Defore-and-after effects of each option on (a) retained earnings, (b) total stUUII T) a 15% stock dividend or (2) a 2-for-1 stock split. He e Trom $1,800,000 to $12,00 Prepare stockholders' equity section. equity, and (c) par value per share. (LO 4), AP It was authorized 500,000 shares. The paid-in capital in excess of par stock is $263,000. The corporation has reacquired 7,000 shares at a cost of $46,000 and is value on the common currently holding those shares. It also had accumulated other comprehensive income of The corporation also has 2,000 shares issued and outstanding of 9%, $100 par value $67,000. preferred stock. It was authorized 10,000 shares. The paid-in capital in excess of value preferred stock is $23,000. Retained earnings is $372,000. Prepare the stockholders' DO IT! 11-4b On January 1, 2017, Vahsholtz Corporation purchased 5,000 shares of trea- par on the equity section of the balance sheet. Compute return on stock- holders' equity and discuss changes. sury stock. Other information regarding Vahsholtz Corporation is provided as follows. (LO 4), AP 2016 2017 $100,000 $ 30,000 $ 20,000 50,000 Net income $110,000 $ 30,000 $ 25,000 45,000 $750,000 $830,000 Dividends on preferred stock Dividends on common stock Weighted-average number of common shares outstanding Common stockholders' equity beginning of year Common stockholders' equity end of year $600,000 $750,000 Compute (a) return on common stockholders' equity for each year, and (b) discuss the changes in each. EXERCISES lize issuance of common E11-1 During its first year of operations, Mona Corporation had these transactions per- taining to its common stock. Jan. 10 Issued 30,000 shares for cash at $5 per July 1 Issued 60,000 shares for cash at $7 per share. share. Instructions (a) Journalize the transactions, assuming that the common stock has a par value of $5 per share. (b) Journalize the transactions, assuming that the common stock is no-par with a stated value of $1 per share.
Defore-and-after effects of each option on (a) retained earnings, (b) total stUUII T) a 15% stock dividend or (2) a 2-for-1 stock split. He e Trom $1,800,000 to $12,00 Prepare stockholders' equity section. equity, and (c) par value per share. (LO 4), AP It was authorized 500,000 shares. The paid-in capital in excess of par stock is $263,000. The corporation has reacquired 7,000 shares at a cost of $46,000 and is value on the common currently holding those shares. It also had accumulated other comprehensive income of The corporation also has 2,000 shares issued and outstanding of 9%, $100 par value $67,000. preferred stock. It was authorized 10,000 shares. The paid-in capital in excess of value preferred stock is $23,000. Retained earnings is $372,000. Prepare the stockholders' DO IT! 11-4b On January 1, 2017, Vahsholtz Corporation purchased 5,000 shares of trea- par on the equity section of the balance sheet. Compute return on stock- holders' equity and discuss changes. sury stock. Other information regarding Vahsholtz Corporation is provided as follows. (LO 4), AP 2016 2017 $100,000 $ 30,000 $ 20,000 50,000 Net income $110,000 $ 30,000 $ 25,000 45,000 $750,000 $830,000 Dividends on preferred stock Dividends on common stock Weighted-average number of common shares outstanding Common stockholders' equity beginning of year Common stockholders' equity end of year $600,000 $750,000 Compute (a) return on common stockholders' equity for each year, and (b) discuss the changes in each. EXERCISES lize issuance of common E11-1 During its first year of operations, Mona Corporation had these transactions per- taining to its common stock. Jan. 10 Issued 30,000 shares for cash at $5 per July 1 Issued 60,000 shares for cash at $7 per share. share. Instructions (a) Journalize the transactions, assuming that the common stock has a par value of $5 per share. (b) Journalize the transactions, assuming that the common stock is no-par with a stated value of $1 per share.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Defore-and-after effects of each option on (a) retained earnings, (b) total stUUII
T) a 15% stock dividend or (2) a 2-for-1 stock split. He e
Trom $1,800,000 to $12,00
Prepare stockholders' equity
section.
equity, and (c) par value per share.
(LO 4), AP
It was authorized 500,000 shares. The paid-in capital in excess of par
stock is $263,000. The corporation has reacquired 7,000 shares at a cost of $46,000 and is
value on the common
currently holding those shares. It also had accumulated other comprehensive income of
The corporation also has 2,000 shares issued and outstanding of 9%, $100 par value
$67,000.
preferred stock. It was authorized 10,000 shares. The paid-in capital in excess of
value
preferred stock is $23,000. Retained earnings is $372,000. Prepare the stockholders'
DO IT! 11-4b On January 1, 2017, Vahsholtz Corporation purchased 5,000 shares of trea-
par
on the
equity section of the balance sheet.
Compute return on stock-
holders' equity and discuss
changes.
sury stock. Other information regarding Vahsholtz Corporation is provided as follows.
(LO 4), AP
2016
2017
$100,000
$ 30,000
$ 20,000
50,000
Net income
$110,000
$ 30,000
$ 25,000
45,000
$750,000
$830,000
Dividends on preferred stock
Dividends on common stock
Weighted-average number of common shares outstanding
Common stockholders' equity beginning of year
Common stockholders' equity end of year
$600,000
$750,000
Compute (a) return on common stockholders' equity for each year, and (b) discuss the
changes in each.
EXERCISES
lize issuance of common
E11-1 During its first year of operations, Mona Corporation had these transactions per-
taining to its common stock.
Jan. 10 Issued 30,000 shares for cash at $5 per
July 1 Issued 60,000 shares for cash at $7 per share.
share.
Instructions
(a) Journalize the transactions, assuming that the common stock has a par value of
$5 per share.
(b) Journalize the transactions, assuming that the common stock is no-par with a stated
value of $1 per share.
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