Question

In: Accounting

The stockholders' equity section on the balance sheet of Mangum's, a popular department store, is shown...

The stockholders' equity section on the balance sheet of Mangum's, a popular department store, is shown below. During the year, the company reported net income of $241,195,000 and declared and paid dividends of $11,908,000.

Stockholders’ Equity : Current Year Last Year
Common stock, Class A—116,600,308 and 116,455,495 shares issued; ? and ? shares outstanding 1,166,000 1,165,000
Common stock, Class B (convertible)—4,150,929 shares issued and outstanding 42,000 42,000
Additional paid-in capital 777,055,000 790,987,000
Retained earnings 2,467,727,000 ?
Less treasury stock, at cost, Class A—47,216,748 and 45,410,148 shares (1,879,581,000 ) (936,560,000 )

1. What amount was reported in the Common Stock (Class A) account at the end of the current year?

2. How many shares of Class A Common Stock were outstanding at the end of last year and the end of the current year?

3.What amount was reported in the Retained Earnings account at the end of last year?

4.At the end of the current year, have the treasury stock transactions increased assets or decreased assets? By how much?

5. During the current year, by what amount did treasury stock transactions increase or decrease stockholders' equity?

6. At the end of the current year, what was the average price paid per share for shares held in treasury stock?

Solutions

Expert Solution

1. Common stock (Class A) at the end of current year: $1,166,000

2.

Current Year Last Year
Number of shares issued            116,600,308       116,455,495
Less: Treasury stock              47,216,748         45,410,148
Number of shares outstanding              69,383,560         71,045,347

3. Retained earnings at the end of last year: $2,238,440,000

Retained earnings, ending balance $        2,467,727,000
Less net income            241,195,000
       2,226,532,000
Add dividends              11,908,000
Retained earnings, beginning balance $        2,238,440,000

4. Decreased assets by $943,021,000

Ending treasury stock        1,879,581,000
Less: Beginning treasury stock $            936,560,000
Increase in treasury stock $            943,021,000

5. Decreased stockholders' equity by $943,021,000

6. Average price paid per share of treasury stock = $1,879,581,000/47,216,748 = $39.81 (rounded to two decimal places)

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Exercise 15-19 Shown below is the liabilities and stockholders’ equity section of the balance sheet for...
Exercise 15-19 Shown below is the liabilities and stockholders’ equity section of the balance sheet for Splish Company and Blossom Company. Each has assets totaling $4,327,000. Splish Co. BlossomCo. Current liabilities $285,000 Current liabilities $855,000 Long-term debt, 9% 1,220,000 Common stock ($20 par) 2,740,000 Common stock ($20 par) 2,090,000 Retained earnings (Cash dividends, $333,000) 732,000 Retained earnings (Cash dividends, $229,000) 732,000 $4,327,000 $4,327,000 For the year, each company has earned the same income before interest and taxes. Splish Co. Blossom...
Analysis of Stockholders' Equity The Stockholders' Equity section of the December 31, 2017, balance sheet of...
Analysis of Stockholders' Equity The Stockholders' Equity section of the December 31, 2017, balance sheet of Eldon Company appeared as follows: Preferred stock, $40 par value, 5,000 shares authorized, ? shares issued $200,000 Common stock, ? par, 10,000 shares authorized, 10,000 shares issued 100,000 Additional paid-in capital—Preferred 9,000 Additional paid-in capital—Common 800,000 Additional paid-in capital—Treasury stock 2,000 Total contributed capital $1,111,000 Retained earnings 39,000 Treasury stock, preferred, 100 shares (3,300) Total stockholders’ equity $ ? Required: Determine the following items...
Shown below is the stockholders' equity section of Flamingo Corporation's balance sheet at December 31, 2020:...
Shown below is the stockholders' equity section of Flamingo Corporation's balance sheet at December 31, 2020: Flamingo Corporation Statement of Stockholder's Equity December 31, 2020 Common stock, $3 par value, 200,000 shares authorized, ____ shares issued and _____ outstanding $360,000 Additional paid in capital – common stock $400,000 Additional paid in capital – stock options $42,000 Total Paid in Capital $760,000 Retained Earnings $1,600,000 Less: Treasury Stock (10,000 shares) ($295,000) Total Stockholder’s Equity $2,065,000 Consider the following events in preparing...
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, $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...
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...
Which of the following is true about stockholders' equity? a This section of the Balance Sheet...
Which of the following is true about stockholders' equity? a This section of the Balance Sheet will always equal total assets. b This section of the Balance Sheet can only be increased if the company sells more stock to its stockholders. c Corporations always must have at least two accounts in this section of the Balance Sheet: common stock and retained earnings. d Retained earnings in stockholders equity is the one account on the Balance Sheet that the ending balance...
list the errors the following stockholders equity section of the balance sheet prepared as of the...
list the errors the following stockholders equity section of the balance sheet prepared as of the end of the current year: paid in capital: preferred 2% stock,$80 par(125,000 shares authorized and issued $10,000,000 excess of issue price over par 500,000-10,500,000 retaining earnings $96,700,000 treasury stock(75,000 shares to cost)-1,755,000 dividends payable 430,000 total paid in capital $109,385,000 common stock $20 par (1,000,000 shares authorized, 825,000 shares issued - $17,655,000 organizing costs 300,000 total stockholders equity $127,340,000
How is the Stockholders' Equity section of a corporate balance sheet different from that in a...
How is the Stockholders' Equity section of a corporate balance sheet different from that in a single-owner business?
The stockholders’ equity section on the December 31, 2014, balance sheet of American Corporation follows: Stockholders’...
The stockholders’ equity section on the December 31, 2014, balance sheet of American Corporation follows: Stockholders’ Equity Contributed capital    Preferred stock (par $21; authorized 17,000 shares, ? issued,      of which 700 shares are held as treasury stock) $ 126,000    Common stock (no-par; authorized 24,000 shares, issued       and outstanding 9,000 shares) 801,000    Contributed capital (includes $3,000 from treasury      stock transactions) 15,000 Retained earnings 48,000 Cost of treasury stock, preferred (16,800 ) Required: 1. Calculate the number of shares of preferred stock...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT