Blossom Corporation, a publicly traded company, was incorporated on May 1, 2024. It is authorized to issue an unlimited number of $2 noncumulative preferred shares and an unlimited number of common shares. The following share transactions were completed during the company's first year of operations: May 5 Issued 749,000 common shares for $4 per share. July 1 Issued 34,000 preferred shares for $40 per share. Sept. 1 Issued 44,000 common shares for $264,000. Oct. 1 Issued 249,000 common shares for $5 per share. Nov. 16 Repurchased and retired 24,000 common shares at $4 per share. Determine the average cost of each repurchased share to the nearest cent before recording this transaction. Jan. 5 Issued 14,000 common shares for $7 per share. Mar. 1 Repurchased and retired 9,000 common shares at $6 per share. Determine the average cost of each repurchased share to the nearest cent before recording this transaction. 25 Issued 5,000 preferred shares for $60 per share. Apr. 15 30 30 Declared a $78,000 cash dividend to the preferred shareholders, to shareholders of record on April 30, payable on May 15. Reported net income of $6 million for the year.
Blossom Corporation, a publicly traded company, was incorporated on May 1, 2024. It is authorized to issue an unlimited number of $2 noncumulative preferred shares and an unlimited number of common shares. The following share transactions were completed during the company's first year of operations: May 5 Issued 749,000 common shares for $4 per share. July 1 Issued 34,000 preferred shares for $40 per share. Sept. 1 Issued 44,000 common shares for $264,000. Oct. 1 Issued 249,000 common shares for $5 per share. Nov. 16 Repurchased and retired 24,000 common shares at $4 per share. Determine the average cost of each repurchased share to the nearest cent before recording this transaction. Jan. 5 Issued 14,000 common shares for $7 per share. Mar. 1 Repurchased and retired 9,000 common shares at $6 per share. Determine the average cost of each repurchased share to the nearest cent before recording this transaction. 25 Issued 5,000 preferred shares for $60 per share. Apr. 15 30 30 Declared a $78,000 cash dividend to the preferred shareholders, to shareholders of record on April 30, payable on May 15. Reported net income of $6 million for the year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
vi.2
Transcribed Image Text:Blossom Corporation, a publicly traded company, was incorporated on May 1, 2024. It is authorized to issue an unlimited number of $2
noncumulative preferred shares and an unlimited number of common shares. The following share transactions were completed during
the company's first year of operations:
May 5
Issued 749,000 common shares for $4 per share.
July
1
Issued 34,000 preferred shares for $40 per share.
Sept.
1
Issued 44,000 common shares for $264,000.
Oct.
1
Issued 249,000 common shares for $5 per share.
Nov. 16
Repurchased and retired 24,000 common shares at $4 per share. Determine the average cost of each repurchased
share to the nearest cent before recording this transaction.
Jan.
5
Issued 14,000 common shares for $7 per share.
Mar. 1
Repurchased and retired 9,000 common shares at $6 per share. Determine the average cost of each repurchased
share to the nearest cent before recording this transaction.
25
Issued 5,000 preferred shares for $60 per share.
Apr.
15
30
30
Declared a $78,000 cash dividend to the preferred shareholders, to shareholders of record on April 30, payable on
May 15.
Reported net income of $6 million for the year.
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