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: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter11: Stockholders' Equity
Section: Chapter Questions
Problem 11.12MCP
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F064e33ce-eb3f-4a2d-a82e-9d38db35e62c%2Fbcff300c-ef81-41fe-b2ae-1620c19cf78d%2F2q7s03_processed.png&w=3840&q=75)
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
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![Financial Accounting: The Impact on Decision Make…](https://www.bartleby.com/isbn_cover_images/9781305654174/9781305654174_smallCoverImage.gif)
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
![Excel Applications for Accounting Principles](https://www.bartleby.com/isbn_cover_images/9781111581565/9781111581565_smallCoverImage.gif)
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
![Financial Accounting: The Impact on Decision Make…](https://www.bartleby.com/isbn_cover_images/9781305654174/9781305654174_smallCoverImage.gif)
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
![Excel Applications for Accounting Principles](https://www.bartleby.com/isbn_cover_images/9781111581565/9781111581565_smallCoverImage.gif)
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
![Cornerstones of Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337690881/9781337690881_smallCoverImage.gif)
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
![Financial & Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781285866307/9781285866307_smallCoverImage.gif)
Financial & Managerial Accounting
Accounting
ISBN:
9781285866307
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning