Required Information[The following information applies to the questions displayed below.]Bacon Inc. has the following stockholders' equity section in its May 31, 2019, comparative balance sheets:May 31, 2019Paid-in capital:Preferred stock, $120 par value, 5%, cumulative, 100,000 shares authorized,74,000 shares issued and outstandingCommon stock, $6 par value, 600,000 shares authorized, 420,000 and 480,000shares issued, respectivelyAdditional paid-in capitalRetained earningsLess: Treasury common stock, at cost; 21,000 shares and 19,500 shares,respectivelyTotal stockholders' equityView transaction listJournal entry worksheet1Record the declaration of 4% stock dividend.Note: Enter debits before credits.Transaction1Record entry1-2. Assume that on June 1 the market value of the common stock was $42 per share and that the board of directors declared a 4%stock dividend on the issued shares of common stock. Prepare journal entry to show the issuance of the stock dividend. (If no entry isrequired for a transaction/event, select "No journal entry required" In the first account fleld.)General JournalClear entryDebitCreditView general journal$ 8,880,000>?14,670,00012,070,000(1,932,000)$?April 30, 2019$8,880,0002,400,00014,140,00011,794,000(1,872,000)$35,342,000 [The following information applies to the questions displayed below.]Bacon Inc. has the following stockholders' equity section in its May 31, 2019, comparative balance sheets:May 31, 2019Paid-in capital:Preferred stock, $120 par value, 5%, cumulative, 100,000 shares authorized,74,000 shares issued and outstandingCommon stock, $6 par value, 600,000 shares authorized, 420,000 and 400,000shares issued, respectivelyAdditional paid-in capitalRetained earningsLess: Treasury common stock, at cost; 21,000 shares and 19,500 shares,respectivelyTotal stockholders' equityAssetsBalance SheetLiabilities$8,880,000++++?14,670,00012,070,000(1,932,000)$1. Assume that on June 1 the market value of the common stock was $42 per share and that the board of directors declared a 4%tock dividend on the issued shares of common stock. Use the horizontal model to show the issuance of the stock dividend. Indicatee financial statement effect. (Enter decreases with a minus sign to Indicate a negative financial statement effect.)April 30, 2019Stockholders' Equity$8,880,0002,400,00014,140,00011,794,000(1,872,000)$35,342,0002-Net Income|==Income StatementRevenues|-|Expenses

The stock dividend is issued on shares issued and outstanding. As per question, it is specified that…

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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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Sandhill Company reported the following amounts in the stockholders’ equity section of its December 31, 2019, balance sheet. Preferred stock, 10%, $ 100 par (10,000 shares authorized, 2,100 shares issued) $ 210,000 Common stock, $ 5 par ( 92,500 shares authorized, 18,500 shares issued) 92,500 Additional paid-in capital 132,000 Retained earnings 434,000 Total $ 868,500 During 2020, Sandhill took part in the following transactions concerning stockholders’ equity. 1. Paid the annual 2019 $ 10 per share dividend on preferred stock and a $ 2 per share dividend on common stock. These dividends had been declared on December 31, 2019. 2. Purchased 1,800 shares of its own outstanding common stock for $ 40 per share. Sandhill uses the cost method. 3. Reissued 600 treasury shares for land valued at $ 30,200. 4. Issued 530 shares of preferred stock at $ 106 per share. 5. Declared a 10% stock dividend on the outstanding common stock when the…
