On January 1, 2024, Dolar Incorporated had the following account balances in its shareholders' equity accounts. Common stock, $1 par, 252,000 shares issued Paid-in capital-excess of par, common Paid-in capital-excess of par, preferred. Preferred stock, $100 par, 11,000 shares outstanding Retained earnings Treasury stock, at cost, 5,200 shares During 2024, Dolar Incorporated had several transactions relating to common stock. January 15: February 17: April 10: July 18: December 1: December 20: $ 252,000 504,000 110,000 1,100,000 2,200,000 26,000 Declared a property dividend of 100,000 shares of Burak Company (book value $10.2 per share, fair value $9.10 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 3% stock dividend on outstanding common stock. The fair value is $5 per share. Declared a 50 cents per share cash dividend on the outstanding common shares. Paid the cash dividend. Required: Without preparing journal entries, prepare the shareholders' equity section of Dolar's balance sheet as of December 31, 2024. Assume net income is $520,000 for 2024.
On January 1, 2024, Dolar Incorporated had the following account balances in its shareholders' equity accounts. Common stock, $1 par, 252,000 shares issued Paid-in capital-excess of par, common Paid-in capital-excess of par, preferred. Preferred stock, $100 par, 11,000 shares outstanding Retained earnings Treasury stock, at cost, 5,200 shares During 2024, Dolar Incorporated had several transactions relating to common stock. January 15: February 17: April 10: July 18: December 1: December 20: $ 252,000 504,000 110,000 1,100,000 2,200,000 26,000 Declared a property dividend of 100,000 shares of Burak Company (book value $10.2 per share, fair value $9.10 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 3% stock dividend on outstanding common stock. The fair value is $5 per share. Declared a 50 cents per share cash dividend on the outstanding common shares. Paid the cash dividend. Required: Without preparing journal entries, prepare the shareholders' equity section of Dolar's balance sheet as of December 31, 2024. Assume net income is $520,000 for 2024.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On January 1, 2024, Dolar Incorporated had the following account balances in its shareholders' equity accounts.
Common stock, $1 par, 252,000 shares issued
Paid-in capital-excess of par, common
$ 252,000
504,000
110,000
Paid-in capital-excess of par, preferred
Preferred stock, $100 par, 11,000 shares outstanding
1,100,000
Retained earnings
Treasury stock, at cost, 5,200 shares
2,200,000
26,000
During 2024, Dolar Incorporated had several transactions relating to common stock.
January 15:
February 17:
April 10:
July 18:
December 1:
December 20:
Declared a property dividend of 100,000 shares of Burak Company (book value $10.2 per share, fair
value $9.10 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 3% stock dividend on outstanding common stock. The fair value is $5 per
share.
Declared a 50 cents per share cash dividend on the outstanding common shares.
Paid the cash dividend.
Required:
Without preparing journal entries, prepare the shareholders' equity section of Dolar's balance sheet as of December 31, 2024. Assume
net income is $520,000 for 2024.
Note: Negative amounts should be entered with a minus sign.
Answer is complete but not entirely correct.
Dolar Incorporated
Balance Sheet (Partial)
December 31, 2024
Shareholders' equity
Preferred stock
Common stock
Paid-in capital - excess of par, preferred
Paid-in capital - excess of par, common
Retained earnings
Treasury stock
Total shareholders' equity
333333
$ 1,100,000
513,608
110,000
513,508 x
715,346
(26,000)✔
$ 2,926,462
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