Homework Help is Here – Start Your Trial Now!
Business
Accounting
nmon Stock l-in-Capital in Excess of Par Value

nmon Stock l-in-Capital in Excess of Par Value

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Hello, I am struggling with the questions marked with red x's. I think the thing that is holding me back, is I can't seem to figure out what exactly the number of outstanding shares is. 

General Journal Date Description Debit Credit Jan.8 Cash 390,000 v $ Common Stock 90,000 Paid-in-Capital in Excess of Par Value 300,000 Issued shares of common stock. Mar.12 Cash 210,000 v Treasury Stock 172,500 Paid-in-Capital from Treasury Stock 37,500 Sold shares of treasury stock. Jun.30 Stock Dividends Stock Dividend Distributable 0 x Paid-in-Capital in Excess of Par Value 0 x Declared stock dividend. Jul. 10 Stock Dividend Distributable 0 x Common Stock Issued shares of common stock declared as dividend. Oct.7 Treasury Stock 82,500 v Cash 82,500 Purchased shares of common stock for treasury. Dec.18 Cash Dividends Dividends Payable Declared cash dividend. Dec.31 Income Summary 426,250 V Retained earnings 426,250 v To close the income summary account. Dec.31 Retained earnings Stock dividends Cash Dividends To close the dividend accounts. > |> >
Transcribed Image Text:General Journal Date Description Debit Credit Jan.8 Cash 390,000 v $ Common Stock 90,000 Paid-in-Capital in Excess of Par Value 300,000 Issued shares of common stock. Mar.12 Cash 210,000 v Treasury Stock 172,500 Paid-in-Capital from Treasury Stock 37,500 Sold shares of treasury stock. Jun.30 Stock Dividends Stock Dividend Distributable 0 x Paid-in-Capital in Excess of Par Value 0 x Declared stock dividend. Jul. 10 Stock Dividend Distributable 0 x Common Stock Issued shares of common stock declared as dividend. Oct.7 Treasury Stock 82,500 v Cash 82,500 Purchased shares of common stock for treasury. Dec.18 Cash Dividends Dividends Payable Declared cash dividend. Dec.31 Income Summary 426,250 V Retained earnings 426,250 v To close the income summary account. Dec.31 Retained earnings Stock dividends Cash Dividends To close the dividend accounts. > |> >
Stockholders' Equity: Transactions and Statement The stockholders' equity section of Night Corporation's balance sheet at January 1 follows: Common stock, $6 par value, 300,000 shares authorized, 60,000 shares 360,000 issued, 6,000 shares in treasury Additional paid-in capital In excess of par value 600,000 From treasury stock 37,500 637,500 Retained earnings 435,000 1,432,500 Less: Treasury stock (6,000 shares) at cost 172,500 Total Stockholders’ Equity 1,260,000 The following transactions affecting stockholders’ equity occurred during the year: Jan. 8 Issued 15,000 shares of previously unissued common stock for $26 cash per share. Mar. 12 Sold all of the treasury shares for $35 cash per share. June 30 Declared a five percent stock dividend on all outstanding shares of common stock. The market value of the stock was $31 per share. July 10 Issued the stock dividend declared on June 30. Oct. 7 Acquired 2,500 shares of common stock as treasury stock at $33 cash per share. Dec. 18 Declared a cash dividend of $1.00 per outstanding common share, payable on January 9 to stockholders of record on December 31. Required a. Prepare journal entries to record the foregoing transactions. b. Prepare a statement of stockholders’ equity. Net income for the year is $426,250. Note: Use negative signs with your answers when appropriate (reduction to retained earnings, acquired treasury stock and treasury stock balances). Night Corporation Statement of Stockholders' Equity For Year Ended December 31 Paid-in-Capital Paid-in-Capital in Excess of Par Treasury Stock Common from Retained Treasury Stock Earnings Stock Total Balance, January 1 $ 360.000 v $ 600,000 v $ 37,500 v $ 435,000 v $ 36,000 x $ 1,260,000 15,000 v Common shares issued 90,000 v 300,000 v 390,000 v 6,000 v Treasury shares sold 37,500 v 172,500 v 210,000 v Stock Dividends Issued 0 x 0 x 0 x 2,500 v Treasury shares acquired (82,500) v (82,500) v Cash Dividends Declared 0 x 0 x Net Income 426,250 v 426.250 v Balance, December 31 $ 0 x $ 0 x $ 75,000 v $ 0 x $ 0 x $ 0 x
Transcribed Image Text:Stockholders' Equity: Transactions and Statement The stockholders' equity section of Night Corporation's balance sheet at January 1 follows: Common stock, $6 par value, 300,000 shares authorized, 60,000 shares 360,000 issued, 6,000 shares in treasury Additional paid-in capital In excess of par value 600,000 From treasury stock 37,500 637,500 Retained earnings 435,000 1,432,500 Less: Treasury stock (6,000 shares) at cost 172,500 Total Stockholders’ Equity 1,260,000 The following transactions affecting stockholders’ equity occurred during the year: Jan. 8 Issued 15,000 shares of previously unissued common stock for $26 cash per share. Mar. 12 Sold all of the treasury shares for $35 cash per share. June 30 Declared a five percent stock dividend on all outstanding shares of common stock. The market value of the stock was $31 per share. July 10 Issued the stock dividend declared on June 30. Oct. 7 Acquired 2,500 shares of common stock as treasury stock at $33 cash per share. Dec. 18 Declared a cash dividend of $1.00 per outstanding common share, payable on January 9 to stockholders of record on December 31. Required a. Prepare journal entries to record the foregoing transactions. b. Prepare a statement of stockholders’ equity. Net income for the year is $426,250. Note: Use negative signs with your answers when appropriate (reduction to retained earnings, acquired treasury stock and treasury stock balances). Night Corporation Statement of Stockholders' Equity For Year Ended December 31 Paid-in-Capital Paid-in-Capital in Excess of Par Treasury Stock Common from Retained Treasury Stock Earnings Stock Total Balance, January 1 $ 360.000 v $ 600,000 v $ 37,500 v $ 435,000 v $ 36,000 x $ 1,260,000 15,000 v Common shares issued 90,000 v 300,000 v 390,000 v 6,000 v Treasury shares sold 37,500 v 172,500 v 210,000 v Stock Dividends Issued 0 x 0 x 0 x 2,500 v Treasury shares acquired (82,500) v (82,500) v Cash Dividends Declared 0 x 0 x Net Income 426,250 v 426.250 v Balance, December 31 $ 0 x $ 0 x $ 75,000 v $ 0 x $ 0 x $ 0 x
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Follow-up Questions
Read through expert solutions to related follow-up questions below.
Follow-up Question

Could you please explain how you get the 76,250 in the cash dividend formula? I was thinking it would still be the 75,000 outstanding shares (75,000 x $1.00)?

Cash Dividend (76,250 x $1.00)
Solution
Bartleby Expert
SEE SOLUTION
Knowledge Booster
Investment in Stocks
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS