3. Please refer to the equity section of the balance sheet shown as follows: Preferred stock $100 par, 10,000 shares authorized, 1,000 shares issued $100,000 $1 par, 500,000 shares authorized,? shares issued Common stock Paid-in capital in excess of par -common stock Retained earnings Total stockholders' equity The amount shown for earnings would be called a(n): A) net loss. B) earnings shortfall. C) retained earnings deficit. D) loss on sale of stock. 20,000 350,000 (74,000) $396,000 Retained 4. Based on the info above, determine the number of common stock issued. 5. Based on the info above determine the issue/market price for the common stock.
3. Please refer to the equity section of the balance sheet shown as follows: Preferred stock $100 par, 10,000 shares authorized, 1,000 shares issued $100,000 $1 par, 500,000 shares authorized,? shares issued Common stock Paid-in capital in excess of par -common stock Retained earnings Total stockholders' equity The amount shown for earnings would be called a(n): A) net loss. B) earnings shortfall. C) retained earnings deficit. D) loss on sale of stock. 20,000 350,000 (74,000) $396,000 Retained 4. Based on the info above, determine the number of common stock issued. 5. Based on the info above determine the issue/market price for the common stock.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:3. Please refer to the equity section of
the balance sheet shown as follows:
Preferred stock
Common stock
Paid-in capital in excess of
par -common stock
$100 par, 10,000 shares
authorized, 1,000 shares issued $100,000
$1
par, 500,000 shares
authorized,? shares issued
Retained earnings
Total stockholders' equity
The amount shown for
earnings would be called a(n):
A) net loss.
B) earnings shortfall.
C) retained earnings deficit.
D) loss on sale of stock.
20,000
350,000
(74,000)
$396,000
Retained
4. Based on the info above, determine
the number of common stock issued.
5. Based on the info above determine
the issue/market price for the common
stock.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Follow-up Questions
Read through expert solutions to related follow-up questions below.
Follow-up Question
In additin to the above question:
- Prepare the company’s
Stockholders equity section of thebalance sheet at December 31, 2021. (Hint!!!!!!!) The following information must be clearly stated/shown:- information on par or par values for all classes of shares which must be shown separately.
- the number of shares authorized and issued where necessary.
- the sub total for the total paid in capital.
- Retained earnings.
- total stockholders’ equity.
Solution
by Bartleby ExpertFollow-up Question
Transcribed Image Text:6. The owners are desirous of comparing serval financial transactions and possible outcomes to
assist in guiding their decision-making process. They assume that the company will be formed on
January 1, 2021. In addition, J&K Paint Shop Company's charter will authorize 1,200,000 shares of
common stock (to be divided into two classes (700,000 shares class A -voting rights and 500,000
shares class B -nonvoting rights) and 400,000, $X par value (see info below), 5% cumulative
preferred stock. They have asked each student from your accounting course to prepare the
company's journal entries and statement of owner's equity based on the following information.
A. Issued 60% _shares of class A common stock. Stock has par value of $48.00 per share and
was issued at $ 105.00 per share. (Please refer to table below and use only the info in line
with your first name initial in the blank/underlined space).
B. Issued 60% shares of no-par class B stock. Issue Price $98.00
C. Issued 20% shares of preferred stock at par value. Par Value is $168.00
D. Exchanged 40% shares of class A common stock for Office Furniture and Equipment with
an appraised value of $4,000,000.00 and Motor Truck with an appraised value of
$ 10.000.00.00
E. Earned Net income $ 1,450,000.00
F. Declared interim dividends for preferred shareholders as well as $.80 per share to common
stockholders.
Using the info above and as a guide:
A. Prepare the journal entries with narrations to record the following:
The issuances of stock.
Close out net income to retained earnings.
Dividend declared.
Close out dividend to retained earnings.
●
●
B. Prepare the company's Stockholders equity section of the balance sheet at December 31,
2021The following information must be clearly stated/shown:
information on par or par values for all classes of shares which must be shown
separately.
●
●
the number of shares authorized and issued where necessary.
the sub total for the total paid in capital.
Retained earnings.
total stockholders' equity.
Solution
by Bartleby ExpertRecommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education