Question
In: Accounting
The stockholders' equity section of Night Corporation's balance sheet at January 1 follows: Common stock, $3...
The stockholders' equity section of Night Corporation's balance sheet at January 1 follows:
| Common stock, $3 par value, 300,000 shares authorized, 60,000 shares | 180,000 | |
| issued, 6,000 shares in treasury | ||
| Additional paid-in capital | ||
| In excess of par value | 240,000 | |
| From treasury stock | 15,000 | 255,000 |
| Retained earnings | 174,000 | |
| 609,000 | ||
| Less: Treasury stock (6,000 shares) at cost | 69,000 | |
| Total Stockholders’ Equity | 540,000 |
The following transactions affecting stockholders’ equity occurred during the year:
| Jan. | 8 | Issued 15,000 shares of previously unissued common stock for $10 cash per share. |
| Mar. | 12 | Sold all of the treasury shares for $14 cash per share. |
| June | 30 | Declared a five percent stock dividend on all outstanding shares of common stock. The market value of the stock was $12 per share. |
| July | 10 | Issued the stock dividend declared on June 30. |
| Oct. | 7 | Acquired 2,500 shares of common stock as treasury stock at $13 cash per share. |
| Dec. | 18 | Declared a cash dividend of $1.00 per outstanding common share, payable on January 9 to stockholders of record on December 31. |
Required
a. Prepare journal entries to record the foregoing
transactions.
b. Prepare a statement of stockholders equity. Net income for
the year is $170,500.
Use negative signs with your answers when appropriate (reduction to
retained earnings, acquired treasury stock and treasury stock
balances).
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Stockholders' Equity: Transactions and Statement The stockholders' equity section of Night Corporation's balance sheet at January...
Stockholders' Equity: Transactions and
Statement
The stockholders' equity section of Night Corporation's balance
sheet at January 1 follows:
Common stock, $10 par value, 300,000 shares authorized, 60,000
shares
600,000
issued, 6,000 shares in treasury
Additional paid-in capital
In excess of par value
960,000
From treasury stock
60,000
1,020,000
Retained earnings
696,000
2,316,000
Less: Treasury stock (6,000 shares) at cost
276,000
Total Stockholders’ Equity
2,040,000
The following transactions affecting stockholders’ equity
occurred during the year:
Jan.
8
Issued 15,000 shares of...
Stockholders' Equity: Transactions and Statement The stockholders' equity section of Night Corporation's balance sheet at January...
Stockholders' Equity: Transactions and
Statement
The stockholders' equity section of Night Corporation's balance
sheet at January 1 follows:
Common stock, $8 par value, 300,000 shares authorized, 60,000
shares
480,000
issued, 6,000 shares in treasury
Additional paid-in capital
In excess of par value
720,000
From treasury stock
45,000
765,000
Retained earnings
522,000
1,767,000
Less: Treasury stock (6,000 shares) at cost
207,000
Total Stockholders’ Equity
1,560,000
The following transactions affecting stockholders’ equity
occurred during the year:
Jan.
8
Issued 15,000 shares of...
The stockholders' equity section of the balance sheet appears as follows at January 1, 2014: Common...
The stockholders' equity section of the balance sheet appears as
follows at January 1, 2014:
Common Stock, $2 par, 2,000 shares issued and outstanding
$4,000
Paid-in Capital in Excess of Par--Common Stock
1,600
Total Capital Stock
5,600
Retained Earnings
5,400
Total Stockholders' Equity
$11,000
On March 1, 2014, the company repurchased 800 shares of its common
stock at $12 per share but on April 6, 2014, it reissued 600 shares
of the shares at $20 per share.
A) Prepare the...
Stockholders’ Equity: Transactions and Statement The stockholders’ equity section of Night Corporation’s balance sheet at January...
Stockholders’ Equity: Transactions and
Statement
The stockholders’ equity section of Night Corporation’s balance
sheet at January 1 follows:
Common stock, $5 par value, 300,000 shares authorized, 60,000
shares
$300,000
issued, 6,000 shares in treasury
Additional paid-in capital
In excess of par value
$480,000
From treasury stock
30,000
510,000
Retained earnings
348,000
1,158,000
Less: Treasury stock (6,000 shares) at cost
138,000
Total Stockholders’ Equity
$1,020,000
The following transactions affecting stockholders’ equity
occurred during the year:
Jan.