Required Information [The following information applies to the questions displayed below.] On January 1, 2019, Metco Inc. reported 273,000 shares of $2 par value common stock as being issued and outstanding. On March 24, 2019, Metco Inc. purchased for its treasury 3,900 shares of its common stock at a price of $36.00 per share. On August 19, 2019, 850 of these treasury shares were sold for $42.50 per share. Metco's directors declared cash dividends of $0.80 per share during the second quarter and again during the fourth quarter, payable on June 30, 2019. and December 31, 2019, respectively. A 2% stock dividend was issued at the end of the year. There were no other transactions affecting common stock during the year. Required: a-1. Use the horizontal model for the treasury stock purchase on March 24, 2019. Indicate the financial statement effect. (Enter decreases with a minus sign to Indicate a negative financial statement effect.) Assets Balance Sheet Liabilities + Stockholders' Equity…
Required information [The following information applies to the questions displayed below] Bacon Inc. has the following stockholders' equity section in its May 31, 2019, comparative balance sheets: Paid-in capital: Preferred stock, $120 par value, 9%, cumulative, 200,000 shares authorized, 140,000 shares issued and outstanding Common stock, $5 par value, 1,000,000 shares authorized, 600,000 and 540,000 shares issued, respectively. Additional paid-in capital. Retained earnings Less: Treasury common stock, at cost; 72,000 shares and 68,000 shares, respectively Total stockholders' equity. May 31, 2019 Total cash dividend $16,800,000 ? 26,100,000 36,200,000 (4,412,000) $ ? April 30, 2019 $16,800,000 2,700,000 23,220,000 34,640,000 (4,148,000) $73,212,000 Assume that on June 1 the board of directors declared a cash dividend of $0.60 per share on the outstanding shares of common stock. The dividend will be payable on July 15 to stockholders of record on June 15 e-1. Calculate the total amount…
The shareholders’ equity section of the balance sheet of TNL Systems Inc. included the following accounts at December 31, 2020: Shareholders' Equity ($ in millions) Common stock, 200 million shares at $1 par $ 200 Paid-in capital—excess of par 1,600 Paid-in capital—share repurchase 2 Retained earnings 1,000 Required: 1. During 2021, TNL Systems reacquired shares of its common stock and later sold shares in two separate transactions. Prepare the entries for both the purchase and subsequent resale of the shares assuming the shares are (a) retired and (b) viewed as treasury stock. On February 5, 2021, TNL Systems purchased 8 million shares at $12 per share. On July 9, 2021, the corporation sold 3 million shares at $14 per share. On November 14, 2023, the corporation sold 3 million shares at $9 per share. 2. Prepare the shareholders’ equity section of TNL Systems’ balance sheet at December 31, 2023, comparing the two approaches. Assume all net income earned in 2021–2023 was distributed to…
Francis Inc. has the following stockholders' equity section in its November 30, 2019, balance sheet: Paid-in capital: 12% preferred stock, $60 par value, 1,000 shares authorized, issued, and outstanding Common stock, $8 par value, 50,000 shares authorized, ? shares issued, ? shares outstanding Additional paid-in capital on common stock Additional paid-in capital from treasury stock Retained earnings $ 120,000 270,000 6,500 48,500 Less: Treasury stock, at cost (1,000 shares of common) (9,000) Total stockholders' equity $ Required: a. Calculate the amount of the total annual dividend requirement on preferred stock. b. Calculate the amount that should be shown on the balance sheet for preferred stock. c. Calculate the number of shares of common stock that are issued and the number of shares of common stock that are outstanding. d. On January 1, 2019, the firm's balance sheet showed common stock of $105,000 and additional paid-in capital on common stock of $234,375. The only transaction…
The balance sheet of Consolidated Paper, Inc., included the following shareholders' equity accounts at December 31, 2020: Paid-in capital: Preferred stock, 7.5%, 88,000 shares at $1 par Common stock, 383,800 shares at $1 par Paid-in capital-excess of par, preferred Paid-in capital-excess of par, common Retained earnings $ 88,000 383,800 1,505,000 2,555,000 •8,845,000 (41,800) Treasury stock, at cost; 3,800 common shares Total shareholders' equity $13,335,000 During 2021, several events and transactions affected the retained earnings of Consolidated Paper.
