Homework Help is Here – Start Your Trial Now!
Business
Accounting
On January 1, 2017, Svenberg Inc.'s Stockholders' Equity category appeared as follows: Preferred stock, $80 par value, 8 %, 1,000 shares issued and outstanding Common stock, $10 par value, 10,000 shares issued and outstanding Additional paid-in capital-Preferred Additional paid-in capital-Common Total contributed capital Retained earnings $80,000 Total stockholders' equity The preferred stock is noncumulative and nonparticipating. During 2017, the following transactions occurred: a. On March 1, declared a cash dividend of $6,400 on preferred stock. Paid the dividend on April 1. b. On June 1, declared an 8% stock dividend on common stock. The current market price of the common stock was $26. The stock was issued on July 1. c. On September 1, declared a cash dividend of $0.70 per share on the common stock; paid the dividend on October 1. d. On December 1, issued a 3-for-1 stock split of common stock, when the stock was selling for $30 per share. Required: 1. Explain each transaction's effect on the stockholders' equity accounts and the total stockholders' equity. Stockholders' equity 100,000 60,000 225,000 Transaction On March 1, declared a cash dividend of $6,400 on preferred stock Paid the dividend on April 1 On June 1, declared an 8% stock dividend on common stock. The current market price of the common stock was $26 The stock was issued on July 1 On September 1, declared a cash dividend of $0.70 per share on the common stock Paid the dividend on October 1 On December 1, issued a 3-for-1 stock split of common stock, when the stock was selling for $30 per share Total contributed capital $465,000 1,980,000 $2,445,000 Total stockholders' equity 2. Develop the Stockholders' Equity category of the balance sheet. Assume that the net income for the year was $720,000. Do not round interim par value calculations. Svenberg Inc. Partial Balance Sheet December 31, 2017 Effect on total stockholders' equity

On January 1, 2017, Svenberg Inc.'s Stockholders' Equity category appeared as follows: Preferred stock, $80 par value, 8 %, 1,000 shares issued and outstanding Common stock, $10 par value, 10,000 shares issued and outstanding Additional paid-in capital-Preferred Additional paid-in capital-Common Total contributed capital Retained earnings $80,000 Total stockholders' equity The preferred stock is noncumulative and nonparticipating. During 2017, the following transactions occurred: a. On March 1, declared a cash dividend of $6,400 on preferred stock. Paid the dividend on April 1. b. On June 1, declared an 8% stock dividend on common stock. The current market price of the common stock was $26. The stock was issued on July 1. c. On September 1, declared a cash dividend of $0.70 per share on the common stock; paid the dividend on October 1. d. On December 1, issued a 3-for-1 stock split of common stock, when the stock was selling for $30 per share. Required: 1. Explain each transaction's effect on the stockholders' equity accounts and the total stockholders' equity. Stockholders' equity 100,000 60,000 225,000 Transaction On March 1, declared a cash dividend of $6,400 on preferred stock Paid the dividend on April 1 On June 1, declared an 8% stock dividend on common stock. The current market price of the common stock was $26 The stock was issued on July 1 On September 1, declared a cash dividend of $0.70 per share on the common stock Paid the dividend on October 1 On December 1, issued a 3-for-1 stock split of common stock, when the stock was selling for $30 per share Total contributed capital $465,000 1,980,000 $2,445,000 Total stockholders' equity 2. Develop the Stockholders' Equity category of the balance sheet. Assume that the net income for the year was $720,000. Do not round interim par value calculations. Svenberg Inc. Partial Balance Sheet December 31, 2017 Effect on total stockholders' equity

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

Can you help me fill this out?

On January 1, 2017, Svenberg Inc.'s Stockholders' Equity category appeared as follows: Preferred stock, $80 par value, 8 %, 1,000 shares issued and outstanding Common stock, $10 par value, 10,000 shares issued and outstanding Additional paid-in capital-Preferred Additional paid-in capital-Common Total contributed capital Retained earnings $80,000 Total stockholders' equity The preferred stock is noncumulative and nonparticipating. During 2017, the following transactions occurred: a. On March 1, declared a cash dividend of $6,400 on preferred stock. Paid the dividend on April 1. b. On June 1, declared an 8% stock dividend on common stock. The current market price of the common stock was $26. The stock was issued on July 1. c. On September 1, declared a cash dividend of $0.70 per share on the common stock; paid the dividend on October 1. d. On December 1, issued a 3-for-1 stock split of common stock, when the stock was selling for $30 per share. Required: 1. Explain each transaction's effect on the stockholders' equity accounts and the total stockholders' equity. 100,000 60,000 225,000 Transaction On March 1, declared a cash dividend of $6,400 on preferred stock Paid the dividend on April 1 $465,000 1,980,000 $2,445,000 On June 1, declared an 8% stock dividend on common stock. The current market price of the common stock was $26 The stock was issued on July 1 Stockholders' equity On September 1, declared a cash dividend of $0.70 per share on the common stock Paid the dividend on October 1 On December 1, issued a 3-for-1 stock split of common stock, when the stock was selling for $30 per share Total contributed capital Total stockholders' equity 2. Develop the Stockholders' Equity category of the balance sheet. Assume that the net income for the year was $720,000. Do not round interim par value calculations. Svenberg Inc. Partial Balance Sheet December 31, 2017 Effect on total stockholders' equity
Transcribed Image Text:On January 1, 2017, Svenberg Inc.'s Stockholders' Equity category appeared as follows: Preferred stock, $80 par value, 8 %, 1,000 shares issued and outstanding Common stock, $10 par value, 10,000 shares issued and outstanding Additional paid-in capital-Preferred Additional paid-in capital-Common Total contributed capital Retained earnings $80,000 Total stockholders' equity The preferred stock is noncumulative and nonparticipating. During 2017, the following transactions occurred: a. On March 1, declared a cash dividend of $6,400 on preferred stock. Paid the dividend on April 1. b. On June 1, declared an 8% stock dividend on common stock. The current market price of the common stock was $26. The stock was issued on July 1. c. On September 1, declared a cash dividend of $0.70 per share on the common stock; paid the dividend on October 1. d. On December 1, issued a 3-for-1 stock split of common stock, when the stock was selling for $30 per share. Required: 1. Explain each transaction's effect on the stockholders' equity accounts and the total stockholders' equity. 100,000 60,000 225,000 Transaction On March 1, declared a cash dividend of $6,400 on preferred stock Paid the dividend on April 1 $465,000 1,980,000 $2,445,000 On June 1, declared an 8% stock dividend on common stock. The current market price of the common stock was $26 The stock was issued on July 1 Stockholders' equity On September 1, declared a cash dividend of $0.70 per share on the common stock Paid the dividend on October 1 On December 1, issued a 3-for-1 stock split of common stock, when the stock was selling for $30 per share Total contributed capital Total stockholders' equity 2. Develop the Stockholders' Equity category of the balance sheet. Assume that the net income for the year was $720,000. Do not round interim par value calculations. Svenberg Inc. Partial Balance Sheet December 31, 2017 Effect on total stockholders' equity
Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
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