Covington Corporation, a publicly traded company, was organized on January 1.2021. It is authorized to issue an unlimited number of $3 noncumulative preferred shares and an unlimited number of common shares. The following share transactions were completed during the company's first year of operations: Jan. 10 Issued 940,000 common shares for $2 per share. Mar. 1 Issued 22,000 preferred shares for $50 per share. May 1 Issued 235,000 common shares for $3 per share. June 1 Repurchased and retired 9.000 common shares at $2 per share. Determine the average cost of each repurchased share to the nearest cent before recording this transaction. July 24 Sept. 4 Nov. 1 20 Dec. 14 31 Issued 33,600 common shares for $130,000 cash and used equipment. The equipment would have cost $30,000 if Remmers had purchased it new and a recent appraisal determined that the equipment had a fair value of $16.000. The common shares were trading for $4 per share on this date. Issued 10,000 common shares for $5 per share. Issued 3,700 preferred shares for $50 per share. Repurchased and retired 16,000 common shares at $4 per share. Determine the average cost of each repurchased share to the nearest cent before recording this transaction. Declared a $68,000 cash dividend to the preferred shareholders, to shareholders of record on December 31, payable on January 10 Reported net income of $1.21 million for the year.
Covington Corporation, a publicly traded company, was organized on January 1.2021. It is authorized to issue an unlimited number of $3 noncumulative preferred shares and an unlimited number of common shares. The following share transactions were completed during the company's first year of operations: Jan. 10 Issued 940,000 common shares for $2 per share. Mar. 1 Issued 22,000 preferred shares for $50 per share. May 1 Issued 235,000 common shares for $3 per share. June 1 Repurchased and retired 9.000 common shares at $2 per share. Determine the average cost of each repurchased share to the nearest cent before recording this transaction. July 24 Sept. 4 Nov. 1 20 Dec. 14 31 Issued 33,600 common shares for $130,000 cash and used equipment. The equipment would have cost $30,000 if Remmers had purchased it new and a recent appraisal determined that the equipment had a fair value of $16.000. The common shares were trading for $4 per share on this date. Issued 10,000 common shares for $5 per share. Issued 3,700 preferred shares for $50 per share. Repurchased and retired 16,000 common shares at $4 per share. Determine the average cost of each repurchased share to the nearest cent before recording this transaction. Declared a $68,000 cash dividend to the preferred shareholders, to shareholders of record on December 31, payable on January 10 Reported net income of $1.21 million for the year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please explain proper steps by Step and Do Not Give Solution In Image Format And Fast Answering Please & Thanks In Advance ?
Transcribed Image Text:entry 20 nov.???!
Transcribed Image Text:Covington Corporation, a publicly traded company, was organized on January 1, 2021. It is authorized to issue an unlimited number of
$3 noncumulative preferred shares and an unlimited number of common shares. The following share transactions were completed
during the company's first year of operations:
Jan. 10
Mar. 1
May
June 1
1
July 24
Sept. 4
Nov. 1
20
Dec. 14
31
Issued 940,000 common shares for $2 per share.
Issued 22,000 preferred shares for $50 per share.
Issued 235,000 common shares for $3 per share.
Repurchased and retired 9.000 common shares at $2 per share. Determine the average cost of each repurchased
share to the nearest cent before recording this transaction.
Issued 33,600 common shares for $130,000 cash and used equipment. The equipment would have cost $30,000 if
Remmers had purchased it new and a recent appraisal determined that the equipment had a fair value of $16,000.
The common shares were trading for $4 per share on this date.
Issued 10,000 common shares for $5 per share.
Issued 3,700 preferred shares for $50 per share.
Repurchased and retired 16,000 common shares at $4 per share. Determine the average cost of each repurchased
share to the nearest cent before recording this transaction.
Declared a $68,000 cash dividend to the preferred shareholders, to shareholders of record on December 31, payable
on January 10.
Reported net income of $1.21 million for the year.
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