Stockholders' Equity Section of Balance SheetThe following Stockholders' Equity section of the balance sheet prepared as of the end of the current year:Stockholders' EquityPaid-in capital:Preferred 2% stock, $60 par (94,000 shares authorized and issued)$5,640,000Excess of issue price over par375,000 $6,015,000Retained earnings72,525,000Treasury stock (56,000 shares at cost)868,000Dividends payable323,000Total paid-in capital$79,731,000Common stock, $10 par (750,000 shares authorized, 619,000 shares issued)6,623,000Organizing costs225,000Total stockholders' equity$86,579,000Prepare a corrected Stockholders' Equity section. Use the minus sign to indicate any values that are deducted on the statement. Stockholders' EquityPaid-In Capital:Preferred 2% stock, $60 par (94,000 shares authorized and issued)Excess Over ParPaid-in Capital, Preferred StockCommon stock, $10 par (750,000 shares authorized, 619,000 shares issued)Excess Over ParPaid-in Capital, Common StockTotal paid-in capitalRetained EarningsTreasury stock (56,000 shares at cost)Total stockholders' equity%24

The stockholder equity statement as,

Answered: r (94,000 shares authorized and issued…

Business

Accounting

r (94,000 shares authorized and issued ar

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: The following are the items contained in the company's capital section of PT. Copyright as of March…

A: Dividend for 2000, 10% priority share = 4,000,000 x 10% = 400,000 Dividend for common stock…

Q: Below is a partial list of account titles and balances for the TNT Corporation as of December 31,…

A: Since you have posted a question with multiple sub-parts, we will do the first three sub-parts for…

Q: 19. A company acquires 1,000 shares of its own $1 par common stock for $15 per share. This purchase…

A: The correct answer is: (D) Debit to treasury stock for $15,000 The treasury stock account is a…

Q: The following information was lifted from the shareholders' equity section of Neeoma Corporation's…

A: Cash dividend payable represents the amount of dividends that a company owes to its shareholders but…

Q: Current liabilities Convertible bonds ($1,000 par, 7%) Common stock ($1 par, 100,000 shares issued)…

A: Earnings per Share (EPS) is a financial metric that represents the portion of a company's profit…

Q: The equity section from the December 31, 2020 balance sheet of Kentucky Corporation appeared as…

A: The dividend is payable to shareholders only for the shares which are outstanding. Treasury stock…

Q: A. The following selected transactions pertain to L. Lewis Corporation: Jan. 3 Issued 100,000…

A: Stocks of a company can be issued in exchange of cash or in kind. Stocks issued in exchange of cash…

Q: Vicland Ltd has two classes of shares: ordinary and preference. Requirement Journalise Vicland's…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: Newly formed S&J Iron Corporation has 125,000 shares of $5 par common stock authorized. On March 1,…

A: Net profit means the difference between the income and expenses. Financial statement means the…

Q: What information should be included in the journal entry for the conversion?

A: A bond is a fixed-rate instrument issued to represent an advance made by a financial specialist to a…

Q: At 1 Jul 20X4 a company’s capital and share premium account of a company were as follows: Ordinary…

A: Company means the form of business where management is separately from owner and have perpetual…

Q: Manapat Products Inc. was formed at the beginning of the year. Ordinary share has a P 25 par value.…

A: The question is related to Provide the explaination for the Journal Entries.

Q: On February 16, Hawthorne Company declares a $0.35 dividend to be paid on April 5. Hawthorne has…

A: Journal entry is the act of keeping records of transactions in an accounting journal. An accounting…

Q: On January 1, 20X1, Popular Creek Corporation organized SunTime Company as a subsidiary in…

A: Step 1: Understanding the Translation AdjustmentThe translation adjustment arises from the need to…

Q: Thirty $1,000 bonds with a carrying value of $39,600 are converted into 4,000 shares of $5 par value…

A: Bonds are the source of funds raised by the company from outsiders. It contains a fixed percentage…

Q: XYZ Company purchased 5,000 of its own shares at $50 per share. DATE Debit…

A: Accounting entry for purchase of own shares Equity A/c Debit Cash / Bank A/c Credit

Q: Capital stock, $1 par value, 500,000 shares authorized, 382,000 issued and outstanding ....…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: View Policies Current Attempt in Progress Kingbird Corporation is authorized to issue 53,000 shares…

A: Journal entry is the first step in the recording of any transaction. a journal entry is made based…

Q: Common shares, unlimited shares authorized; 4,400,000 shares issued and outstanding Retained…

A: Stock dividend: When the company issues additional shares to the existing shareholders in lieu of a…

Q: Mall Company issued 60.000, P50 par value, ordinary shares and 20.000, P100 par value, preference…

A: Solution: Fair market value of ordinary shares = 60000*P100 = P6,000,000 Fair market value preferred…

Q: Normal Company issues 6,000 shares of its $5 par value common stock having a fair value of $25 per…

A: Common stock means the amount of money invested by the common shareholders in the business entity.…

Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

Stockholders' Equity Section of Balance Sheet
The following Stockholders' Equity section of the balance sheet prepared as of the end of the current year:
Stockholders' Equity
Paid-in capital:
Preferred 2% stock, $60 par (94,000 shares authorized and issued)
$5,640,000
Excess of issue price over par
375,000 $6,015,000
Retained earnings
72,525,000
Treasury stock (56,000 shares at cost)
868,000
Dividends payable
323,000
Total paid-in capital
$79,731,000
Common stock, $10 par (750,000 shares authorized, 619,000 shares issued)
6,623,000
Organizing costs
225,000
Total stockholders' equity
$86,579,000
Prepare a corrected Stockholders' Equity section. Use the minus sign to indicate any values that are deducted on the statement.

