Problem 8-26 Treasury stock transactions and appropriation of retained earnings Choctaw Co. completed the following transactions in 2018, the first year of operation: 1. Issued 20,000 shares of $10 par common stock for $10 per share. 2. Issued 3,000 shares of $20 stated value preferred stock for $20 per share. 3. Purchased 1,000 shares of common stock as treasury stock for $12 per share. 4. Declared a $2,000 cash dividend on preferred stock. 5. Sold 500 shares of treasury stock for $14 per share. 6. Paid $2,000 cash for the preferred dividend declared in Event 4. 7. Earned cash revenues of $78,000 and incurred cash expenses of $41,000. 8. Appropriated $8,000 of retained earnings. Required Prepare the stockholders' equity section of the balance sheet as of December 31, 2018.
Problem 8-26 Treasury stock transactions and appropriation of retained earnings Choctaw Co. completed the following transactions in 2018, the first year of operation: 1. Issued 20,000 shares of $10 par common stock for $10 per share. 2. Issued 3,000 shares of $20 stated value preferred stock for $20 per share. 3. Purchased 1,000 shares of common stock as treasury stock for $12 per share. 4. Declared a $2,000 cash dividend on preferred stock. 5. Sold 500 shares of treasury stock for $14 per share. 6. Paid $2,000 cash for the preferred dividend declared in Event 4. 7. Earned cash revenues of $78,000 and incurred cash expenses of $41,000. 8. Appropriated $8,000 of retained earnings. Required Prepare the stockholders' equity section of the balance sheet as of December 31, 2018.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
.
Transcribed Image Text:Problem 8-26 Treasury stock transactions and appropriation of retained earnings
Choctaw Co. completed the following transactions in 2018, the first year of operation:
1. Issued 20,000 shares of $10 par common stock for $10 per share.
2. Issued 3,000 shares of $20 stated value preferred stock for $20 per share.
3. Purchased 1,000 shares of common stock as treasury stock for $12 per
share.
4. Declared a $2,000 cash dividend on preferred stock.
5. Sold 500 shares of treasury stock for $14 per share.
6. Paid $2,000 cash for the preferred dividend declared in Event 4.
7. Earned cash revenues of $78,000 and incurred cash expenses of $41,000.
8. Appropriated $8,000 of retained earnings.
Required
Prepare the stockholders' equity section of the balance sheet as of December 31,
2018.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education