Required Information [The following information applies to the questions displayed below.] Bacon Inc. has the following stockholders' equity section in its May 31, 2019, comparative balance sheets: May 31, 2019 Paid-in capital: Preferred stock, $120 par value, 5%, cumulative, 100,000 shares authorized, 74,000 shares issued and outstanding Common stock, $6 par value, 600,000 shares authorized, 420,000 and 480,000 shares issued, respectively Additional paid-in capital Retained earnings Less: Treasury common stock, at cost; 21,000 shares and 19,500 shares, respectively Total stockholders' equity Par value Number of shares 2. What will be the market price per share of common stock after the split? Market price 3. How many shares of common stock will be in the treasury after the split? $ 8,880,000 Number of shares ? 14,670,000 12,070,000 (1,932,000) $ g. Assume that instead of the stock dividend described in f, the board of directors authorized a 2-for-1 stock split on June 1 when the…
The shareholders' equity section of the balance sheet of TNL Systems Inc. included the following accounts at December 31, 2020: Shareholders' Equity Common stock, 240 million shares at $1 par Paid-in capital-excess of par Paid-in capital-share repurchase Retained earnings ($ in millions) $ 240 1,680 1 1,100 Required: 1. During 2021, TNL Systems reacquired shares of its common stock and later sold shares in two separate transactions. Prepare the entries for both the purchase and subsequent resale of the shares assuming the shares are (a) retired and (b) viewed as treasury stock. On Feb ary 5, 2021, TNL Systems purchased 6 million shares at $10 per share. On July 9, 2021, the corporation sold 2 million shares at $12 per share. On November 14, 2023, the corporation sold 2 million shares at $7 per share. 2. Prepare the shareholders' equity section of TNL Systems' balance sheet at December 31, 2023, comparing the two approaches. Assume all net income earned in 2021-2023 was distributed to…
The December 31, 2023, equity section of ZoomZoom inc's balance sheet appears below ZooZoon Inc. Equity Section of the Balance Sheet December 31, 2023 Contributed capital: Preferred shares, $3.75 cumulative, 33,000 shares authorized and issued Preferred shares, $10 non-cumulative, 8,700 shares authorized and issued Common shares, 330,000 shares authorized and issued Total contributed capital Retained earnings Total equity Required: All the shares were issued on January 1, 2021 (when the corporation began operations) No dividends had been declared during the first two years of operations (2021 and 2022) During 2023, the cash dividends declared and paid totalled $578,300. 1. Calculate the amount of cash dividends paid during 2023 to each of the three classes of shares Show Transcribed Text Cumulative preferred shares Noncumulative preferred shares Common shares Required: All the shares were issued on January 1, 2021 (when the corporation began operations). No dividends had been de first…
Splish Company reported the following amounts in the stockholders’ equity section of its December 31, 2019, balance sheet. Preferred stock, 11%, $100 par (10,000 shares authorized, 2,100 shares issued) $210,000 Common stock, $5 par (91,000 shares authorized, 18,200 shares issued) 91,000 Additional paid-in capital 130,000 Retained earnings 448,000 Total $879,000 During 2020, Splish took part in the following transactions concerning stockholders’ equity. 1. Paid the annual 2019 $11 per share dividend on preferred stock and a $2 per share dividend on common stock. These dividends had been declared on December 31, 2019. 2. Purchased 1,800 shares of its own outstanding common stock for $43 per share. Splish uses the cost method. 3. Reissued 800 treasury shares for land valued at $35,100. 4. Issued 540 shares of preferred stock at $107 per share. 5. Declared a 10% stock dividend on the outstanding common stock when the stock is selling for…
Bacon Inc. has the following stockholders’ equity section in its May 31, 2019, comparative balance sheets: May 31, 2019 April 30, 2019 Paid-in capital: Preferred stock, $120 par value, 9%, cumulative, 200,000 shares authorized, 140,000 shares issued and outstanding $ 16,800,000 $ 16,800,000 Common stock, $5 par value, 1,000,000 shares authorized, 600,000 and 540,000 shares issued, respectively ? 2,700,000 Additional paid-in capital 26,100,000 23,220,000 Retained earnings 36,200,000 34,640,000 Less: Treasury common stock, at cost; 72,000 shares and 68,000 shares, respectively (4,412,000 ) (4,148,000 ) Total stockholders' equity $ ? $ 73,212,000 Assume that on June 1 the board of directors declared a cash dividend of $0.60 per share on the outstanding shares of common stock. The dividend will be payable on July 15 to stockholders of record on June 15.e-1. Calculate the total amount of the dividend.
S The equity sections from the 2023 and 2024 balance sheets of Fab-Form Industries Inc. appeared as follows: Fab-Form Industries Inc. Equity Section of the Balance Sheet December 31, 2023 Contributed capital: Common shares, unlimited shares authorized, 96,200 shares issued and outstanding Retained earnings Total equity Fab-Form Industries Inc. Equity Section of the Balance Sheet December 31, 2024 Contributed capital: Common shares, unlimited shares authorized, 115,600 shares issued and outstanding Retained earnings Total equity $ 690,000 560,608 $1,250,608 $ 837,440 461,600 $1,299,040 On March 16, June 15, September 5, and November 22, 2024, the board of directors declared $0.15 per share cash dividends on the outstanding common shares. On October 14, 2024, 19,400 additional common shares were issued. Required: Under the assumption that there were no transactions affecting retained earnings other than the ones given, determine the 2024 profit (loss) of Fab-Form Industries Inc.

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