Stockholders' Equity
Paid-In Capital:
Preferred 2% stock, $60 par (94,000 shares authorized and issued)
Excess Over Par
Paid-in Capital, Preferred Stock
Common stock, $10 par (750,000 shares authorized, 619,000 shares issued)
Excess Over Par
Paid-in Capital, Common Stock
Total paid-in capital
Retained Earnings
Treasury stock (56,000 shares at cost)
Total stockholders' equity
%24

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!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

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

The following are the items contained in the company's capital section of PT. Copyright as of March 31 Ordinary shares, nominal @ Rp1,000, - statutair 40,000 shares paid up 24,000 shares IDR 12,000,000 10% priority shares, nominal @ IDR 2,000 IDR 4,000,000 Common stock Agio Retained earning IDR 1,200,000,- IDR 6,800,000 On April 1, the board of directors of the company announced that they would pay dividends of Rp Rp1,840,000, -. From this data, calculate the distribution of dividends to each shareholder if Priority shares above are non-cumulative priority shares and full participation
Checl Common stock, $1 par; authorized, 8 mil1lion shares; issued and outstanding, 3 million shares Paid-in capital-excess of par Retained earnings $ 3,000,000 12,000,000 14,000,000 On April 1, 2021, the board of directors of Core Technologiles declared a 10% stock dividend on common shares, to be distributed on June 1. The market price of Core Technologies'.common stock was $30 on April1, 2021, and $40 on June 1, 2021. Required: Complete the below table to calculate the stock dividend. Prepare the journal entries to record the declaration and distribution of the stock dividend. Complete this question by entering your answers in the tabs below. General, Journal Stock Dividend Complete the below table to calculate the stock dividend. Stock Dividend Number of outstanding shares Stock dividend percentage (%) Number of shares to be issued S. Value of stock dividend General Journal Question no...pages Question no...pages %24
Contributed capital: Western Grass, Inc. Equity Section of Balance Sheet December 31, 2823 Preferred shares, $3 cumulative, 10,000 shares authorized, issued and outstanding Common shares, 100,000 shares authorized; 65,000 shares issued and outstanding Total contributed capital Retained earnings Total equity 75,000 552,500 627 500 581 000 $1,208,500 Required: Using the Information provided, calculate book value per common share assuming: (Round the final answers to 2 decimal places.) a. There are no dividends in arrears. b. There are three years of dividends in arrears. Book Value of Common Shares
If Dakota Company issues 1,500 shares of $6 par common stock for $75,000, O Common Stock will be credited for $75,000 O Paid-In Capital in Excess of Par will be credited for $9,000 Paid-In Capital in Excess of Par will be credited for $66,000 O Cash will be debited for S66,000
XYZ Company sold 500 shares of treasury stock (from (c)) at $45 per share. DATE Debit Credit X/X
i.3
PLease answer only B3, B4, B5
A Company issued $5,00,000/- new capital divided into $.10/- shares at a premium of $4/- per share payable as On Application $1/- per share On Allotment $4/- per share & $.2/- premium On Final Payment $.5/- per share & $.2/- premium Overpayments on application were to be applied towards sum due on allotment. Where no allotment was made money was to be returned in full. The issue was oversubscribed to the extent of 13,000 shares. Applicants for 12,000 shares were allotted only 1,000 shares and applicants for 2,000 were sent letters of regret. All money due on allotment and final call was duly received. Make the necessary entries in the company‟s book.
IUuwvie t0 Accountancy Company is: a. P393,000 b. P376,500 c. P390,000 d. P406,500 11. YSL Corporation acquired 80% of the outstanding ordinary shares of GBX Company on June 1, 2022 for P586,250. GBX Company's shareholder's equity components at the end of this year were as follows: Ordinary shares, P100 par, P250,000; Share premium, P112,500 and Retained earnings, P222,5000. NCI is measured at fair value. All the assets of GBX were fairly valued, except for inventories, which is overstated by P11,000 and equipment, which is understated by P15,000. Remaining useful life of equipment is 4 years. Both companies use straight line method for depreciation and amortization. Shareholder's equity of YSL on January 1, 2022 is composed of Ordinary shares, P750,000; Share premium, P175,000 and Retained earnings, P525,000. Fair value of NCI on the date of acquisition is P117,500. Goodwill, if any, should be written down by P14,225 at year end. Net income for the first year of parent and subsidiary…
sh.3
PLease answer only B6 and B7
Question Content Area The charter of a corporation provides for the issuance of 101,000 shares of common stock. Assume that 56,000 shares were originally issued and 7,000 were subsequently reacquired. What is the number of shares outstanding? a. 56,000 b. 63,000 c. 7,000 d. 49,000