Identifying and Analyzing Financial Statement Effects of Dividends The stockholders' equity of DiFrancesco Company at March 31, 2019 is shown below. 4% preferred stock, $1,000 par value, 25,000 shares authorized; 10,000 shares issued and outstanding $10,000,000 Common stock, $1 par value, 3,000,000 shares authorized; 700,000 shares issued and outstanding 700,000 Additional paid-in capital-preferred stock 60,000 Additional paid-in capital-common stock Retained earnings Total stockholders' equity The following transactions, among others, occurred during the fiscal year ended March 31, 2020. April 15, 2019 Declare and pay preferred dividends of $420,000. April 15, 2019 Declare and pay common dividends of $1.50 per share. October 1, 2019 Execute a 3-for-1 stock split of the common stock when the stock price was $147 per share. March 1, 2020 Declare and pay common dividends of $0.70 per share. (a) Use the financial statement effects template to indicate the effects of these separate transactions. Note: Use negative signs with answers, when appropriate. Balance Sheet Transaction Apr. 15 Apr. 15 Oct. 1 Mar. 1 17,150,000 51,455,973 $79,365,973 Cash + Noncash Asset Assets = Liabilities + Contributed + Capital Earned Capital Revenue Income Statement Expenses = Net Income (b) At March 31, 2020, the company reported net income for the year of $8,900,610. Compute retained earnings as of March 31, 2020. $
Identifying and Analyzing Financial Statement Effects of Dividends The stockholders' equity of DiFrancesco Company at March 31, 2019 is shown below. 4% preferred stock, $1,000 par value, 25,000 shares authorized; 10,000 shares issued and outstanding $10,000,000 Common stock, $1 par value, 3,000,000 shares authorized; 700,000 shares issued and outstanding 700,000 Additional paid-in capital-preferred stock 60,000 Additional paid-in capital-common stock Retained earnings Total stockholders' equity The following transactions, among others, occurred during the fiscal year ended March 31, 2020. April 15, 2019 Declare and pay preferred dividends of $420,000. April 15, 2019 Declare and pay common dividends of $1.50 per share. October 1, 2019 Execute a 3-for-1 stock split of the common stock when the stock price was $147 per share. March 1, 2020 Declare and pay common dividends of $0.70 per share. (a) Use the financial statement effects template to indicate the effects of these separate transactions. Note: Use negative signs with answers, when appropriate. Balance Sheet Transaction Apr. 15 Apr. 15 Oct. 1 Mar. 1 17,150,000 51,455,973 $79,365,973 Cash + Noncash Asset Assets = Liabilities + Contributed + Capital Earned Capital Revenue Income Statement Expenses = Net Income (b) At March 31, 2020, the company reported net income for the year of $8,900,610. Compute retained earnings as of March 31, 2020. $
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Identifying and Analyzing Financial Statement Effects of Dividends
The stockholders' equity of DiFrancesco Company at March 31, 2019 is shown below.
4% preferred stock, $1,000 par value, 25,000 shares authorized; 10,000 shares issued and outstanding $10,000,000
Common stock, $1 par value, 3,000,000 shares authorized; 700,000 shares issued and outstanding
700,000
Additional paid-in capital-preferred stock
60,000
Additional paid-in capital-common stock
Retained earnings
Total stockholders' equity
The following transactions, among others, occurred during the fiscal year ended March 31, 2020.
April 15, 2019 Declare and pay preferred dividends of $420,000.
April 15, 2019 Declare and pay common dividends of $1.50 per share.
October 1, 2019 Execute a 3-for-1 stock split of the common stock when the stock price was $147 per share.
March 1, 2020 Declare and pay common dividends of $0.70 per share.
(a) Use the financial statement effects template to indicate the effects of these separate transactions.
Note: Use negative signs with answers, when appropriate.
Balance Sheet
Transaction
Apr. 15
Apr. 15
Oct. 1
Mar. 1
Cash
Asset
+ Noncash
Assets
17,150,000
51,455,973
$79,365,973
= Liabilities + Contributed +
Capital
Earned
Capital
Revenue
Income Statement
Net
Expenses = Income
(b) At March 31, 2020, the company reported net income for the year of $8,900,610. Compute retained earnings as of March 31, 2020.
$
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