Foley Corporation has the following capital structure at the beginning of the year: 6% Preferred stock, $50 par value, cumulative and participating, 20,000 shares authorized, 6,720 shares issued and outstanding $ 336,000 Common stock, $10 par value, 600,000 shares authorized, 50,400 shares issued and outstanding 504,000 Paid-in capital in excess of par 110,000 Total paid-in capital 950,000 Retained earnings 440,000 Total stockholders' equity $1,390,000 Instructions (a) Record the following transactions which occurred consecutively (show all calculations). 2/1: 3,000 common stock shares were repurchased for $12 each; 4/15: $165,000 cash dividend was declared and paid to preferred and common stockholders; (Note: dividends are 3-years in arrears) 7/31: 8,500 new shares of common stock were sold to investors for $14 each. 10/31: 13% stock dividend was declared and paid on common stock when the current selling price of the stock was $18 per share. (b) Assume that net income for the year was $235,000. Incorporating all of the above information, construct the stockholders' equity section at the end of the fiscal year
Foley Corporation has the following capital structure at the beginning of the year:
6%
20,000 shares authorized, 6,720 shares issued and outstanding $ 336,000
Common stock, $10 par value, 600,000 shares authorized,
50,400 shares issued and outstanding 504,000
Paid-in capital in excess of par 110,000
Total paid-in capital 950,000
Total
Instructions
(a) Record the following transactions which occurred consecutively (show all calculations).
2/1: 3,000 common stock shares were repurchased for $12 each;
4/15: $165,000 cash dividend was declared and paid to preferred and common stockholders;
(Note: dividends are 3-years in arrears)
7/31: 8,500 new shares of common stock were sold to investors for $14 each.
10/31: 13% stock dividend was declared and paid on common stock when the current selling price of
the stock was $18 per share.
(b) Assume that net income for the year was $235,000. Incorporating all of the above information, construct
the stockholders' equity section at the end of the fiscal year
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