DeZurik Corporation had the following stockholders’ equity section in its June 30, 2022, balance sheet (in thousands, except share and per share amounts): June 30 (in thousands)2022Paid-in capital: $4.0 Preferred stock, $ ? par value, cumulative, 60,000 shares authorized, 21,000 shares issued and outstanding$ 1,490Common stock, $6 par value, 4,000,000 shares authorized, 840,000 shares issued, 750,000 shares outstanding Additional paid-in capital on common stock5,320Retained earnings Less: Treasury common stock, at cost, ? shares Total stockholders' equity$ 15,410Required:Calculate the par value per share of preferred stock and determine the preferred stock dividend percentage.Calculate the amount that should be shown on the balance sheet for common stock at June 30, 2022.What was the average issue price of common stock shown on the June 30, 2022, balance sheet?How many shares of treasury stock does DeZurik Corporation own at June 30, 2022?Assume that the treasury shares were purchased for $17 per share. Calculate the amount that should be shown on the balance sheet for treasury stock at June 30, 2022.Calculate the retained earnings balance at June 30, 2022, after you have completed parts a to e. (Hint: Keep in mind that Treasury Stock is a contra account.)Assume that the Retained Earnings balance on July 1, 2021, was $5,173,142 (in thousands) and that net income for the year ended June 30, 2022, was $858 (in thousands). The 2022 preferred dividends were paid in full, and no other dividend transactions were recorded during the year. Verify that the amount shown in the solution to part f is correct. (Hint: Prepare a statement of retained earnings or do a T-account analysis to determine the June 30, 2022, balance.)

Shares:Shares can refer to the percentage of ownership in a company or in a financial asset of the…

Answered: Paid-in capital: $4.0 Preferred…

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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	June 30 (in thousands)2022
Paid-in capital:
$4.0 Preferred stock, $ ? par value, cumulative, 60,000 shares authorized, 21,000 shares issued and outstanding	$ 1,490
Common stock, $6 par value, 4,000,000 shares authorized, 840,000 shares issued, 750,000 shares outstanding
Additional paid-in capital on common stock	5,320
Retained earnings
Less: Treasury common stock, at cost, ? shares
Total stockholders' equity	$ 15,410

Required:

Calculate the par value per share of preferred stock and determine the preferred stock dividend percentage.
Calculate the amount that should be shown on the balance sheet for common stock at June 30, 2022.
What was the average issue price of common stock shown on the June 30, 2022, balance sheet?
How many shares of treasury stock does DeZurik Corporation own at June 30, 2022?
Assume that the treasury shares were purchased for $17 per share. Calculate the amount that should be shown on the balance sheet for treasury stock at June 30, 2022.
Calculate the retained earnings balance at June 30, 2022, after you have completed parts a to e. (Hint: Keep in mind that Treasury Stock is a contra account.)
Assume that the Retained Earnings balance on July 1, 2021, was $5,173,142 (in thousands) and that net income for the year ended June 30, 2022, was $858 (in thousands). The 2022 preferred dividends were paid in full, and no other dividend transactions were recorded during the year. Verify that the amount shown in the solution to part f is correct. (Hint: Prepare a statement of retained earnings or do a T-account analysis to determine the June 30, 2022, balance.)

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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