Holiday Corporation had the following stockholders' equity amounts on their balance sheet on December 31, 2020 (the end of their gth year of business): Common Stock, $10 par, 1,000,000 shares authorized, shares outstanding shares Issued, $2,300,000 8,400,000 Paid in Capital in Excess of Par - Common Paid in Capital from Treasury Stock Accumulated Other Comprehensive Income 10,000 160,000 Retained Earnings 5.321.000 Total Stockholders' Equity $16,191,000 During 2021, Holiday completed the following transactions: March 1 Sold 24,000 shares of common stock for $52 per share in cash. June 1 Purchased 12,000 shares of our own company stock for cash when the price
Holiday Corporation had the following stockholders' equity amounts on their balance sheet on December 31, 2020 (the end of their gth year of business): Common Stock, $10 par, 1,000,000 shares authorized, shares outstanding shares Issued, $2,300,000 8,400,000 Paid in Capital in Excess of Par - Common Paid in Capital from Treasury Stock Accumulated Other Comprehensive Income 10,000 160,000 Retained Earnings 5.321.000 Total Stockholders' Equity $16,191,000 During 2021, Holiday completed the following transactions: March 1 Sold 24,000 shares of common stock for $52 per share in cash. June 1 Purchased 12,000 shares of our own company stock for cash when the price
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
Chapter15: Contributed Capital
Section: Chapter Questions
Problem 16P: Treasury Stock, Cost Method Bush-Caine Company reported the following data on its December 31, 2018,...
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![Holiday Corporation had the following stockholders' equity amounts on their balance sheet on
December 31, 2020 (the end of their 8th year of business):
Common Stock, $10 par, 1,000,000 shares authorized,
shares outstanding
shares
Issued,
$2,300,000
Paid in Capital in Excess of Par- Common
৪,400,000
10,000
Paid in Capital from Treasury Stock
Accumulated Other Comprehensive Income
160,000
Retained Earnings
5.321.000
Total Stockholders' Equity
$16,191,000
During 2021, Holiday completed the following transactions:
Sold 24,000 shares of common stock for $52 per share in cash.
Purchased 12,000 shares of our own company stock for cash when the price
March 1
June 1
dropped to $47 per share. Holiday plans to resell the shares when the price goes
back up.
November 1
Resold 3,000 of the shares from June 1 at $53 per share
December 1
Declared a $0.50 per share cash dividend
December 31 Reported $600,000 of net income
Answer the following questions. Please show and label your work.
a. How many shares should be in the blanks beside Common Stock on December 31, 2020?
b. How many shares should be in the blanks beside Common Stock on December 31, 2021?
c. Calculate Earnings Per Share in 2021. Show your calculations
d. How can Holiday have Paid in Capital from Treasury Stock on December 31, 2020
without having any Treasury Stock?
e. In which section(s) of the cash flow statement should the June I transaction be reported
and for what amount(s)?
f. What is the balance of Retained Earnings on December 31, 2021?
g. Give two possible reasons Holiday might have "Accumulated Other Comprehensive
Income" on their balance sheet?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb905f322-e342-42b7-942a-fb7e9c1e8cfb%2F8fe81f1d-6b67-4fc5-8c59-7edd9720d634%2Fk28yci_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Holiday Corporation had the following stockholders' equity amounts on their balance sheet on
December 31, 2020 (the end of their 8th year of business):
Common Stock, $10 par, 1,000,000 shares authorized,
shares outstanding
shares
Issued,
$2,300,000
Paid in Capital in Excess of Par- Common
৪,400,000
10,000
Paid in Capital from Treasury Stock
Accumulated Other Comprehensive Income
160,000
Retained Earnings
5.321.000
Total Stockholders' Equity
$16,191,000
During 2021, Holiday completed the following transactions:
Sold 24,000 shares of common stock for $52 per share in cash.
Purchased 12,000 shares of our own company stock for cash when the price
March 1
June 1
dropped to $47 per share. Holiday plans to resell the shares when the price goes
back up.
November 1
Resold 3,000 of the shares from June 1 at $53 per share
December 1
Declared a $0.50 per share cash dividend
December 31 Reported $600,000 of net income
Answer the following questions. Please show and label your work.
a. How many shares should be in the blanks beside Common Stock on December 31, 2020?
b. How many shares should be in the blanks beside Common Stock on December 31, 2021?
c. Calculate Earnings Per Share in 2021. Show your calculations
d. How can Holiday have Paid in Capital from Treasury Stock on December 31, 2020
without having any Treasury Stock?
e. In which section(s) of the cash flow statement should the June I transaction be reported
and for what amount(s)?
f. What is the balance of Retained Earnings on December 31, 2021?
g. Give two possible reasons Holiday might have "Accumulated Other Comprehensive
Income" on their balance sheet?
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