Question:How many preference shares were issued and outstanding?How many ordinary shares were issued and outstanding? Stockholder's EquityShare CapitalPaid-In Capital8% Preference Shares - $200 par, 10,000 sahres authorized,Jissued andOrdinary Shares - $50 par, 30,000 shares authorized andissued andoutstanding1,600,000Joutstanding1,250,000Subscribed preference shares, 1,000 shares200,0001,470,000Additional Paid-In CapitalShare Premium, 8% Preference Shares240,000Share Premium, Ordinary Shares345,000Total Paid-In Capital3,415,000Less: Treasury Stock - 8% Preferred Shares, 1,000 shares, at cost242,000Total Share CapitalRetained Earnings880,000Total Stockholder's Equity4,075,000

Shareholder's Equity:-It is the capital invested by the investors in the company. It is the balance…

Answered: Question: How many preference shares…

Business

Accounting

Question: How many preference shares were issued and outstanding? How many ordinary shares were issued and outstanding?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Where in the financial statements is preferred stock normallyreported?

A: Preferred stock:

Q: Convertible preferred stock is normally converted into a. shares of common stock b. warrants c.…

A: Conversion of convertible preferred stock / convertible bonds is usually at option of holder of…

Q: The par value of shares historically indicated the real value of shares and all shares were issued…

A: Common stock: Common stock is the instrument used by the company for raising funds from the general…

Q: Define Issuance of New Shares.

A: Common stock: These are the ordinary shares that a corporation issues to the investors in order to…

Q: What is the difference between common stock, preferred stock, and treasury stock?

A: The company can raise money from the investors by issuing the common stock or preference stock.…

Q: Which of the following is ordered from the largest numberof shares to the smallest number of…

Q: In accounting for mutual ownerships, what is the treasury stock approach?

Q: Identify the example/s of equity shares from the following. a. Equity shares and partnership shares…

A: Equity shares the Example of equity shares in the company... Option D equity shares is correct...…

Q: When shares are subscribed, which of the following statements is/are correct? O A. A Shareholders'…

A: Subscription of shares means a promise by the investors to buy the new shares issued by the company…

Q: Identify whether stockholders’ equity would increase (I), decrease (D), or have no effect (NE) as a…

A: Treasury Stock Treasury stock are basically those stocks which are bought back from the investors…

Q: How many shares of common stock are outstanding? How many shares of preferred stock are outstanding?

A: As per the BNED requirements, each question is answered to the maximum of the first 3 sub parts…

Q: Which of the following disclosures regarding stock is not required to be reported on the balance…

A: Financial statements are set up accounts that pass on the business exercises and the monetary…

Q: Use the Telex Information to complete the following questions: Preferred Stock Number of Shares…

A: Preferred stock and common stock are two source of finance used by entity, under common stock entity…

Q: Describe how cumulative preferred stock differs from noncumulative preferred stock. How is a…

A: Cumulative preferred stock is a type of preferred stock with a provision that stipulates that if any…

Q: If there are no treasury shares, then issued shares and outstanding shares are the same number.…

A: The issued shares are the shares that are allotted to the shareholders. The treasury shares are the…

Q: Why do companies reacquire their own shares of stock?

A: Ans. For many reasons companies reacquire their own shares of stock. Some of them are discussed…

Q: All of the following are stockholders' equity accounts except Question 28 options: Treasury…

A: Stockholders’ equity: The claims of owners on a company’s resources, after the liabilities are paid…

Q: Which of the following does not have the right to dividends? outstanding shares treasury shares…

A: All the outstanding shares are entitled to dividends. The shares that have been issued but are not…

Q: What are the rights of preferred shares?

A: Two kinds of shares may be issued. 1 ) Preference shares 2 ) Equity shares.

Q: How do you record retirement of treasury shares?

A: There are two methods for retiring treasury stock (1) cost method : in this method the following…

Q: Outstanding ordinary shares are: Select one: a. Shares that are performing well on the stock…

A: Stockholders’ equity: Stockholders’ equity is main portion of the balance sheet. It represents the…

Q: Explain the accounting for issuance of par value shares and no-par value shares.

A: The base cost at which a class of shares or stocks can be exchanged on the underlying contribution…

Q: Explain the significance of CALLS to the business that issued shares?

