Crane 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 34,400 preferred shares for $40 per share. Sept. 1 Issued 45,800 common shares for $274,800. Issued 250,200 common shares for $5 per share. Oct. 1 Nov. 16 Repurchased and retired 26,000 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 15,200 common shares for $7 per share. Mar. 1 Apr. 25 15 30 Repurchased and retired 10,200 common shares at $6 per share. Determine the average cost of each repurchased share to the nearest cent before recording this transaction. Issued 5,800 preferred shares for $60 per share. Declared a $80,400 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. May 5 Cash July 1 Sept. 1 Oct. 1 Common Shares Cash Preferred Shares Cash Common Shares Cash Common Shares Nov. 16 Common Shares Contributed Surplus Cash Jan. 5 Cash Mar. 1 > Common Shares Common Shares Contributed Surplus Retained Earnings Cash Mar. 25 Cash Apr. 15 Apr. 30 Preferred Shares 2,996,000 1,376,000 274,800 1,251,000 145,600 106,400 348,000 Dividends Declared Dividends Payable 80,400 2,5
Crane 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 34,400 preferred shares for $40 per share. Sept. 1 Issued 45,800 common shares for $274,800. Issued 250,200 common shares for $5 per share. Oct. 1 Nov. 16 Repurchased and retired 26,000 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 15,200 common shares for $7 per share. Mar. 1 Apr. 25 15 30 Repurchased and retired 10,200 common shares at $6 per share. Determine the average cost of each repurchased share to the nearest cent before recording this transaction. Issued 5,800 preferred shares for $60 per share. Declared a $80,400 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. May 5 Cash July 1 Sept. 1 Oct. 1 Common Shares Cash Preferred Shares Cash Common Shares Cash Common Shares Nov. 16 Common Shares Contributed Surplus Cash Jan. 5 Cash Mar. 1 > Common Shares Common Shares Contributed Surplus Retained Earnings Cash Mar. 25 Cash Apr. 15 Apr. 30 Preferred Shares 2,996,000 1,376,000 274,800 1,251,000 145,600 106,400 348,000 Dividends Declared Dividends Payable 80,400 2,5
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Crane 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 34,400 preferred shares for $40 per share.
Sept.
1
Issued 45,800 common shares for $274,800.
Issued 250,200 common shares for $5 per share.
Oct. 1
Nov. 16
Repurchased and retired 26,000 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 15,200 common shares for $7 per share.
Mar.
1
Apr.
25
15
30
Repurchased and retired 10,200 common shares at $6 per share. Determine the average cost of each repurchased
share to the nearest cent before recording this transaction.
Issued 5,800 preferred shares for $60 per share.
Declared a $80,400 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.
Transcribed Image Text:May 5
Cash
July 1
Sept. 1
Oct. 1
Common Shares
Cash
Preferred Shares
Cash
Common Shares
Cash
Common Shares
Nov. 16
Common Shares
Contributed Surplus
Cash
Jan. 5
Cash
Mar. 1
>
Common Shares
Common Shares
Contributed Surplus
Retained Earnings
Cash
Mar. 25
Cash
Apr. 15
Apr. 30
Preferred Shares
2,996,000
1,376,000
274,800
1,251,000
145,600
106,400
348,000
Dividends Declared
Dividends Payable
80,400
2,5
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