Q1 The following transactions show how the company responded to these questions during the fiscal year that ended on June 30, 2020. 1. The board of directors declared a 2-for-1 stock split. 2. The board of directors obtained authorization to issue 25,000 shares of $100 par value, 6 percent noncumulative preferred stock, callable at $104. 3. The company issued 6.000 shares of common stock for a building appraised at $48,000. 4. It bought back 4,000 shares of its common stock for $32.000. 5. It issued 10,000 shares of preferred stock for $100 per share. 6. It sold 2,500 shares of treasury stock for $17,500. 7. It declared cash dividends of S6 per share on preferred stock and $0.20 per share on common stock. 8. It declared a 10 percent stock dividend on common stock to be distributed after the end of the fiscal year. The market value was $10 per share. 9. It closed net income for the year, $170,000. Opening balances are given below: Contributed capital Common stock, no par value. $6 stated value. 500 000 shares authorized, 125 000 shares issued and outstanding $ 750,000 Additional paid-in capital 410.000 Total contributed capital 1.160,000 Retained earnings Total stockholders' equity 485.000 1.645.000 Required 1. Record the stockholders' equity components of the preceding transactions in T accounts. Indicate when there is no entry. 2. Prepare a statement of stockholders equity
Q1 The following transactions show how the company responded to these questions during the fiscal year that ended on June 30, 2020. 1. The board of directors declared a 2-for-1 stock split. 2. The board of directors obtained authorization to issue 25,000 shares of $100 par value, 6 percent noncumulative preferred stock, callable at $104. 3. The company issued 6.000 shares of common stock for a building appraised at $48,000. 4. It bought back 4,000 shares of its common stock for $32.000. 5. It issued 10,000 shares of preferred stock for $100 per share. 6. It sold 2,500 shares of treasury stock for $17,500. 7. It declared cash dividends of S6 per share on preferred stock and $0.20 per share on common stock. 8. It declared a 10 percent stock dividend on common stock to be distributed after the end of the fiscal year. The market value was $10 per share. 9. It closed net income for the year, $170,000. Opening balances are given below: Contributed capital Common stock, no par value. $6 stated value. 500 000 shares authorized, 125 000 shares issued and outstanding $ 750,000 Additional paid-in capital 410.000 Total contributed capital 1.160,000 Retained earnings Total stockholders' equity 485.000 1.645.000 Required 1. Record the stockholders' equity components of the preceding transactions in T accounts. Indicate when there is no entry. 2. Prepare a statement of stockholders equity
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Q1
The following transactions show how the company responded to these questions during the fiscal year that
ended on June 30, 2020.
1. The board of directors declared a 2-for-1 stock split.
2. The board of directors obtained authorization to issue 25,000 shares of $100 par value, 6 percent
noncumulative preferred stock, callable at $104.
3. The company issued 6,000 shares of common stock for a building appraised at $48,000.
4. It bought back 4,000 shares of its common stock for $32,000.
5. It issued 10,000 shares of preferred stock for $100 per share.
6. It sold 2,500 shares of treasury stock for $17,500.
7. It declared cash dividends of $6 per share on preferred stock and $0.20 per share on common stock.
8. It declared a 10 percent stock dividend on common stock to be distributed after the end of the fiscal
year. The market value was $10 per share.
9. It closed net income for the year, $170,000.
Opening balances are given below:
Contributed capital
Common stock, no par value, Só stated value, 500 000 shares authorized, 125 000 shares
issued and outstanding
$ 750,000
Additional paid-in capital
410.000
Total contributed capital
1,160,000
Retained earnings
Total stockholders' equity
485,000
1,645.000
Required
1. Record the stockholders' equity components of the preceding transactions in T accounts. Indicate
when there is no entry.
2. Prepare a statement of stockholders equity
Expert Solution
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 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.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