6. $ When the shares were issued on March 1, how much did additional paid in capital increase? 7. repurchased, how much did stockholders' equity decrease? 2$ On August 1st when the shares were 8. 2$ On August 1st when the shares were repurchased, how much did net income decrease?
6. $ When the shares were issued on March 1, how much did additional paid in capital increase? 7. repurchased, how much did stockholders' equity decrease? 2$ On August 1st when the shares were 8. 2$ On August 1st when the shares were repurchased, how much did net income decrease?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:LMar ssue 5,000 additional shares of preferred stock for
s102.50 per share
Issue 100,000 additional shares of common stock for
Is25.00 реr share
1-Apr
Declare a cash dividend on both common and
1-Jun preferred stock of $0.75 per share to all stockholders
of record on June 15.
30-Jun Pay the cash dividend declared on June 1.
1-Aug Repurchase (buy) 50,000 shares of common treasury
stock for $26.00 per share
o. Resell 40,000 shares of treasury stock purchased on
August 1 for $26.50 per share
31-Dec Net income for the year was $750,000
The beginning balances are shown below. Complete the
Stockholders' Equity
Statement of
using the above
information:
Additional
Total
Preferred
Stock
Paid-in
Capital
Stockholders'
Equity
Common
Retained
Treasury
Stock
Earnings
Stock
Beginning balance
20XC
$1,000,000
$80,000
$7,600,000
$1,200,000
so
$9,880,000
Issuance of stock
Net income for the year
Less: Dividends
Purchase Treasury stock
Resell Treasury stock
Ending balance 20XC
2$
March 1, how much did additional paid in capital
increase?
6.
When the shares were issued on
On August 1st when the shares were
equity
7.
repurchased,
decrease?
how much
did stockholders'
8.
2$
On August 1st when the shares were
repurchased, how much did net income decrease?
9.
$
On October 1st when the 40,000
shares were resold, how much did additional paid in
capital change (if decrease put "-“ in front of the
number)?
On June 1st when the dividend
was declared, how much did retained earning decrease?
10.
$
11.
$
Compute ending retained earnings
on December 31st
12.
$
Compute ending stockholders
equity on December 31st.
Transcribed Image Text:Use the following to answer questions 6 – 12
J&TR, Inc., has two classes of stock authorized: $100.00 par
preferred and $0.10 par value common. As of the beginning
of 20XC, 10,000 shares of preferred stock and 800,000
shares of common stock have been issued.
Record the following transactions to complete the Statement
of Stockholders’ Equity:
Effect on Stockholders' Equity
L.Mar Issue 5,000 additional shares of preferred stock for
S102.50 per share
L-Apr ssue 100,000 additional shares of common stock for
$25.00 per share
Declare a cash dividend on both common and
1-Jun preferred stock of $0.75 per share to all stockholders
of record on June 15.
30-Jun Pay the cash dividend declared on June 1.
LAve Repurchase (buy) 50,000 shares of common treasury
stock for $26.00 per share
Resell 40,000 shares of treasury stock purchased on
August 1 for $26.50 per share
31-Dec Net income for the year was $750,000
1-Oct
The beginning balances are shown below. Complete the
Equity
Statement of Stockholders'
using the
above
information:
Additional
Total
Stockholders'
Preferred
Stock
Paid-in
Сapital
Retained
Earnings
Treasury
Stock
Common
Stock
Equity
Beginning balance
20XC
$1,000,000
$80,000
$7,600,000
S1,200,000
so
$9,880,000
Issuance of stock
Net income for the year
Less: Dividends
Purchase Treasury stock
Resell Treasury stock
Ending balance 20XC
6.
2$
When the shares were issued on
March 1, how much did additional paid in capital
increase?
2$
On August 1st when the shares were
stockholders' equity
7.
repurchased, how much
decrease?
did
8.
$
On August 1st when the shares were
repurchased, how much did net income decrease?
On October 1st when the 40,000
$
shares were resold, how much did additional paid in
capital change (if decrease put "-“ in front of the
number)?
9.
10.
$
On June 1st when the dividend
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