**Title: Analyzing Stockholders' Equity for Delray Company****Overview:**Delray Company provides a detailed report of its stockholders' equity components as of January 1, along with transactions affecting these accounts throughout the year. The initial equity consists of common stock, paid-in capital, and retained earnings.**Starting Stockholders' Equity:**- Common stock ($10 par value, 120,000 shares authorized, 50,000 shares issued and outstanding): $500,000- Paid-in capital in excess of par value, common stock: $75,000- Retained earnings: $410,000- Total stockholders' equity: $985,000**Yearly Transactions:**1. **January 2:** Purchased 5,000 shares of its own stock at $23 per share.2. **January 5:** Directors declared a $2 per share cash dividend, payable on February 28, to the stockholders on record as of February 5.3. **February 28:** Paid the above dividend declared on January 5.4. **July 6:** Sold 2,500 shares of treasury stock at $27 per share.5. **August 22:** Sold 2,500 more shares from treasury stock at $19 per share.6. **September 5:** Directors declared another $2 per share cash dividend, payable on October 28, to the stockholders on record as of September 25.7. **October 28:** Paid the dividend declared on September 5.8. **December 31:** Closed the $259,500 credit balance (net income) in the Income Summary account to Retained Earnings.**Statement Preparation:**Students are required to prepare a Statement of Retained Earnings for Delray Corporation for the year ended December 31.**Diagram/Graph Explanation:**The image contains a form with sections for entering various figures to complete the Statement of Retained Earnings. This includes starting figures, adjustments based on transactions, and the final amount for retained earnings.*Note: The form is a structured layout where users fill in specific financial data to compute the year-end Retained Earnings.*

The statement of retained earnings, a crucial financial document, details the amount of earnings a company has accrued and held since its founding. The figures reveal a company's financial situation and the owner's perspective on expanding and reinvesting in the company. Answer : Statement of Retained Earning Statement: For the year 31 December Beginning Retained Earning $ 410,000 Add: Net Income $ 280,500 Less: Cash Dividend $ -90,000 Less: Cash Dividend $ -100,000 Ending Retained Earning $ 500,500

Business

Accounting

GL1101 (Algo) - Based on Problem 11-2A LO C3, P2, P3 Delray Company reports the following components of stockholders' equity on January 1. Common stock-$10 par value, 120,000 shares authorized, 50,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity During the year, the following transactions affected its stockholders' equity accounts. $ 500,000 75,000 410,000 $ 985,000 January 2 Purchased 5,000 shares of its own stock at $23 cash per share. January 5 Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockholders of record. ebruary 28 Paid the dividend declared on January 5. Sold 2,500 of its July 6 treasury shares at $27 cash per share. August 22 Sold 2,500 of its treasury shares at $19 cash per share. eptember 5 Directors declared a $2 per share cash dividend payable on October 28 to the September 25 stockholders of record. October 28 Paid the dividend declared on September 5. 21 Cloond the $259 500 credit balance from net income in the Income Summary account to Retained Earnings.

