Accounting for Share Transactions At the beginning of the year, The Mann Corporation, a private entity, decided to go public. A charter of incorporation was constructed which authorized the sale of 10 million shares of $1 par value common stock, 100,000 shares of $100 par value, 8% preferred stock, and 200,000 shares of $5 no-par-value convertible preferred s The following shares were sold as part of the firm's initial public offering: • 1,000,000 shares of common stock at $10 per share. • 100,000 shares of $100 par value, 896 preferred stock at $105 per share. • 100,000 shares of $5 convertible, no-par preferred stock at $55 per share. At year-end, the full dividend was declared and paid on both preferred stock offerings. Required Using a spreadsheet, record the financial effects of the shareholders' equity transactions for The Mann Corporation for the year. Enter amounts in thousands. The Mann Corporation Common 8% Preferred Transaction (In thousands) Shares IPO IPO Assets Cash Shareholders' Equity Common Stock APIC - Common $100 Preferred Stock APIC-Preferred $5 Conv. Preferred SAnswer $Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer No-par Balance No-par 8% Preferred Preferred Sheet Preferred IPO Dividend Dividend Totals SAnswer SAnswer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer SAnswer SAnswer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer
Accounting for Share Transactions At the beginning of the year, The Mann Corporation, a private entity, decided to go public. A charter of incorporation was constructed which authorized the sale of 10 million shares of $1 par value common stock, 100,000 shares of $100 par value, 8% preferred stock, and 200,000 shares of $5 no-par-value convertible preferred s The following shares were sold as part of the firm's initial public offering: • 1,000,000 shares of common stock at $10 per share. • 100,000 shares of $100 par value, 896 preferred stock at $105 per share. • 100,000 shares of $5 convertible, no-par preferred stock at $55 per share. At year-end, the full dividend was declared and paid on both preferred stock offerings. Required Using a spreadsheet, record the financial effects of the shareholders' equity transactions for The Mann Corporation for the year. Enter amounts in thousands. The Mann Corporation Common 8% Preferred Transaction (In thousands) Shares IPO IPO Assets Cash Shareholders' Equity Common Stock APIC - Common $100 Preferred Stock APIC-Preferred $5 Conv. Preferred SAnswer $Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer No-par Balance No-par 8% Preferred Preferred Sheet Preferred IPO Dividend Dividend Totals SAnswer SAnswer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer SAnswer SAnswer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Accounting for Share Transactions
At the beginning of the year, The Mann Corporation, a private entity, decided to go public.
A charter of incorporation was constructed which authorized the sale of 10 million shares of $1 par value common stock, 100,000 shares of $100 par value, 8% preferred stock, and 200,000 shares of $5 no-par-value convertible preferred stock.
The following shares were sold as part of the firm's initial public offering:
• 1,000,000 shares of common stock at $10 per share.
• 100,000 shares of $100 par value, 8% preferred stock at $105 per share.
• 100,000 shares of $5 convertible, no-par preferred stock at $55 per share.
At year-end, the full dividend was declared and paid on both preferred stock offerings.
Required
Using a spreadsheet, record the financial effects of the shareholders' equity transactions for The Mann Corporation for the year. Enter amounts in thousands.
The Mann Corporation
No-par
No-par 8% Preferred Preferred
Transaction (In thousands) Shares IPO IPO Preferred IPO Dividend Dividend
Common 8% Preferred
Assets
Cash
Shareholders' Equity
Common Stock
APIC - Common
$100 Preferred Stock
APIC-Preferred
$5 Conv. Preferred
Retained Earnings
Total Shareholders' Equity
SAnswer $Answer
Answer Answer
Answer Answer
Answer Answer
Answer Answer
Answer Answer
Answer Answer
$Answer SAnswer
Answer
Answer
Answer
Answer
Answer
Answer
Answer
Answer
Answer
Answer
Answer
Answer
Balance
Sheet
Totals
SAnswer SAnswer
Answer Answer
Answer Answer
Answer Answer
Answer Answer
Answer Answer
Answer Answer
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