On January 1, 2022, Sheffield Corp. had the following stockholders' equity accounts.Common Stock ($12 par value, 81,300 shares issued and outstanding)Paid-in Capital in Excess of Par-Common StockRetained EarningsDuring the year, the following transactions occurred.Jan. 15Feb. 15Apr. 15May 15July 1Dec. 1Dec. 31$975,600188,000503,000Declared a $1 cash dividend per share to stockholders of record on January 31, payable February 15.Paid the dividend declared in January.Declared a 10% stock dividend to stockholders of record on April 30, distributable May 15. On April 15, the marketprice of the stock was $16 per share.Issued the shares for the stock dividend.Announced a 2-for-1 stock split. The market price per share prior to the announcement was $14. (The new par value is$6.)Declared a $0.70 per share cash dividend to stockholders of record on December 15, payable January 10, 2023.Determined that net income for the year was $220,000. Enter the beginning balances, and post the entries to the stockholders' equity accounts. (Note: Open additional stockholders'equity accounts as needed.) (Post entries in the order of journal entries presented in the previous question.)Common StockDateDateRetained EarningsPaid-in Capital in Excess of Par-Common StockExplanation Ref.DateCash DividendsDateStock DividendsDateExplanation Ref.BalanceDate✓Balance ✓Explanation Ref.Balance ✓CashdividendsStockdividendsNet incomeExplanation Ref.Explanation Ref.Common Stock Dividends DistributableExplanation Ref.DebitDebitDebitDebitDebitDebitCreditCreditCreditCreditCreditCreditBalancBalanceBalanceBalanceBalanceBalance

Stockholder's Equity -A financial statement that shows the issuance of common stock, paid-in capital…

