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Required information [The following information applies to the questions displayed below] Golf Apparel has two classes of stock authorized: 4%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2024, its first year of operations: January 2 Issue 120,000 shares of common stock for $68 per share. February 14 Issue 58,000 shares of preferred stock for $13 per share. May 8 May 31 Purchase 12,000 shares of its own common stock for $58 per share.. Resell 6,000 shares of treasury stock for $63 per share. December 1 Declare a cash dividend on its common stock of $0.35 per share and a $23,200 (4% of par value) cash dividend on its preferred stock payable to all stockholders of record on December 15. The dividend is payable on December 30. (Hint: Dividends are not paid on treasury stock.) December 30 Pay the cash dividends declared on December 1. 2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2024. Net income for the year was $488,000 (Amounts to be deducted should be indicated by a minus sign.)

Required information [The following information applies to the questions displayed below] Golf Apparel has two classes of stock authorized: 4%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2024, its first year of operations: January 2 Issue 120,000 shares of common stock for $68 per share. February 14 Issue 58,000 shares of preferred stock for $13 per share. May 8 May 31 Purchase 12,000 shares of its own common stock for $58 per share.. Resell 6,000 shares of treasury stock for $63 per share. December 1 Declare a cash dividend on its common stock of $0.35 per share and a $23,200 (4% of par value) cash dividend on its preferred stock payable to all stockholders of record on December 15. The dividend is payable on December 30. (Hint: Dividends are not paid on treasury stock.) December 30 Pay the cash dividends declared on December 1. 2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2024. Net income for the year was $488,000 (Amounts to be deducted should be indicated by a minus sign.)

FINANCIAL ACCOUNTING
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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# Golf Apparel Stockholders’ Equity Overview ## Required Information **Golf Apparel** has two classes of stock authorized: 4%, $10 par preferred, and $1 par value common. The following transactions affect stockholders’ equity during 2024, its first year of operations: - **January 2:** Issued 120,000 shares of common stock for $68 per share. - **February 14:** Issued 58,000 shares of preferred stock for $31 per share. - **May 8:** Purchased 12,000 shares of its own common stock for $58 per share. - **May 31:** Reissued 6,000 shares of treasury stock for $63 per share. - **December 2:** Declared a cash dividend on its common stock at $0.35 per share and a $23,200 (4% of par value) cash dividend on its preferred stock payable to all stockholders of record on December 15. The dividend is payable on December 30. (Hint: Dividends are not paid on treasury stock.) - **December 30:** Paid the cash dividends declared on December 1. ## Balance Sheet Information ### Golf Apparel Balance Sheet (Stockholders' Equity Section) **December 31, 2024** - **Stockholders' Equity:** - **Common Stock:** $120,000 - **Preferred Stock:** $0 - **Additional Paid-In Capital:** $0 - **Total Paid-in Capital:** $120,000 - **Retained Earnings:** $120,000 - **Treasury Stock:** $0 (This indicates any amounts deducted) - **Total Stockholders' Equity:** $120,000 **Note:** The net income for the year was $488,000. Amounts to be deducted should be indicated by a minus sign.
Transcribed Image Text:# Golf Apparel Stockholders’ Equity Overview ## Required Information **Golf Apparel** has two classes of stock authorized: 4%, $10 par preferred, and $1 par value common. The following transactions affect stockholders’ equity during 2024, its first year of operations: - **January 2:** Issued 120,000 shares of common stock for $68 per share. - **February 14:** Issued 58,000 shares of preferred stock for $31 per share. - **May 8:** Purchased 12,000 shares of its own common stock for $58 per share. - **May 31:** Reissued 6,000 shares of treasury stock for $63 per share. - **December 2:** Declared a cash dividend on its common stock at $0.35 per share and a $23,200 (4% of par value) cash dividend on its preferred stock payable to all stockholders of record on December 15. The dividend is payable on December 30. (Hint: Dividends are not paid on treasury stock.) - **December 30:** Paid the cash dividends declared on December 1. ## Balance Sheet Information ### Golf Apparel Balance Sheet (Stockholders' Equity Section) **December 31, 2024** - **Stockholders' Equity:** - **Common Stock:** $120,000 - **Preferred Stock:** $0 - **Additional Paid-In Capital:** $0 - **Total Paid-in Capital:** $120,000 - **Retained Earnings:** $120,000 - **Treasury Stock:** $0 (This indicates any amounts deducted) - **Total Stockholders' Equity:** $120,000 **Note:** The net income for the year was $488,000. Amounts to be deducted should be indicated by a minus sign.
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