Eastport Inc. was organized on June 5, Year 1. It was authorized to issue 400,000 shares of $8 par common stock and 65,000shares of 5 percent cumulative class A preferred stock. The classstock transactions pertain to Eastport Inc.:stock had a stated value of $25 per share. The following1. Issued 25,000 shares of common stock for $13 per share.2. Issued 6,000 shares of the class A preferred stock for $30 per share.3. Issued 43,000 shares of common stock for $16 per share.RequiredPrepare the stockholders' equity section of the balance sheet immediately after these transactions have been recognized.EASTPORT INC.Balance Sheet (partial)For the Year Ended Year 1Stockholders' EquityAppropriated retained earningsCashCommon stockDividends payable

The stockholders' equity records the total capital that belongs to the shareholders. The equity…

Answered: Eastport Inc. was organized on June 5,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Feeney Corporation is authorized to issue 200,000 shares of $1 par value common stock and 50,000 shares of $10 par value preferred stock. During the year the company issued the following shares: Feb 2 Issued 20,000 shares of common stock, $1 par value, for cash of $40,000. Mar 17 Issued 2,000 shares of preferred stock, $10 par value, for cash of $25,000. May 24 Issued 10,000 shares of common stock, $1 par value, for cash of $30,000. Aug 15 Purchased 2,000 shares of common stock for $28,000 to put into the treasury. Oct 12 Sold 1,000 shares of treasury stock for $16 per share. a. How many common shares have been issued? b. How many common shares are outstanding? c. How many preferred shares…
On January 1, Vermont Corporation had 41,000 shares of $12 par value common stock issued and outstanding. All 41,000 shares had been issued in a prior period at $22 per share. On February 1, Vermont purchased 1,080 shares of treasury stock for $28 per share and later sold the treasury shares for $20 per share on March 1. The journal entry to record the purchase of the treasury shares on February 1 would include what?
Gilligan Corporation was established on February 15, Year 1. Gilligan is authorized to issue 500,000 shares of $6 par value common stock. As of December 30, Year 1, Gilligan's stockholders' equity accounts report the following balances: Common stock, $6 par, 500,000 shares authorized 61,000 shares issued and outstanding Paid-in capital in excess of par Common Multiple Choice Retained earnings Total Stockholders' Equity On December 31, Year 1, Gilligan decides to issue a 5% stock dividend. At the time of issue, the market price of the stock was $25 per share. What is the dollar value of the stock dividend issued by Gilligan Corporation? $18,300 $48,800 $76,250 $366,000 488,000 $114,500 $ 854,000 1,436,000 $ 2,290,000 Google Chrome
Subject: acounting
Sun Corporation received a charter that authorized the issuance of 80,000 shares of $6 par common stock and 20,000 shares of $100 par, 8 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation. Year 1 Jan. 5 Sold 12,000 shares of the $6 par common stock for $8 per share. 12 Sold 2,000 shares of the 8 percent preferred stock for $110 per share. Apr. 5 Sold 16,000 shares of the $6 par common stock for $10 per share. Dec.31 During the year, earned $318,500 in cash revenue and paid $238,300 for cash operating expenses. 31 Declared the cash dividend on the outstanding shares of preferred stock for Year 1. The dividend will be paid on February 15 to stockholders of record on January 10, Year 2. Year 2 Feb. 15 Paid the cash dividend declared on December 31, Year 1. Mar. 3 Sold 3,000 shares of the $100 par preferred stock for $120 per share. May. 5 Purchased 400 shares of the common stock as treasury stock at $12 per…
North Wind Aviation received its charter during January authorizing the following capital stock:Preferred stock: 8 percent, par $10, authorized 20,000 shares.Common stock: par $1, authorized 50,000 shares. The following transactions occurred during the first year of operations in the order given: Issued a total of 35,000 shares of the common stock for $20 per share. Issued 10,000 shares of the preferred stock at $21 per share. Issued 2,500 shares of the common stock at $25 per share and 1,000 shares of the preferred stock at $21. Net income for the first year was $43,000, but no dividends were declared. Required: Prepare the stockholders’ equity section of the balance sheet at December 31.