GL1101 (Algo) - Based on Problem 11-2A LO C3, P2, P3 Delray Company reports the following components of stockholders' equity on January 1. Common stock-$10 par value, 120,000 shares authorized, 50,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity During the year, the following transactions affected its stockholders' equity accounts. $ 500,000 75,000 410,000 $ 985,000 January 2 Purchased 5,000 shares of its own stock at $23 cash per share. January 5 Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockholders of record. ebruary 28 Paid the dividend declared on January 5. Sold 2,500 of its July 6 treasury shares at $27 cash per share. August 22 Sold 2,500 of its treasury shares at $19 cash per share. eptember 5 Directors declared a $2 per share cash dividend payable on October 28 to the September 25 stockholders of record. October 28 Paid the dividend declared on September 5. 21 Cloond the $259 500 credit balance from net income in the Income Summary account to Retained Earnings.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The stockholders’ equity section of Sheridan Inc. at the beginning of the current year appears below. Common stock, $10 par value, authorized 1,043,000 shares, 321,000 shares issued and outstanding $3,210,000 Paid-in capital in excess of par—common stock 562,000 Retained earnings 624,000 During the current year, the following transactions occurred. 1. The company issued to the stockholders 109,000 rights. Ten rights are needed to buy one share of stock at $30. The rights were void after 30 days. The market price of the stock at this time was $32 per share. 2. The company sold to the public a $204,000, 10% bond issue at 104. The company also issued with each $100 bond one detachable stock purchase warrant, which provided for the purchase of common stock at $28 per share. Shortly after issuance, similar bonds without warrants were selling at 96 and the warrants at $8. 3. All but 5,450 of the rights issued in (1) were exercised in 30 days. 4. At the end…
Presented below is information related to a company at the beginning of the year: Common Stock, $10 par $6,700 Retained Earnings 4,700 During the year, 10 shares were reacquired at $11 per share. How much is the total stockholders' equity after the treasury stock transaction, assuming the company accounts for treasury stock under the cost method?
Please help me
Please help me jn this sir accounting question
Dog
6. The equity sections for Atticus Group at the beginning of the year (January 1) and end of the year (December 31) follow. Stockholders’ Equity (January 1) Common stock—$6 par value, 100,000 shares authorized, 35,000 shares issued and outstanding $ 210,000 Paid-in capital in excess of par value, common stock 170,000 Retained earnings 320,000 Total stockholders’ equity $ 700,000 Stockholders’ Equity (December 31) Common stock—$6 par value, 100,000 shares authorized, 41,000 shares issued, 5,000 shares in treasury $ 246,000 Paid-in capital in excess of par value, common stock 218,000 Retained earnings ($40,000 restricted by treasury stock) 400,000 864,000 Less cost of treasury stock (40,000) Total stockholders’ equity $ 824,000 The following transactions and events affected its equity during the year. January 5 Declared a $0.50 per share cash dividend, date of record January 10. March 20 Purchased treasury stock for cash. April 5…
Goda
Kohler Corporation reports the following components of stockholders’ equity at December 31 of the prior year. Common stock—$25 par value, 100,000 shares authorized, 60,000 shares issued and outstanding $ 1,500,000 Paid-in capital in excess of par value, common stock 80,000 Retained earnings 460,000 Total stockholders' equity $ 2,040,000 During the current year, the following transactions affected its stockholders’ equity accounts. January 2 Purchased 6,000 shares of its own stock at $15 cash per share. January 5 Directors declared a $4 per share cash dividend payable on February 28 to the February 5 stockholders of record. February 28 Paid the dividend declared on January 5. July 6 Sold 3,000 of its treasury shares at $19 cash per share. August 22 Sold 3,000 of its treasury shares at $11 cash per share. September 5 Directors declared a $4 per share cash dividend payable on October 28 to the September 25 stockholders of record. October 28 Paid the dividend…
Statement of Stockholders' Equity The stockholders' equity T accounts of I-Cards Inc. for the fiscal year ended December 31, 20Y9, are as follows. COMMON STOCK Jan. 1 Balance 1,300,000 Apr. 14 Issued 11,400 570,000 shares Dec. 31 Balance 1,870,000 PAID-IN CAPITAL IN EXCESS OF PAR Jan. 1 Balance 208,000 Apr. 14 Issued 11,400 136,800 shares Dec. 31 Balance 344,800 TREASURY STOCK Aug. 7 Purchased 1,900 shares 91,200 RETAINED EARNINGS Mar. 31 Dividend 33,000 Jan. 1 Balance 2,260,000 June. 30 Dividend 33,000 Dec. 31 Closing Sept. 30 Dividend 33,000 (Net income) 339,000 Dec. 31 Dividend 33,000 Dec. 31 Balance 2,467,000 Prepare a statement of stockholders' equity for the year ended December 31, 20Y9. If an amount box does not require an entry I-Cards Inc. Statement of Stockholders' Equity For the Year Ended December 31, 20Y9
Reporting Stockholders' Equity Using the following accounts and balances, prepare the “Stockholders’ Equity” section of the balance sheet. 30,000 shares of common stock authorized, and 1,000 shares have been reacquired. Common Stock, $60 par $1,080,000 Paid-In Capital from Sale of Treasury Stock 43,000 Paid-In Capital in Excess of Par—Common Stock 378,000 Retained Earnings 594,000 Treasury Stock 22,000 Balance Sheet Stockholders' Equity Paid-in capital: $ Paid-in capital, common stock $ Total paid-in capital $ Total $ Total stockholders' equity $
The stockholders' equity section of Cullumber Company's balance sheet at December 31 is presented here. Cullumber Company Balance Sheet(Partial) Stockholders' equity Paid-in capital Preferred stock, cumulative, 8,000 shares authorized, 4,000 shares issued and outstanding $320,000 Common stock, no par, 700,000 shares authorized, 500,000 shares issued 2,500,000 Total paid-in capital Retained earnings Total paid-in capital and retained earnings Less: Treasury stock (6,000 common shares) Total stockholders' equity 2,820,000 1,858,000 4,678,000 31,200 $4,646,800 From a review of the stockholders' equity section, answer the following questions. (a) How many shares of common stock are outstanding? shares (b) Assuming there is a stated value, what is the stated value of the common stock? $ per share (c) What is the par value of the preferred stock? 6A $ per share (d) If the annual dividend on preferred stock is $16,000, what is the dividend rate on preferred stock? % (e) If dividends of…
The year end balance sheet of CP, In., include the following stockholders’ equity section (with certain details omitted). Stockholders’ equity: Capital stock: 7% cumulative preferred stock, $100 par value……………. $15,000,000 Common stock, $5 par value, 5,000,000 shares Authorized, 4,000,000 shares issued and outstanding…… 20,000,000 Additional paid in capital: Common stock……………………………………………………………… 44,000,000 Retained earnings………………………………………………………… 64,450,000 Total stockholders’ equity…………………………………………… $143,450,000 From this information, I must compute the answers to the following question. 1. What is the amount of legal capital and the amount of total paid-in capital? 2. What is the book value per share of common stock, assuming no dividends in arrears? 3. Is it possible to determine the fair market value per share of common stock from the stock-holders' equity section? Explain