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DeZurik Corporation had the following stockholders' equity section in its June 30, 2022, balance sheet (in thousands, except share and per share amounts): June 30 (in thousands) 2022 Paid-in capital: $5.0 Preferred stock, $ ? par value, cumulative, 50,000 shares authorized, 24,000 shares issued and outstanding$ 1,500Common stock, $2 par value, 4,000,000 shares authorized, 870,000 shares issued, 736,000 shares outstanding Additional paid-in capital on common stock5,050 Retained earnings Less: Treasury common stock, at cost, ? shares Total stockholders' equity$ 15,090 Required: Calculate the par value per share of preferred stock and determine the preferred stock dividend percentage. Calculate the amount that should be shown on the balance sheet for common stock at June 30, 2022. What was the average issue price of common stock shown on the June 30, 2022, balance sheet? How many shares of treasury stock does DeZurik Corporation own at June 30, 2022? Assume that the treasury shares were purchased for $16 per share. Calculate the amount that should be shown on the balance sheet for treasury stock at June 30, 2022. Calculate the retained earnings balance at June 30, 2022, after you have completed parts a to e. (Hint: Keep in mind that Treasury Stock is a contra account.) Assume that the Retained Earnings balance on July 1, 2021, was $9,063, 062 (in thousands) and that net income for the year ended June 30, 2022, was $938 (in thousands). The 2022 preferred dividends were paid in full, and no other dividend transactions were recorded during the year. Verify that the amount shown in the solution to part f is correct. (Hint: Prepare a statement of retained earnings or do a T - account analysis to determine the June 30, 2022, balance.)

DeZurik Corporation had the following stockholders' equity section in its June 30, 2022, balance sheet (in thousands, except share and per share amounts): June 30 (in thousands) 2022 Paid-in capital: $5.0 Preferred stock, $ ? par value, cumulative, 50,000 shares authorized, 24,000 shares issued and outstanding$ 1,500Common stock, $2 par value, 4,000,000 shares authorized, 870,000 shares issued, 736,000 shares outstanding Additional paid-in capital on common stock5,050 Retained earnings Less: Treasury common stock, at cost, ? shares Total stockholders' equity$ 15,090 Required: Calculate the par value per share of preferred stock and determine the preferred stock dividend percentage. Calculate the amount that should be shown on the balance sheet for common stock at June 30, 2022. What was the average issue price of common stock shown on the June 30, 2022, balance sheet? How many shares of treasury stock does DeZurik Corporation own at June 30, 2022? Assume that the treasury shares were purchased for $16 per share. Calculate the amount that should be shown on the balance sheet for treasury stock at June 30, 2022. Calculate the retained earnings balance at June 30, 2022, after you have completed parts a to e. (Hint: Keep in mind that Treasury Stock is a contra account.) Assume that the Retained Earnings balance on July 1, 2021, was $9,063, 062 (in thousands) and that net income for the year ended June 30, 2022, was $938 (in thousands). The 2022 preferred dividends were paid in full, and no other dividend transactions were recorded during the year. Verify that the amount shown in the solution to part f is correct. (Hint: Prepare a statement of retained earnings or do a T - account analysis to determine the June 30, 2022, balance.)

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 5MCQ
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DeZurik Corporation had the following stockholders' equity section in its June 30, 2022, balance sheet (in thousands, except share and per share amounts): June 30 (in thousands) 2022 Paid-in capital: $5.0 Preferred stock, $ ? par value, cumulative, 50,000 shares authorized, 24,000 shares issued and outstanding$ 1,500Common stock, $2 par value, 4,000,000 shares authorized, 870,000 shares issued, 736,000 shares outstanding Additional paid-in capital on common stock5,050 Retained earnings Less: Treasury common stock, at cost, ? shares Total stockholders' equity$ 15,090 Required: Calculate the par value per share of preferred stock and determine the preferred stock dividend percentage. Calculate the amount that should be shown on the balance sheet for common stock at June 30, 2022. What was the average issue price of common stock shown on the June 30, 2022, balance sheet? How many shares of treasury stock does DeZurik Corporation own at June 30, 2022? Assume that the treasury shares were purchased for $16 per share. Calculate the amount that should be shown on the balance sheet for treasury stock at June 30, 2022. Calculate the retained earnings balance at June 30, 2022, after you have completed parts a to e. (Hint: Keep in mind that Treasury Stock is a contra account.) Assume that the Retained Earnings balance on July 1, 2021, was $9,063, 062 (in thousands) and that net income for the year ended June 30, 2022, was $938 (in thousands). The 2022 preferred dividends were paid in full, and no other dividend transactions were recorded during the year. Verify that the amount shown in the solution to part f is correct. (Hint: Prepare a statement of retained earnings or do a T - account analysis to determine the June 30, 2022, balance.)
Transcribed Image Text:DeZurik Corporation had the following stockholders' equity section in its June 30, 2022, balance sheet (in thousands, except share and per share amounts): June 30 (in thousands) 2022 Paid-in capital: $5.0 Preferred stock, $ ? par value, cumulative, 50,000 shares authorized, 24,000 shares issued and outstanding$ 1,500Common stock, $2 par value, 4,000,000 shares authorized, 870,000 shares issued, 736,000 shares outstanding Additional paid-in capital on common stock5,050 Retained earnings Less: Treasury common stock, at cost, ? shares Total stockholders' equity$ 15,090 Required: Calculate the par value per share of preferred stock and determine the preferred stock dividend percentage. Calculate the amount that should be shown on the balance sheet for common stock at June 30, 2022. What was the average issue price of common stock shown on the June 30, 2022, balance sheet? How many shares of treasury stock does DeZurik Corporation own at June 30, 2022? Assume that the treasury shares were purchased for $16 per share. Calculate the amount that should be shown on the balance sheet for treasury stock at June 30, 2022. Calculate the retained earnings balance at June 30, 2022, after you have completed parts a to e. (Hint: Keep in mind that Treasury Stock is a contra account.) Assume that the Retained Earnings balance on July 1, 2021, was $9,063, 062 (in thousands) and that net income for the year ended June 30, 2022, was $938 (in thousands). The 2022 preferred dividends were paid in full, and no other dividend transactions were recorded during the year. Verify that the amount shown in the solution to part f is correct. (Hint: Prepare a statement of retained earnings or do a T - account analysis to determine the June 30, 2022, balance.)
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