Eastport Incorporated was organized on June 5, Year 1. It was authorized to issue 300,000 shares of $10 par common stock and 50,000 shares of 5 percent cumulative class A preferred stock. The class A stock had a stated value of $50 per share. The following stock transactions pertain to Eastport Incorporated during Year 1: 1.Issued 15,000 shares of common stock for $12 per share. 2.Issued 5,000 shares of the class A preferred stock for $51 per share. Repurchased as treasury stock 500 shares of common stock for $8 per share. Sold 100 shares of treasury stock for $14 per share. Declared a $130,000 total dividend. Paid the dividend, with appropriate amounts going to preferred stock and common stock investors. Eastport reported a $479,000 net income for the year. Required Prepare general journal entries for these transactions. What amount of dividends went to common stock shareholders & preferred stock shareholders? Prepare the stockholders’ equity section of the balance sheet…
Sunshine Corp. was organized on Jan. 1 with authorization of 20,000 shares of $5 preferred stock, $100 par, and 200,000 shares of $25 par common stock. Indicate the account that should be recorded in the Description column of the Journal item (2) as the credit account and the dollar amount in the amount columns assuming that Sunshine Corp on Jan . 15 received cash for the issuance of 2,000 shares of preferred stock at par value. JOURNAL Date Description P.Ref DEBIT CREDIT Jan. 15 (1) (?) (2) (?) (2) (?) Group of answer choices Preferred Stock credit $200,000 Preferred Stock credit for $10,000 Cash credit for $200,000 Cash credit for $10,000
MacKenzie Mining Corporation is authorized to issue 50,000 shares of $500 par value 7% preferred stock. It is also authorized to issue 5,000,000 shares of $3 par value common stock. In its first year, the corporation has the following transactions: May 1 Issued 3,000 shares of preferred stock for cash at $750 per share May 23 Issued 6,000 shares of common stock at $12.50 per share Jun. 10 Issued 5,000 shares of common stock for equipment without a readily determinable value. The stock is currently trading at $11 per share Journalize the transactions.
Eastport Incorporated was organized on June 5, Year 1. It was authorized to issue 370,000 shares of $9 par common stock and 60,000 shares of 4 percent cumulative class A preferred stock. The class A stock had a stated value of $25 per share. The following stock transactions pertain to Eastport Incorporated: Issued 25,000 shares of common stock for $14 per share. Issued 14,000 shares of the class A preferred stock for $30 per share. Issued 49,000 shares of common stock for $17 per share. Requireda. Prepare general journal entries for these transactions.b. Prepare the stockholders’ equity section of the balance sheet immediately after these transactions.
The corporate charter of Blossom Corporation allows the issuance of a maximum of 4,260,000 shares of $1 par value common stock. During its first three years of operation, Blossom issued 2,215,200 shares at $15 per share. It later acquired 85,200 of these shares as treasury stock for $25 per share. Based on the above information, answer the following questions: (a) How many shares were authorized? Authorized shares i shares
Moon Corporation received a charter that authorized the issuance of 119,000 shares of $7 par common stock and 19,000 shares of $75 par, 8 percent cumulative preferred stock. Moon Corporation completed the following transactions during its first two years of operation. Year 1 January 5 Sold 17,850 shares of the $7 par common stock for $9 per share. January 12 Sold 1,900 shares of the 8 percent preferred stock for $85 per share. April 5 Sold 23,800 shares of the $7 par common stock for $11 per share. December 31 During the year, earned $302,000 in cash revenue and paid $240,100 for cash operating expenses. December 31 Declared the cash dividend on the outstanding shares of preferred stock for Year 1. The dividend will be paid on February 15 to stockholders of record on January 10, Year 2. December 31 Closed the revenue, expense, and dividend accounts to the retained earnings account. Year 2 February 15 Paid the cash dividend declared on December 31, Year 1. March 3…

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