Finishing Touches has two classes of stock authorized: 8%, $10 par preterred, and $1 par Value affect stockholders' equity during 2021, its first year of operations: January 2 Issues 100, 000 shares of common stock for $28 per share. February 6 Issues 2,300 shares of 8% preferred stock for $12 per share. September 1e Purchases 10,000 shares of its own common stock for $33 per share. December 15 Resells 5, e00 shares of treasury stock at $38 per share. In its first year of operations, Finishing Touches has net income of $153,000 and pays dividends at the end of the year of $95,000 ($1 per share) on all common shares outstanding and $1,840 on all preferred shares outstanding. Required: Prepare the stockholders' equity section of the balance sheet for Finishing Touches as of December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.) FINISHING TOUCHES Balance Sheet (Stockholders' Equity Section) December 31, 2021 Stockholders' equity: Total paid-in capital Total stockholders' equity 2$
Finishing Touches has two classes of stock authorized: 8%, $10 par preterred, and $1 par Value affect stockholders' equity during 2021, its first year of operations: January 2 Issues 100, 000 shares of common stock for $28 per share. February 6 Issues 2,300 shares of 8% preferred stock for $12 per share. September 1e Purchases 10,000 shares of its own common stock for $33 per share. December 15 Resells 5, e00 shares of treasury stock at $38 per share. In its first year of operations, Finishing Touches has net income of $153,000 and pays dividends at the end of the year of $95,000 ($1 per share) on all common shares outstanding and $1,840 on all preferred shares outstanding. Required: Prepare the stockholders' equity section of the balance sheet for Finishing Touches as of December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.) FINISHING TOUCHES Balance Sheet (Stockholders' Equity Section) December 31, 2021 Stockholders' equity: Total paid-in capital Total stockholders' equity 2$
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 9P
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Question
![Finishing Touches has two classes of stock authorized: 8%, $10 par preferred, and $1 par value common. The following transactions
affect stockholders' equity during 2021, its first year of operations:
January 2 Issues 100,000 shares of common stock for $28 per share.
February
September 10 Purchases 10,000 shares of its own common stock for $33 per share.
December 15 Resells 5,000 shares of treasury stock at $38 per share.
6 Issues 2,300 shares of 8% preferred stock for $12 per share.
In its first year of operations, Finishing Touches has net income of $153,000 and pays dividends at the end of the year of $95,000 ($1
per share) on all common shares outstanding and $1,840 on all preferred shares outstanding.
Required:
Prepare the stockholders' equity section of the balance sheet for Finishing Touches as of December 31, 2021. (Amounts to be
deducted should be indicated by a minus sign.)
FINISHING TOUCHES
Balance Sheet
(Stockholders' Equity Section)
December 31, 2021
Stockholders' equity:
Total paid-in capital
0.
Total stockholders' equity
%24](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fed18415a-af27-44e8-aa80-ad5d454cc154%2F5e781c72-ca09-4e8c-9110-08a1cd31a2bf%2Fiss8fik_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Finishing Touches has two classes of stock authorized: 8%, $10 par preferred, and $1 par value common. The following transactions
affect stockholders' equity during 2021, its first year of operations:
January 2 Issues 100,000 shares of common stock for $28 per share.
February
September 10 Purchases 10,000 shares of its own common stock for $33 per share.
December 15 Resells 5,000 shares of treasury stock at $38 per share.
6 Issues 2,300 shares of 8% preferred stock for $12 per share.
In its first year of operations, Finishing Touches has net income of $153,000 and pays dividends at the end of the year of $95,000 ($1
per share) on all common shares outstanding and $1,840 on all preferred shares outstanding.
Required:
Prepare the stockholders' equity section of the balance sheet for Finishing Touches as of December 31, 2021. (Amounts to be
deducted should be indicated by a minus sign.)
FINISHING TOUCHES
Balance Sheet
(Stockholders' Equity Section)
December 31, 2021
Stockholders' equity:
Total paid-in capital
0.
Total stockholders' equity
%24
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