert Solution

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

1 A company began the year with Assets of $200,000, Liabilities of $40,000 and Stockholders' equity...
1 A company began the year with Assets of $200,000, Liabilities of $40,000 and Stockholders' equity of $160,000. During the year Assets increased $110,000 and stockholders' equity increased $50,000. What was the change in Liabilities for the year? Answer__________________ .2 At the end of last year, the company's assets totaled $1,720,000 and its liabilities totaled $1,480,000. During the current year, the company's total assets increased by $120,000 and its total liabilities increased by $48,000. At the end of the current...
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 portion of Brimstone Tire Company follows: Common Stock (2 million shares at $10...
The stockholders' equity portion of Brimstone Tire Company follows: Common Stock (2 million shares at $10 par) Capital in excess of par Retained earnings Total $ 20,000,000 $ 17,000,000 $ 33,00,000 $70,000,000       The current market value of Brimstone's stock is $25. Show what the balance sheet will look like if Brimstone declares a 5% stock dividend.
An all-equity company has common and preferred shares. There are 250,000 common shares outstanding with a...
An all-equity company has common and preferred shares. There are 250,000 common shares outstanding with a price of $31.30 per share and with an expectation to continue to provide a dividend of $4.75 per share. There are 50,000 preferred shares outstanding, with a 3.10% dividend, $100 par value per share, and $61.80 market value per share. Given this information, what is the company's WACC? a) 13.53 % b) 12.91% c) 13.22 % d) 12.61 % e)12.30 %
The shareholders’ equity account for Kowloonia Trust is shown here: Common Stocks (1,000 shares outstanding) $600,000...
The shareholders’ equity account for Kowloonia Trust is shown here: Common Stocks (1,000 shares outstanding) $600,000 Retained Earning                                        $790,000 Total    $1,390,000 a) If Kowloonia declares a three-for-one stock split, how many shares will be outstanding? Show how the equity accounts will change. b) If Kowloonia declares a one-for-four reverse stock split, how many shares will be outstanding? Show how the equity accounts will change.
Nichols Corporation began the year 2015 with 40,000 shares of common stock and 10,000 shares of...
Nichols Corporation began the year 2015 with 40,000 shares of common stock and 10,000 shares of convertible preferred stock outstanding. On May 1, an additional 18,000 shares of common stock were issued. On July 1, the 12,000 shares of common stock were acquired for the treasury. On September 1, the 12,000 treasury shares of common stock were reissued. The preferred stock has a $4 per share dividend rate, and each share may be converted into 2 shares of common stock....
Maple Company has total assets of $1,230,000, long-term debt of$300,000, stockholders' equity of $600,000, and...
Maple Company has total assets of $1,230,000, long-term debt of $300,000, stockholders' equity of $600,000, and current liabilities of $330,000. The dividend payout ratio is 40 percent and the profit margin is 12 percent. Assume all assets and current liabilities change spontaneously with sales and the firm is currently operating at full capacity. What is the external financing need if the current sales of $1,500,000 are projected to increase by 15 percent?$10,800.00$14,500.00$17,600.00$20,400.00$8,400.00
Randy Company has 600,000 shares of common stock outstanding. Each share of common stock has a...
Randy Company has 600,000 shares of common stock outstanding. Each share of common stock has a par value of $10. Please prepare journal entries to record the following INDEPENDENT transactions: 1. Randy’s directors declare a 10% stock dividend on September 1, 2019. On that date, the stock is trading on the market at $30 per share. 2. Randy purchases 1,000 of its outstanding shares on January 10, 2019 for $20 per share. 3. On April 1, 2019, Randy reissues 2,000...
Randy Company has 600,000 shares of common stock outstanding. Each share of common stock has a...
Randy Company has 600,000 shares of common stock outstanding. Each share of common stock has a par value of $10. Please prepare journal entries to record the following INDEPENDENT transactions: 1. Randy’s directors declare a 10% stock dividend on September 1, 2019. On that date, the stock is trading on the market at $30 per share. 2. Randy purchases 1,000 of its outstanding shares on January 10, 2019 for $20 per share. 3. On April 1, 2019, Randy reissues 2,000...
1)Gamma reported $600,000 net income for the year with 100,000 common shares outstanding all year. It...
1)Gamma reported $600,000 net income for the year with 100,000 common shares outstanding all year. It also had 50,000 shares of $100 par, 8% convertible preferred shares outstanding all year. Each preferred share is convertible into 10 shares of common stock. Determine basic and diluted EPS. 2)Alpha reported net income of $500,000 for the year. It has 200,000 shares of common stock outstanding all year. Two years ago the company granted 20,000 stock options that allow employees to purchase shares...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT