None Headland Company had the following stockholders' equity as of January 1, 2025:Common stock, $1 par value, 119,000 shares issued$119,000Paid-in capital in excess of par-common stockRetained earnings768,000391,000Total stockholders' equity$1,278,000During 2025, the following transactions occurred:Feb. 16Mar. 8Apr. 11May 8Headland repurchased 4,500 shares of treasury stock at a price of $16 per share.200 shares of treasury stock repurchased above were reissued at $17 per share.700 shares of treasury stock repurchased above were reissued at $13 per share.2,200 shares of treasury stock repurchased above were reissued at $19 per share.Prepare the journal entries to record the treasury stock transactions in 2025, assuming Headland uses the cost method. (Creditaccount titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" forthe account titles and enter O for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in theproblem.)DateAccount Titles and ExplanationFeb. 16Treasury StockCashMar. 8CashRetained EarningsTreasury StockApr. 11CashMay 8Debit7200034009100Retained Earnings2100Treasury StockCashTreasury StockPaid-in Capital from Treasury Stock41800Credit72000200320011200352006600

Journal Entries:Stockholder's Equity is a section of the balance sheet that includes common stock…

Answered: Headland Company had the following…

Cornerstones of Financial Accounting

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Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 84PSB: Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following...

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Raun Company had the following equity items as of December 31, 2019: Preferred stock, 9% cumulative, 100 par, convertible Paid-in capital in excess of par value on preferred stock Common stock, 1 stated value Paid-in capital in excess of stated value on common stock| Retained earnings The following additional information about Raun was available for the year ended December 31, 2019: 1. There were 2 million shares of preferred stock authorized, of which 1 million were outstanding. All 1 million shares outstanding were issued on January 2, 2016, for 120 a share. The preferred stock is convertible into common stock on a 1-for-1 basis until December 31, 2025; thereafter, the preferred stock ceases to be convertible and is callable at par value by the company. No preferred stock has been converted into common stock, and there were no dividends in arrears at December 31, 2019. 2. The common stock has been issued at amounts above stated value per share since incorporation in 2002. Of the 5 million shares authorized, 3,580,000 were outstanding at January 1, 2019. The market price of the outstanding common stock has increased slowly but consistently for the last 5 years. 3. Raun has an employee share option plan where certain key employees and officers may purchase shares of common stock at 100% of the marker price at the date of the option grant. All options are exercisable in installments of one-third each year, commencing 1 year after the date of the grant, and expire if not exercised within 4 years of the grant date. On January 1, 2019, options for 70,000 shares were outstanding at prices ranging from 47 to 83 a share. Options for 20,000 shares were exercised at 47 to 79 a share during 2019. During 2019, no options expired and additional options for 15,000 shares were granted at 86 a share. The 65,000 options outstanding at December 31, 2019, were exercisable at 54 to 86 a share; of these, 30,000 were exercisable at that date at prices ranging from 54 to 79 a share. 4. Raun also has an employee share purchase plan whereby the company pays one-half and the employee pays one-half of the market price of the stock at the date of the subscription. During 2019, employees subscribed to 60,000 shares at an average price of 87 a share. All 60,000 shares were paid for and issued late in September 2019. 5. On December 31, 2019, there was a total of 355,000 shares of common stock set aside for the granting of future share options and for future purchases under the employee share purchase plan. The only changes in the shareholders equity for 2019 were those described previously, the 2019 net income, and the cash dividends paid. Required: Prepare the shareholders equity section of Rauns balance sheet at December 31, 2019. Substitute, where appropriate, Xs for unknown dollar amounts. Use good form and provide full disclosure. Write appropriate notes as they should appear in the publisher financial statements.
Calculating the Number of Shares Issued Castalia Inc. issued shares of its $0.80 par value common stock on September 4, 2019, for $8 per share. The Additional Paid-In Capital-Common Stock account was credited for 5612,000 in the journal entry to record this transaction. Required: How many shares were issued on September 4, 2019?
Contributed Capital Adams Companys records provide the following information on December 31, 2019: Additional information: 1. Common stock has a 5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are outstanding. 2. Preferred stock has a 100 par value, 3,000 shares are authorized, 800 shares have been issued and are outstanding. Two hundred shares have been subscribed at 120 per share. The stock pays an 8% dividend, is cumulative, and is callable at 130 per share. 3. Bonds payable mature on January 1, 2023. They carry a 12% annual interest rate, payable semiannually. Required: Prepare the Contributed Capital section of the December 31, 2019, balance sheet for Adams. Include appropriate parenthetical notes.
Stock Dividends Crystal Corporation has the following information regarding its common stock: S10 par. with 500.000 shares authorized, 213,000 shares issued, and 183,700 shares outstanding. On August 22, 2019, Crystal declared and paid a 15% stock dividend when the market price of the common stock was $30 per share. Required: Prepare the journal entries to record declaration and payment of this stock dividend. Prepare the journal entries to record declaration and payment assuming it was a 30% stock dividend.
Outstanding Stock Lars Corporation shows the following information in the stockholders equity section of its balance sheet: The par value of common stock is S5, and the total balance in the Common Stock account is $225,000. There are 13,000 shares of treasury stock. Required: What is the number of shares outstanding? Use the following information for Exercises 10-58 and 10-59: Stahl Company was incorporated as a new business on January 1, 2019. The company is authorized to issue 600,000 shares of $2 par value common stock and 80,000 shares of 6%, S20 par value, cumulative preferred stock. On January 1, 2019, the company issued 75,000 shares of common stock for $15 per share and 5,000 shares of preferred stock for $25 per share. Net income for the year ended December 31, 2019, was $500,000.
Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following equity accounts and balances: During 2020, Stanley Utilities engaged in the following transactions involving its equity accounts: Sold 3,300 shares of common stock for $15 per share. Sold 1,000 shares of 12%, $100 par preferred stock at $105 per share. Declared and paid cash dividends of $8,000. Repurchased 1,000 shares of treasury stock (common) for $38 per share. Sold 400 of the treasury shares for $42 per share. Required: Prepare the journal entries for Transactions a through e. Assume that 2020 net income was $87,000. Prepare a statement of stockholders equity at December 31, 2020.
Coronado Company had the following stockholders' equity as of January 1, 2025. Common stock, $5 par value, 19.100 shares issued Paid-in capital in excess of par-common stock Retained earnings Total stockholders' equity During 2025, the following transactions occurred. Feb. 1 Mar. 1 Mar. 18 Apr. 22 May 1 $95,500 304,000 314,000 $713,500 Coronado repurchased 2,150 shares of treasury stock at a price of $20 per share. 720 shares of treasury stock repurchased above were reissued at $18 per share. 530 shares of treasury stock repurchased above were reissued at $13 per share. 630 shares of treasury stock repurchased above were reissued at $22 per share. Remaining treasury shares are retired.
Whispering Company had the following stockholders' equity as of January 1, 2025. Common stock, $5 par value, 18,800 shares issued Paid-in capital in excess of par-common stock Retained earnings Total stockholders' equity During 2025, the following transactions occurred. Feb. 1 Mar. 1 Mar. 18 Apr. 22 May 1 (2) $94,000 298,000 319,000 $711,000 Whispering repurchased 2,100 shares of treasury stock at a price of $21 per share. 780 shares of treasury stock repurchased above were reissued at $19 per share. 510 shares of treasury stock repurchased above were reissued at $13 per share. 590 shares of treasury stock repurchased above were reissued at $23 per share. Remaining treasury shares are retired.
On January 1, 2022, Skysong, Inc. had the following stockholders' equity accounts. Common Stock ($12 par value, 78,800 shares issued and outstanding) Paid-in Capital in Excess of Par-Common Stock Retained Earnings During the year, the following transactions occurred. Jan. 15 Feb. 15 Apr. 15 May 15 July 1 . Dec. 1 Dec. 31 $945,600 195,000 521,000 Declared a $1 cash dividend per share to stockholders of record on January 31, payable February 15. Paid the dividend declared in January. Declared a 5% stock dividend to stockholders of record on April 30, distributable May 15. On April 15, the market price of the stock was $16 per share. Issued the shares for the stock dividend. Announced a 2-for-1 stock split. The market price per share prior to the announcement was $14. (The new par value is $6.) Declared a $0.80 per share cash dividend to stockholders of record on December 15, payable January 10, 2023. Determined that net income for the year was $250,000.
The stockholders' equity section of Riverbed Corporation's balance sheet as of December 31, 2025 is as follows: Stockholders' Equity Common stock, $5 par value; authorized, 1,900,000 shares; issued, 380,000 shares Paid-in capital in excess of par Retained earnings The following events occurred during 2026: 1. 2. 3. 4. 5. 6. 7. Jan. 5 Jan. 16 Feb. 10 March 1 April 1 July 1 Aug, 1 $1,900,000 825,000 3,200,000 $5,925,000 28,000 shares of authorized and unissued common stock were sold for $8 per share. Declared a cash dividend of 20 cents per share, payable February 15 to stock-holders of record on February 5. 40,000 shares of authorized and unissued common stock were sold for $11 per share. A 30% stock dividend was declared and issued. Fair value per share is currently $14. A two-for-one split was carried out. The par value of the stock was to be reduced to $2.50 per share. Fair value on March 31 was $18 per share. A 15% stock dividend was declared and issued. Fair value is currently $10…
On January 1, 2022, Whispering Winds Corp. had the following stockholders' equity balances. Common Stock (583,000 shares issued) Paid-in Capital in Excess of Par-Common Stock Common Stock Dividends Distributable Retained Earnings 1. During 2022, the following transactions and events occurred. 2. 3. 4. 5. $1,749,000 6. 477,000 174,900 577,000 Issued 58,300 shares of $3 par value common stock as a result of 10% stock dividend declared on December 15, 2021. Issued 30,500 shares of common stock for cash at $5 per share. Purchased 28,000 shares of common stock for the treasury at $6 per share. Declared and paid a cash dividend of $112,000. Sold 7,000 shares of treasury stock for cash at $6 per share. Earned net income of $342,000. Prepare a stockholders' equity statement for the year. (If an amount reduces the account balance then enter with negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
On January 1, 2022, Monty Corp. had the following stockholders' equity balances. Common Stock (535,000 shares issued) Paid-in Capital in Excess of Par-Common Stock Common Stock Dividends Distributable Retained Earnings During 2022, the following transactions and events occurred. 1. 2. 3. 4. 5. $1,605,000 486,000 240,750 607,000 6. Issued 80,250 shares of $3 par value common stock as a result of 15% stock dividend declared on December 15, 2021. Issued 32,500 shares of common stock for cash at $5 per share. Purchased 27,000 shares of common stock for the treasury at $6 per share. Declared and paid a cash dividend of $110,000. Sold 8,400 shares of treasury stock for cash at $6 per share. Earned net income of $345,000.

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