Answered: On January 1, 2022, Sheffield Corp. had…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The stockholders’ equity section of Splish Inc. at the beginning of the current year appears below. Common stock, $10 par value, authorized 1,043,000 shares, 321,000 shares issued and outstanding $3,210,000 Paid-in capital in excess of par—common stock 562,000 Retained earnings 624,000 During the current year, the following transactions occurred. 1. The company issued to the stockholders 109,000 rights. Ten rights are needed to buy one share of stock at $30. The rights were void after 30 days. The market price of the stock at this time was $32 per share. 2. The company sold to the public a $204,000, 10% bond issue at 104. The company also issued with each $100 bond one detachable stock purchase warrant, which provided for the purchase of common stock at $28 per share. Shortly after issuance, similar bonds without warrants were selling at 96 and the warrants at $8. 3. All but 5,450 of the rights issued in (1) were exercised in 30 days. 4. At the end…
Item 1: On January 1, 2024, Entity L had 40,000 shares of $1 par value common stock issued and outstanding. During the year, the following transactions occurred: Mar. 1 Issued 33,000 shares of common stock at $11 per share. June 1 Declared a cash dividend of $1.80 per share to stockholders of record on June 15 June 30 Paid the $1.80 cash dividend Dec. 1 Purchased 1,200 shares of common stock for the treasury for $22 per share Instructions: Prepare journal entries to record the above transactions. Show your calculations
Balance at beginning of year Net income (les) Deductions: stock dividend (24,900 shares) common shares retired (110,eee shares) common stock cash dividends Balance at end of year A: December 31, 2023, common shares consisted of the following: common stock, 1,855,000 shares at $1 par Paid-in capital-excess of par NO 1 4 6 6 Required: Infer from the reports the events and transactions that affected Renn-Dever Corporation's retained earnings during 2024 2025 2026. Prepare the journal entries that reflect those events and transactions. (Hint: In lieu of revenues and expenses, use an ac titled "Income summary" to close net income or net loss.) Note: If no entry is required for a transaction/event, select "No Journal entry required" In the first account field. 7 B 9 4 Date 2025 2025 2026 RENN DEVER CORPORATION statements of Retained Earnings For the Years Ended December 31 2026 $6.794,297 3,308,700 242,000 889.950 $8.971.042 2026 2026 2026 Retained earnings Income summary Income summary…
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Alexander Corporation reports the following components of stockholders' equity at December 31, 2018. Common stock-$25 par value, 5e,eee shares authorized, 30,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 750,000 se, e00 348, 000 $1,140, 000 During 2019, the following transactions affected its stockholders' equity accounts Jan. Jan. 2 Purchased 3,000 shares of its own stock at $25 cash per share. 7 Directors declared a $1.5e per share cash dividend payable on February 28 to the February 9 stockholders of record. Feb. 28 Paid the dividend declared on January 7. July Aug. 27 Sold 1,500 of 1ts treasury shares at $20 cash per share. Sept. 9 Directors declared a $2 per share cash dividend payable on October 22 to the September 23 stockholders of 9 Sold 1,200 of its treasury shares at $30 cash per share. record. Oct. 22 Paid the dividend declared on September 9. Dec. 31 Closed the $52,00e credit balance…
1. Yellow Corporation had the following stockholders' equity accounts on December 31, 2020. Common Stock ($8 par value, 120,000 shares authorized, $ 320,000 40,000 shares issued and outstanding) Paid-in-Capital in Excess of Par - Common Stock $ 2,900,000 Retained Earnings $ 3,500,000 The following were transactions that occurred during 2021: 20-Feb Declared a $4 cash dividends per share on common stock 3-Mar Record date for cash dividends declared on 20 Feb 19-Mar Paid cash dividends 28-Apr Issued 15,000 shares of common stock for $16 per share 5-May Declared a $3 cash dividends per share on common stock 9-Jun Record date for cash dividends declared on 5 May 17-Jul Paid cash dividends 8-Aug Issued 23,500 shares of common stock for $20 per share 7-Sep Declared a $2 cash dividends per share on common stock 9-Oct Record date for cash dividends declared on 7 September 5-Nov Paid cash dividends 31-Dec Determined that net income for the year was $650,000 Instructions: 1. Journalize the…
The stockholders' equity section of Larkspur Inc. at the beginning of the current year appears below. Common stock, $10 par value, authorized 954,000 shares, 307,000 shares issued and outstanding Paid-in capital in excess of par-common stock Retained earnings During the current year, the following transactions occurred. 1. 2. 3. 4. 5. 6. (a) $3,070,000 553,000 614,000 The company issued to the stockholders 92,000 rights. Ten rights are needed to buy one share of stock at $35. The rights were void after 30 days. The market price of the stock at this time was $37 per share. The company sold to the public a $194,000, 10% bond issue at 103. The company also issued with each $100 bond one detachable stock purchase warrant, which provided for the purchase of common stock at $33 per share. Shortly after issuance, similar bonds without warrants were selling at 96 and the warrants at $7. All but 4,600 of the rights issued in (1) were exercised in 30 days. At the end of the year, 80% of the…
Ayayai Corporation had the following stockholders' equity accounts on January 1, 2022: Common Stock ($5 par) $500,000, Paid-in Capital in Excess of Par-Common Stock $200,000, and Retained Earnings $120,000. In 2022, the company had the following treasury stock transactions. Purchased 5,500 shares at $9 per share. Sold 1,000 shares at $13 per share. Sept. 1 Sold 1,000 shares at $11 per share. Dec. 1 Sold 1,500 shares at $7 per share. Mar. 1 June 1 Ayayai Corporation uses the cost method of accounting for treasury stock. In 2022, the company reported net income of $30,000. D (a) Journalize the treasury stock transactions, and prepare the closing entry at December 31, 2022, for net income. (List all debit entries before credit entries. Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit S
The shareholder's equity section of Chen Industries Limited at November 30, 2022 is shown below: Shareholders' Equity $1.50 cumulative preferred shares, 1,000 shares issued $ 50,000 Common shares, 10,000 shares issued Retained earnings $306,000 During 2023 the company completed the following transactions: 196,000 February 10 Declared a regular cash dividend on the preferred shares. March 10 Paid the cash dividend Declared a 10% stock dividend on April 14 the common shares. Market price per May 14 July 6 share REQUIRED: 60,000 1. November 20 Received equipment valued at $30,000 and issued 3,750 common shares. common share was $7/ share Distributed the stock dividend Issued 2,000 common shares for $5/ Journalize Chen's transactions. Explanations are not required. 2. Prepare the shareholder's equity section of Chen Industries Limited balance sheet at
The following accounts and their balances appear in the ledger of Goodale Properties Inc. on June 30 of the current year: 1 Common stock, $45 par $3,042,000.00 2 Paid-In Capital from Sale of Treasury Stock 115,400.00 3 Paid-In Capital in Excess of Par-Common Stock 270,400.00 4 Retained Earnings 20,585,800.00 5 Treasury Stock 321,900.00 Prepare the Stockholders’ Equity section of the balance sheet as of June 30 using Method 1 of Exhibit 8. Eighty thousand shares of common stock are authorized, and 8,700 shares have been reacquired. Refer to the lists of Accounts and Amount Descriptions provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtractive or negative numbers use a minus sign. Accounts and Amount Descriptions Common stock dividends Common stock, $45 par; 80,000 shares authorized, 67,600 issued Excess over par From sale of treasury…
On January 1, 2017, Ehrlich Corporation had the following stockholders’ equity accounts.Common Stock ($10 par value, 100,000 shares issued and outstanding) $1,000,000Paid-in Capital in Excess of Par—Common Stock 200,000Retained Earnings 540,000During the year, the following transactions occurred.Jan. 15 Declared a $1 cash dividend per share to stockholders of record on January 31, payable February 15.Feb. 15 Paid the dividend declared in January.Apr. 15 Declared a 15% stock dividend to stockholders of record on April 30, distributable May 15. On April 15, the market price of the stock was $15 per share.May 15 Issued the shares for the stock dividend.Dec. 1 Declared a $0.50 per share cash dividend to stockholders of record on December 15, payable January 10, 2018. 31 Determined that net income for the year was $250,000.Instructions(a) Journalize the…
On January 1, 2024, Dolar Incorporated had the following account balances in its shareholders' equity accounts. Common stock, $1 par, 241,000 shares issued $241,000 Paid-in capital-excess of par, common 482,000 Paid-in capital-excess of par, preferred. 195,000 Preferred stock, $100 par, 19,500 shares outstanding 1,950,000 Retained earnings Treasury stock, at cost, 4,100 shares 3,900,000 20,500 During 2024, Dolar Incorporated had several transactions relating to common stock. January 15: February 17: April 10: July 18: December 1: December 28: Required: Declared a property dividend of 100,000 shares of Burak Company (book value $11.9 per share, fair value $9.95 per share). Distributed the property dividend. A 2-for-1 stock split was declared and distributed on outstanding common stock and effected in the form of a stock dividend. (Dolar chose to reduce Paid-in capital-excess of par.) The fair value of the stock was $4 on this date.. Declared and distributed a 4% stock dividend on…

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