Martinez organized Manhattan Transport Company in January 1998. The corporationimmediately issued at $8 per share, one half of its 200,000 authorized sharesof $2 par value common stocks. On January 2 1999, the corporation sold at par value, the entire5,000 authorized shares of 8%, $100 par cumulative preferred stock.The company declared no dividend in 1998 & 1999. at the end of 1999, its retained earmings were$170,000. During 2000 and 2001 combined the company eamed a total of S 890,000. Dividendsof 50 cents per share in 2000 and $1.60 per share in 2001 were paid on the common stock.Q3.Prepare the stockholders' equity section of the balance sheet at December 31,2001, withsupporting schedule showing the distribution of dividends and computation of retained earnings.

Stockholders' Equity Section: It is one of the three elements of the balance sheet where Assets =…

Q3. Martinez organized Manhattan Transport Company in January 1998. The corporation immediately issued at $8 per share, one half of its 200,000 authorized shares of $2 par value common stocks. On January 2 1999, the corporation sold at par value, the entire 5,000 authorized shares of 8%, $100 par cumulative preferred stock. The company declared no dividend in 1998 & 1999. at the end of 1999, its retained eamings were $170,000. During 2000 and 2001 combined the company earmed a total of $ 890,000. Dividends of 50 cents per share in 2000 and S1.60 per share in 2001 were paid on the common stock. Prepare the stockholders' equity section of the balance sheet at December 31,2001, with supporting schedule showing the distribution of dividends and computation of retained earnings.

Q3. Martinez organized Manhattan Transport Company in January 1998. The corporation immediately issued at $8 per share, one half of its 200,000 authorized shares of $2 par value common stocks. On January 2 1999, the corporation sold at par value, the entire 5,000 authorized shares of 8%, $100 par cumulative preferred stock. The company declared no dividend in 1998 & 1999. at the end of 1999, its retained eamings were $170,000. During 2000 and 2001 combined the company earmed a total of $ 890,000. Dividends of 50 cents per share in 2000 and S1.60 per share in 2001 were paid on the common stock. Prepare the stockholders' equity section of the balance sheet at December 31,2001, with supporting schedule showing the distribution of dividends and computation of retained earnings.

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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