Lucas Company was issued a charter by the state of Indiana on January 15 of this year. The charter authorized the following:Common stock, $8 par value, 111,000 shares authorizedPreferred stock, 14 percent, par value $10 per share, 4,500 shares authorizedDuring the year, the following transactions took place in the order presented:a. Sold and issued 21,500 shares of common stock at $20 cash per share.b. Sold and issued 2,400 shares of preferred stock at $24 cash per share.c. At the end of the year, the company reported net income of $41,500. No dividends were declared.Required:1. Prepare the stockholders' equity section of the balance sheet at the end of the year.Stockholders' equity:Contributed capital:Total contributed capitalTotal stockholders' equityLUCAS COMPANYBalance Sheet (Partial)At December 31, This year$

A partial balance sheet provides the reader with a concise summary of important financial details…

Answered: Common stock, $8 par value, 111,000…

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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Dividends Per Share Windborn Company has 20,000 shares of cumulative preferred 2% stock, $150 par and 50,000 shares of $25 par common stock. The following amounts were distributed as dividends: 20Y1 $120,000 20Y2 24,000 20Y3 180,000 Determine the dividends per share for preferred and common stock for each year. Round all answers to two decimal places. If an answer is zero, enter '0'. Preferred Stock(dividends per share) Common Stock(dividends per share) 20Y1 20Y2 20Y3
Preferred stock: 10 percent, $14 par value, 40,000 shares authorized Common stock: $9 par value, 85,100 shares authorized During the current year, the following transactions occurred in the order given: a. Sold 23,800 shares of common stock for $13 per share. b. Sold 7,300 shares of the preferred stock for $24 per share. c. Sold 1,800 shares of the preferred stock for $24 per share and 1,700 shares of common stock for $14 per share. Required: Provide the journal entries required to record each of the transactions in (a) through (c). Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet
QUESTION 2 Klug Corporation reported the following information at December 31: Preferred stock, $10 par, 10,000 shares authorized, issued, and outstanding; cumulative; nonparticipating; callable at par value $ 100,000 Common stock, $1 par, 500,000 shares authorized 100,000 Additional paid-in capital - Common 25,000 Retained earnings 75,000 Total stockholders' equity $300,000 The total contributed capital is: A. $225,000 B. $ 75,000 C. $175,000 D. $ 25,000
Instructions The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current year: Preferred 2% Stock, $100 par (100,000 shares authorized, 80,000 shares issued) Paid-In Capital in Excess of Par-Preferred Stock Common Stock, $5 par (5,000,000 shares authorized, 4,000,000 shares issued) Paid-In Capital in Excess of Par-Common Stock Retained Earnings $8,000,000 440,000 20,000,000 2,280,000 115,400,000 During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows: a. Issued 220,000 shares of common stock at $14, receiving cash. b. Issued 12,000 shares of preferred 2% stock at $110. c. Purchased 160,000 shares of treasury common for $10 per share. d. Sold 105,000 shares of treasury common for $16 per share. e. Sold 40,000 shares of treasury common for $8 per share. f. Declared cash dividends of $2.00 per share on preferred stock and $0.08 per share on common stock. g.…
Instructions Stockholders’ equity accounts and other related accounts of Gonzales Company as of January 1, 20--, the beginning of its fiscal year, are shown below. Preferred stock subscriptions receivable $ 50,000 Preferred stock, $10 par, 9% (200,000 shares authorized; 20,000 shares issued) 200,000 Preferred stock subscribed (10,000 shares) 100,000 Paid-in capital in excess of par—preferred stock 40,000 Common stock, $10 par (100,000 shares authorized; 60,000 shares issued) 600,000 Paid-in capital in excess of par—common stock 250,000 Retained earnings 750,000 During 20--, Gonzales Company completed the following transactions affecting stockholders’ equity: Transactions: (a) Received $20,000 for the balance due on subscriptions for preferred stock with a par value of $40,000 and issued the stock. (b) Purchased 10,000 shares of common treasury stock for $18 per share. (c) Received subscriptions for 10,000 shares of common stock at $19…
