ExiSevedA company created a charter on January 1, 2021 with 1,500,000 authorized shares of common stock. On the same date, the company sold 100,000 shares of commonstock with $1 par value for $10 per share. On July 31, 2021 the company declared a cash dividend of $2 per share to stockholders of record on September 30. Thecompany paid the cash dividend on November 30, 2021. December 1, the company repurchased 20.000 of its own shares of stock. On December 22, the companyresold 20,000 of these shares from Treasury to shareholders.What is the dollar value of Additional Paid in Capital in the journal entry for January 1, 2021?Numeric sponse

The additional paid in capital represents the excess amount received more than the par value of…

Answered: A company created a charter on January…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On January 1, 2029, Ortiz LLC issued 5,000 shares of $5 per value common stock for cash at $10 per share. On December 31, 2019, Ortiz LLC has 1,000 shares of common stock outstanding. It declares a $3 per share cash dividend on November 15 to stockholders to record on December 31. The dividends are paid on December 31.
Lee Company has the following capital structure. Common stock, $1 par, 100,000 shares issued and outstanding On October 1, 2020, the company declared a 5% common stock dividend when the market price of the common stock was $15 per share. The stock dividend will be distributed on October 15, 2020, to stockholders on record on October 10, 2020. Upon declaration of the stock dividend, Lee Company would record Select one: a. A debit to Retained Earnings for $5,000. b. A credit to Dividends Payable for $70,000. c. A credit to Paid-in Capital in Excess of Par—Common Stock for $70,000. d. A credit to Retained Earnings for $75,000.
During the first year Zidux corp issued 80,000 shares of $4 par value common stock at a price of $50 cash per share. Zidux Corp was organized on January 2, 2018. On December 31, 2018: Net Income = $350,000 Cash Dividends paid= $70,000 Find the amount Zidux will report on its year end Balance Sheet for Paid in Capital Common Stock in Excess to par.
Cole Company was formed on January 1, 2022, when 300,000 shares of $2 par value common stock were issued for $8 per share. Net income for 2022 was $150,000. Cash dividends of $0.25 per share were declared in December 2022 and paid in January 2023. The following occurred in 2023 :• April 1st, 10,000 treasury shares were purchased for $6 per share.• April 15th, 500 treasury shares were retired. • June 1st, 3,000 treasury shares were reissued for $7.50 per share .• November 1st, 4,000 treasury shares were reissued for $4 per share. • Net Income for 2023 was $200,000. • Cash dividends of $0.50 per share were declared in December 2023, payable in January 2024. Assuming Cole Company uses the cost method to account for treasury stock, prepare the stockholders’ equity section of the balance sheet at December 31, 2023. Also note how many shares of common stock were issued, outstanding, and treasury.
The shareholders’ equity section of the balance sheet of TNL Systems Inc. included the following accounts at December 31, 2020: Shareholders' Equity ($ in millions) Common stock, 200 million shares at $1 par $ 200 Paid-in capital—excess of par 1,600 Paid-in capital—share repurchase 2 Retained earnings 1,000 Required: 1. During 2021, TNL Systems reacquired shares of its common stock and later sold shares in two separate transactions. Prepare the entries for both the purchase and subsequent resale of the shares assuming the shares are (a) retired and (b) viewed as treasury stock. On February 5, 2021, TNL Systems purchased 8 million shares at $12 per share. On July 9, 2021, the corporation sold 3 million shares at $14 per share. On November 14, 2023, the corporation sold 3 million shares at $9 per share. 2. Prepare the shareholders’ equity section of TNL Systems’ balance sheet at December 31, 2023, comparing the two approaches. Assume all net income earned in 2021–2023 was distributed to…
On April 1, 2019, Kelly Corporation began operations and authorized 100,000 shares of $5 par value common stock. The company engaged in the following transactions:April 1 Issued 20,000 shares of common stock for $200,000.April 15 Issued 10,000 shares of common stock for $125,000.May 12 Purchased 2,500 shares of common stock for $75,000.June 30 The board of directors declared a $0.20 per share cash dividend to be paid on July 15 to shareholders of record on July 51. Prepare journal entries for the above transactions.2. Prepared the stockholders’ equity section of Kelly Corporation’s balance sheet as of June 30, 2019. Net income for the period April 1 through June 30 was $150,000.3. What effect, if any, will the cash dividend declaration on June 30 have on Kelly Corporation’s net income, retained earnings, and cash flows?
Roberto Corporation was organized on January 1, 2021. The firm was authorized to issue 82,000 shares of $5 par common stock. During 2021, Roberto had the following transactions relating to shareholders' equity: Issued 10,800 shares of common stock at $5.50 per share. Issued 20,600 shares of common stock at $9.10 per share. Reported a net income of $94,000. Paid dividends of $46,000. Purchased 3,700 shares of treasury stock at $11.10 (part of the 20,600 shares issued at $9.10). What is total shareholders' equity at the end of 2021? $258,720. $253,790. $256,590. $299,790.
Crane Ltd. began operations on January 2, 2024. During the year, the following transactions affected shareholders' equity: 1. Crane's articles of incorporation authorize the issuance of 2.5 million common shares and the issuance of 253,000 preferred shares, the latter of which pay an annual dividend of $3.0 per share. 2. A total of 303,000 common shares were issued for $6 a share, 3. A total of 35,000 preferred shares were issued for $10 per share. 4. The full annual dividend on the preferred shares was declared. 5. The dividend on the preferred shares was paid. 6. A dividend of $0.12 per share was declared on the common shares but was not yet paid. 7. The company had net income of $170,000 for the year. (Assume sales of $500,000 and total operating expenses of $330,000.) 8. The dividends on the common shares were paid. 9. The closing entry for the Dividends Declared account was prepared.
Carla Vista Corporation was organized on January 1, 2026 with the authorization of 1300000 shares of common stock with a par value of $6 per share. In 2026, the corporation had the following capital transactions: January 5 issued 650000 shares @ $11 per share July 28 purchased 76000 shares @ $11 per share December 31 sold the 76000 shares held in treasury @ $18 per share Carla Vista used the cost method to record the purchase and the reissuance of the treasury shares. What is the total amount of additional paid-in capital as of December 31, 2026? O $3782000. O $2558000. O $3250000. O $-0-.
Help me
During 2020, Road Pavement Corp. engaged in the following selected transactions: Jan 01: Issued 25,000 shares of $3 par value common stock at $7 per share. Jun 15: Re-acquired 1,000 shares of common stock sold in Jan for $5 per share. Aug 10: Sold 400 shares of the re-acquired common stock purchased in June for $8 per share. Sept 30: The Board of Directors declared and recorded a cash dividend of $0.30 per share outstanding to its share holders. Nov 30: Paid the cash dividend declared in September. Dec 15: Issued another 5,000 shares of common stock at $10 per share. Required: (a) Record the Journal Entries for the above transactions: (b) Prepare the Stockholders Equity Section of the Balance Sheet if the Retained Earnings at the end of the year has a balance of $95,000.

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