A: Shares are the units of the total stock of a company which shows the fractional ownership of the…

Q: Differentiate the effect on EPS of the sale of new shares, a stock dividend or stock split, and the…

A: Earning per share is computed by dividing the earnings available to the common/equity stock holders…

Q: Explain each of the following terms: authorized ordinary shares, unissued ordinary shares, issued…

A: Authorized ordinary shares refer to the total maximum number of shares that are legally allowed to…

Q: Should preference shares be disclosed as equity or as debt?

A: Stocks: Stocks are shares in ownership in other companies. It represents the capital raised by a…

Q: Whats the difference btween authorized stock, issued stock, and outstanding stock?

A: Stock: Stock represents the number of shares owned by the investors (individual or group) in a…

Q: What is a reverse stock split? What would be the effect of a reverse stock split on one million $1…

Q: Do preferred stockholders receive the share of the company earnings before or after bond interest is…

A: Preference Stockholders are entitled to receive fixed amount of dividend from the company and enjoys…

Q: What is the difference between the fully paid shares and the partially paid shares?

A: Equity: It is the amount shareholder invested in the company. This is the difference between total…

Q: What is treasury stock? What type of account is Treasury Stock, and what is the account’s normal…

A: Stock: It refers to a security issued in a form of certificate. It implies the right of ownership of…

Q: please step by step answer.

A: When a shareholder fails to pay the amount due on shares, the company may decide to forfeit the…

Q: Which of the following formulas is correct regarding the different status of shares of stock:…

A: Authorized shares refer to the total number of shares that a company is eligible to issue, and it is…

Q: Which of the following formulas is correct regarding the different status of shares of stock:…

A: Authorised shares are maximum number of shares that a company can issue as per permissions in…

Q: Some companies issue shares at a premiumand others at discount. What are the factors influencing the…

A: Shares- A share is a piece of property that can be freely transferred unless the law or a contract…

Q: What is the general ledger account used in recognizing watered shares?

A: Answer:- Watered shares meaning:- Shares of a corporation that were issued at a price far higher…

Question

Question:

How many preference shares were issued and outstanding?
How many ordinary shares were issued and outstanding?

Stockholder's Equity
Share Capital
Paid-In Capital
8% Preference Shares - $200 par, 10,000 sahres authorized,
Jissued and
Ordinary Shares - $50 par, 30,000 shares authorized and
issued and
outstanding
1,600,000
Joutstanding
1,250,000
Subscribed preference shares, 1,000 shares
200,000
1,470,000
Additional Paid-In Capital
Share Premium, 8% Preference Shares
240,000
Share Premium, Ordinary Shares
345,000
Total Paid-In Capital
3,415,000
Less: Treasury Stock - 8% Preferred Shares, 1,000 shares, at cost
242,000
Total Share Capital
Retained Earnings
880,000
Total Stockholder's Equity
4,075,000

Definition Definition Type of stock which is granted priority over dividend distributions as compared to common stockholders. Preferred stocks also do not carry any voting rights. Notably, in a case where a company is going to be liquidated, preferred stockholders have a priority claim on the value of assets of the company as quoted in the balance sheet, as compared to the common stockholders.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

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.

Similar questions

TRUE OR FALSE Outstanding shares are the number of shares sold or conveyed to owners.
ESPAÑOL INGLÉS FRANCÉS As of the date of the financial statements, the number of common shares issued will exceed the number of shares outstanding as a result of to. the declaration of a stock dividend. b. the declaration of a division or division of shares (stock split). С. the purchase of shares in portfolio (treasury stock). Enviar comenta. MacBook Air
The shares of stock sold to investors are Select one: a. Treasury shares. b. Authorized shares. c. Issued shares. d. Outstanding shares. A firm that sold one share of $1 par value common stock for $10 would Select one: a. Debit common stock for $1. b. Debit common stock for $10. c. Credit common stock for $1. d. Credit common stock for $10. For a bond issued at par, the cash received upon issue equals the present value of the bond’s Select one: a. Principal repayment minus the interest payments. b. Principal repayment and interest payments. c. Principal repayment. d. Interest payments.
Record the issuance of shares when sold for cash and for noncash consideration
2. What does it mean when shares of stock are outstanding?
Treasury stock shares are shares of stock that are: Select one: a. Authorized and issued, but not outstanding. b. Authorized but not issued. c. Authorized and issued, and outstanding. d. Authorized and outstanding.
Distinguish between accounting for retired shares and for treasury shares.
A stock split applies to all common shares including the?
Which of the following can not be used for redemption of preference shares? A. Insurance Fund B. Workmen's Compensation Fund C. General Reserve D. Profit Prior to Incorporation