Share Capital – Preference:5%, $100 par value, noncumulative,100,000 shares authorized,60,000 shares issued and outstanding Share Capital – Ordinary:$1 par value, 10,000,000 shares authorized,6,000,000 shares issuedand 5,970,000 shares outstanding A cash dividend was declared for preference shares and a cash dividend of$0.03 per share was declared for ordinary shares. The dividends will be paid in April. How to calculate the cash dividends should be issued?
The stockholders’ equity section of Creighton Company’s balance sheet is shown as follows: CREIGHTON COMPANY As of December 31, Year 3 Stockholders’ equity Preferred stock, $10 stated value, 7% cumulative,300 shares authorized, 50 issued and outstanding $ 500 Common stock, $10 par value, 250 shares authorized,100 issued and outstanding 1,000 Common stock, class B, $20 par value, 400 sharesauthorized, 150 issued and outstanding 3,000 Common stock, no par, 150 shares authorized,100 issued and outstanding 2,200 Paid-in capital in excess of stated value—preferred 600 Paid-in capital in excess of par value—common 1,200 Paid-in capital in excess of par value—class B common 750 Retained earnings 7,000 Total stockholders’ equity $ 16,250 Requireda. Assuming the preferred stock was originally issued for cash, determine the amount of cash collected when the stock was issued.b. Based on the class B common stock alone,…
Requirement 1. ldentify the different classes of stock that Thoughtful Comfort Specialists has outstanding. Thoughtful has preferred stock and common stock outstanding. Requirement 2. What is the par value per share of Thoughtful Comfort Specialists' preferred stock? The par value of preferred stock is per share. Requirement 3. Make two summary journal entries to record issuance of all the Thoughtful Comfort Specialists' stock for cash. Explanations are not required. (Record debits first, then credits. Exclude explanations from any journal entries.) Begin by recording the issuance of the preferred stock. Date Accounts Debit Credit Cash Preferred Stock Next, record the issuance of the common stock. Date Accounts Debit Credit Cash Common Stock-S1 Par Value Paid-In Capital in Excess of Par-Common Requirement 4. No preferred dividends are in arrears. Journalize the declaration of a $ 600,000 dividend at June 30, 2018, and the payment of the dividend on July 20, 2018. Use separate Dividends…
Stockholders’ Equity (January 1) Common stock—$6 par value, 100,000 sharesauthorized, 30,000 shares issued and outstanding $ 180,000 Paid-in capital in excess of par value, common stock 140,000 Retained earnings 360,000 Total stockholders’ equity $ 680,000 Stockholders’ Equity (December 31) Common stock—$6 par value, 100,000 sharesauthorized, 35,200 shares issued, 4,000 shares in treasury $ 211,200 Paid-in capital in excess of par value, common stock 171,200 Retained earnings ($40,000 restricted by treasury stock) 420,000 802,400 Less cost of treasury stock (40,000 ) Total stockholders’ equity $ 762,400 The following transactions and events affected its equity during the year. Jan. 5 Declared a $0.40 per share cash dividend, date of record January 10. Mar. 20 Purchased treasury stock for cash. Apr. 5 Declared a $0.40 per share cash dividend, date of record April 10.…
Stockholders' Equity: Transactions and StatementThe stockholders' equity section of Night Corporation's balance sheet at January 1 follows: Common stock, $6 par value, 300,000 shares authorized, 60,000 shares 360,000 issued, 6,000 shares in treasury Additional paid-in capital In excess of par value 600,000 From treasury stock 37,500 637,500 Retained earnings 435,000 1,432,500 Less: Treasury stock (6,000 shares) at cost 172,500 Total Stockholdersâ€™ Equity 1,260,000 The following transactions affecting stockholdersâ€™ equity occurred during the year: Jan. 8 Issued 15,000 shares of previously unissued common stock for $26 cash per share. Mar. 12 Sold all of the treasury shares for $35 cash per share. June 30 Declared a five percent stock dividend on all outstanding shares of common stock. The market value of the stock was $31 per share. July 10 Issued the stock dividend declared on June 30. Oct. 7 Acquired 2,500 shares of common…
A company has 5,000 shares of $100 par preferred stock and 50,000 shares of $10 par common stock outstanding. Its total stockholders’ equity is $2,000,000. Its book value per common share is a. $100.00. c. $40.00. e. $36.36. b. $10.00. d. $30.00.

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Common stock, $8 par value, 111,000 shares authorized Preferred stock, 14 percent, par value $10 per share, 4,500 shares authorized