8
Issued 15,000 shares of...
A company had the following stockholders' equity section on its balance sheet on January 1, 2008:Common...
A company had the following stockholders' equity section on its
balance sheet on January 1, 2008:Common stock, $2 par, 10,000
shares issued and outstanding$20,000 Paid-in capital in excess of
par-common 40,000 Retained earnings 10,000 Total stockholders'
equity $70,000 .
All common shares were originally sold for $6 each. On February
16, the company reacquired 3,000 shares of common stock at $15 per
share. 500 of these treasury shares were reissued at $20 on June 1
and 1,500 of these shares...
The stockholders' equity section of Pats Corporation's balance sheet as of December 31, 2019 is as...
The stockholders' equity section of Pats Corporation's
balance sheet as of December 31, 2019 is as follows:
Stockholders'
Equity
Common stock, no par value;
authorized, 20,000,000 shares;
Issued and outstanding,
4,000,000
shares
$32,000,000
Retained
earnings
55,000,000
$87,000,000
The following events occurred
during 2020:
Jan. 15 45,000 shares of
authorized and unissued common stock sold for $8 per
share.
Jan. 26 Declared a cash dividend of 12 cents per share, payable
February 25 to stock-holders of record on February...
The stockholders' equity section of Benton Corporation's balance sheet as of December 31, 2018 is as...
The stockholders' equity section of Benton Corporation's balance
sheet as of December 31, 2018 is as follows:
Stockholders' Equity
Common stock, $5 par value; authorized, 2,000,000 shares;
issued, 400,000 shares $2,000,000
Paid-in capital in excess of par 850,000
Retained earnings 3,000,000
$5,850,000
The following events occurred from January to August during
2019:
1. Jan. 5 10,000 shares of authorized and unissued common stock
were sold for $8 per share.
2. Jan. 16 Purchase back 1,000 treasury shares at $10 per...
Treasury Stock The Stockholders' Equity section of Zavala Industries' balance sheet on January 1, 2017, appeared...
Treasury Stock
The Stockholders' Equity section of Zavala Industries' balance
sheet on January 1, 2017, appeared as follows:
Common stock, $10 par, 10,000 shares issued and
outstanding
$100,000
Additional paid-in capital
50,000
Retained earnings
80,000
Total stockholders’ equity
$230,000
Required:
1. Identify and analyze the effect of each
transaction.
The following transactions occurred during 2017:
a. Reacquired 1,800 shares of common stock at $20
per share on July 1.
Activity
Financing
Accounts
Cash Decrease, Treasury Stock Increase
Statement(s)
Balance Sheet...
Stock Dividends The Stockholders' Equity section of Merriwether Corp.'s balance sheet as of January 1, 2017,...
Stock Dividends
The Stockholders' Equity section of Merriwether Corp.'s balance
sheet as of January 1, 2017, appeared as follows:
Common stock, $10 par, 49,000 shares issued and
outstanding
$490,000
Additional paid-in capital
100,000
Retained earnings
400,000
Total stockholders' equity
$990,000
The following transactions occurred during 2017:
Declared a 10% stock dividend to common stockholders on January
15. At the time of the dividend, the common stock was selling for
$30 per share. The stock dividend was to be issued to...
Treasury Stock The Stockholders' Equity section of Zavala Industries' balance sheet on January 1, 2017, appeared...
Treasury Stock
The Stockholders' Equity section of Zavala Industries' balance
sheet on January 1, 2017, appeared as follows:
Common stock, $10 par, 10,000 shares issued and
outstanding
$100,000
Additional paid-in capital
50,000
Retained earnings
80,000
Total stockholders’ equity
$230,000
Required:
1. Identify and analyze the effect of each
transaction.
The following transactions occurred during 2017:
a. Reacquired 1,400 shares of common stock at $20
per share on July 1.
Activity
Accounts
Statement(s)
How does this entry affect the accounting equation?...
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