Below is the Stockholder's Equity section of the Reston Corporation's Balance Sheet as of December 31, 2021: Common Stocks ($5 par value, 2,000,000 authorized, 402,000 issued, and 400,000 outstanding) $2,010,000 Paid-in Capital paid in excess of par value of common stock $850,000 Paid-in capital in excess of treasury stocks $300 Retained Earnings $3,000,000 Treasury Stock $12,000 Total Equity $5,848,300 1. Prepare the necessary journal entries for the following equity transactions that occurred during 2022. 2. Indicate how many outstanding shares the company has immediately after each transaction. January 5 - The company sold 15,000 previously unissued authorized shares of common stock at $8 each. March 1 - A 35% stock dividend applicable to all shares outstanding on this date was declared and distributed. The market value of the shares on this date was $15 each. April 1 - A 2:1 stock-split-up was declared. The market value of the shares on this date was $18 each. July 1 - A 10% stock dividend was declared and distributed. The market value of the shares on this date was $10 each. November 1 – 1,000 shares of portfolio were sold at $5.50 each.
Below is the Stockholder's Equity section of the Reston Corporation's Balance Sheet as of December 31, 2021: Common Stocks ($5 par value, 2,000,000 authorized, 402,000 issued, and 400,000 outstanding) $2,010,000 Paid-in Capital paid in excess of par value of common stock $850,000 Paid-in capital in excess of treasury stocks $300 Retained Earnings $3,000,000 Treasury Stock $12,000 Total Equity $5,848,300 1. Prepare the necessary journal entries for the following equity transactions that occurred during 2022. 2. Indicate how many outstanding shares the company has immediately after each transaction. January 5 - The company sold 15,000 previously unissued authorized shares of common stock at $8 each. March 1 - A 35% stock dividend applicable to all shares outstanding on this date was declared and distributed. The market value of the shares on this date was $15 each. April 1 - A 2:1 stock-split-up was declared. The market value of the shares on this date was $18 each. July 1 - A 10% stock dividend was declared and distributed. The market value of the shares on this date was $10 each. November 1 – 1,000 shares of portfolio were sold at $5.50 each.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Below is the
Common Stocks ($5 par value, 2,000,000 authorized, 402,000 issued, and 400,000 outstanding) $2,010,000
Paid-in Capital paid in excess of par value of common stock $850,000
Paid-in capital in excess of treasury stocks $300
Retained Earnings $3,000,000
Total Equity $5,848,300
1. Prepare the necessary
2. Indicate how many outstanding shares the company has immediately after each transaction.
- January 5 - The company sold 15,000 previously unissued authorized shares of common stock at $8 each.
- March 1 - A 35% stock dividend applicable to all shares outstanding on this date was declared and distributed. The market value of the shares on this date was $15 each.
- April 1 - A 2:1 stock-split-up was declared. The market value of the shares on this date was $18 each.
- July 1 - A 10% stock dividend was declared and distributed. The market value of the shares on this date was $10 each.
- November 1 – 1,000 shares of portfolio were sold at $5.50 each.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended 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