Cullumber Company has two classes of capital stock outstanding: 8%, $20 par preferred and $5 par common. At December 31, 2020, the following accounts were included in stockholders’ equity. Preferred Stock, 160,200 shares $ 3,204,000 Common Stock, 1,983,000 shares 9,915,000 Paid-in Capital in Excess of Par—Preferred Stock 200,000 Paid-in Capital in Excess of Par—Common Stock 26,495,000 Retained Earnings 4,431,000 The following transactions affected stockholders’ equity during 2021. Jan. 1 29,300 shares of preferred stock issued at $24 per share. Feb. 1 48,800 shares of common stock issued at $21 per share. June 1 2-for-1 stock split (par value reduced to $2.50). July 1 28,100 shares of common treasury stock purchased at $11 per share. Cullumber uses the cost method. Sept. 15 10,200 shares of treasury stock reissued at $12 per share. Dec. 31 The preferred dividend is declared, and a common dividend of 55¢ per share is declared. Dec. 31 Net income is $2,103,000. Prepare the stockholders’ equity section for Cullumber Company at December 31, 2021
Cullumber Company has two classes of capital stock outstanding: 8%, $20 par preferred and $5 par common. At December 31, 2020, the following accounts were included in stockholders’ equity. Preferred Stock, 160,200 shares $ 3,204,000 Common Stock, 1,983,000 shares 9,915,000 Paid-in Capital in Excess of Par—Preferred Stock 200,000 Paid-in Capital in Excess of Par—Common Stock 26,495,000 Retained Earnings 4,431,000 The following transactions affected stockholders’ equity during 2021. Jan. 1 29,300 shares of preferred stock issued at $24 per share. Feb. 1 48,800 shares of common stock issued at $21 per share. June 1 2-for-1 stock split (par value reduced to $2.50). July 1 28,100 shares of common treasury stock purchased at $11 per share. Cullumber uses the cost method. Sept. 15 10,200 shares of treasury stock reissued at $12 per share. Dec. 31 The preferred dividend is declared, and a common dividend of 55¢ per share is declared. Dec. 31 Net income is $2,103,000. Prepare the stockholders’ equity section for Cullumber Company at December 31, 2021
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Cullumber Company has two classes of capital stock outstanding: 8%, $20 par preferred and $5 par common. At December 31, 2020, the following accounts were included in
| $ 3,204,000 | ||
| Common Stock, 1,983,000 shares | 9,915,000 | |
| Paid-in Capital in Excess of Par—Preferred Stock | 200,000 | |
| Paid-in Capital in Excess of Par—Common Stock | 26,495,000 | |
| 4,431,000 |
The following transactions affected stockholders’ equity during 2021.
| Jan. 1 | 29,300 shares of preferred stock issued at $24 per share. | |
| Feb. 1 | 48,800 shares of common stock issued at $21 per share. | |
| June 1 | 2-for-1 stock split (par value reduced to $2.50). | |
| July 1 | 28,100 shares of common |
|
| Sept. 15 | 10,200 shares of treasury stock reissued at $12 per share. | |
| Dec. 31 | The preferred dividend is declared, and a common dividend of 55¢ per share is declared. | |
| Dec. 31 | Net income is $2,103,000. |
Prepare the stockholders’ equity section for Cullumber Company at December 31, 2021
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