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, $6 par value, 600,000 shares authorized, 420,000 and 480,000shares issued, respectivelyAdditional paid-in capitalRetained earningsLess: Treasury common stock, at cost; 21,000 shares and 19,500 shares,respectivelyTotal stockholders' equityAssetsAdditional paid-in capitalCashCommon stockDividends payable=Balance SheetLiabilities+++$ 8,880,000+14,670,00012,070,000(1,932,000)1-1. Assume that on June 1 the market value of the common stock was $42 per share and that the board of directors declared a 4%stock dividend on the issued shares of common stock. Use the horizontal model to show the issuance of the stock dividend. Indicatethe financial statement effect. (Enter decreases with a minus sign to Indicate a negative financial statement effect.)$?April 30, 2019Stockholders' Equity$8,880,0002,400,00014,140,00011,794,000(1,872,000)$35,342,000Net Income===Income StatementRevenuesExpenses 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 400,000shares 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 $42 per share and that the board of directors declared a 4%stock dividend on the issued shares of common stock. Prepare journal entry to show the issuance of the stock dividend. (If no entry isrequired for a transaction/event, select "No journal entry required" in the first account fleld.)General JournalClear entryDebitCredit$ 8,880,000View general journal?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

A stock dividend is another form of distribution to the stockholders instead of paying cash to them…

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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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The following partial information is taken from the comparative balance sheet of Levi Corporation: Shareholders’ equity 12/31/2021 12/31/2020 Common stock, $5 par; 36 million shares authorized; 31 million sharesissued and 26 million shares outstanding at 12/31/2021; and ____million sharesissued and ____shares outstanding at 12/31/2020. $ 155 million $ 130 million Additional paid-in capital on common stock 523 million 401 million Retained earnings 192 million 160 million Treasury common stock, at cost, 5 million shares at 12/31/2021 and 2 millionshares at 12/31/2020 (85 million) (48 million) Total shareholders’ equity $ 785 million $ 643 million What was the average price of the additional treasury shares purchased by Levi during 2021? (Round your answer to 2 decimal places.)
Walker Ltd. had the following share transactions in 2021: Event Shares Opening balance, common shares, January 1, 2021 120,000 Common shares issued, March 1, 2021 60,000 Preferred shares issued, May 1, 2021 25,000 Common shares repurchased, June 1, 2021 30,000 What was the weighted average number of common shares outstanding in 2021? Question 7 options: 112,500 169,166 152,500 150,000
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! 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, $130 par value, 6%, cumulative, 100,000 shares authorized, 86,000 shares issued and outstanding Common stock, $4 par value, 600,000 shares authorized, 370,000 and 350,000 shares issued, respectively Additional paid-in capital Retained earnings Less: Treasury common stock, at cost; 22,000 shares and 21,000 shares, respectively Total stockholders' equity Assets Balance Sheet Liabilities + + + $11,180,000 + ? 14,840,000 12,240,000 (2,024,000) $ f-1. Assume that on June 1 the market value of the common stock was $32 per share and that the board of directors declared a 5% stock dividend on the issued shares of common stock. Use the horizontal model to show the issuance of the stock dividend. Indicate the financial statement effect. (Enter decreases…
On January 1, 2024, Dolar Incorporated had the following account balances in its shareholders' equity accounts. Common stock, $1 par, 241,000 shares issued Paid-in capital-excess of par, common Paid-in capital-excess of par, preferred Preferred stock, $100 par, 19,500 shares outstanding Retained earnings Treasury stock, at cost, 4,100 shares During 2024, Dolar Incorporated had several transactions relating to common stock. January 15: February 17: April 10: July 18: December 1: December 20: Required: $ 241,000 482,000 195,000 1,950,000 3,900,000 20,500 Declared a property dividend of 100,000 shares of Burak Company (book value $11.9 per share, fair value $9.95 per share). Distributed the property dividend. A 2-for-1 stock split was declared and distributed on outstanding common stock and effected in the form of a stock dividend. (Dolar chose to reduce Paid-in capital-excess of par.) The fair value of the stock was $4 on this date. Declared and distributed a 4% stock dividend on…
Stockholders' equity accounts, arranged aphabetically are the ledger of Pina Colada Corp. at December 31, 2020. Common Stock ($5 stated value) $1,675,000 Paid-in capital inexcess of par-preferred stock 279,000 Paid-in capital in excess of stated value-common stock. 936,000 Preferred stock (8%, $103 par) 489,250 Ratained Earnings 1,120,000 Treasury Stock (12,000 common shares) 144,000 Prepare the stockholders' equity section of the balance sheet at December 31, 2020. *please solve and explain process. Thank you
The equity section of the December 31", 2025, balance sheet for BOOYA Inc. showed the following: BOOYA Inc. Equity Section of the Balance Sheet December 31, 2025 Contributed Capital: Preferred shares, $0.25 non-cumulative, 80,000 shares authorized, 60,000 shares issued and outstanding Common shares, 250,000 shares authorized, 120,000 shares issued and outstanding Total contributed capital Retained earnings Total equity $150,000 120.000 $270,000 92.500 $362,500 During the year 2026, BOOYA Inc had the following transactions affecting equity accounts: Sold 20,000 common shares for a total of $21,500 cash Sold 5,000 preferred shares for $3.00 each, cash. Issued and exchanged 7,000 common shares for equipment with a list price of $10,000 (fair value unknown). Common shares were trading at $1.42 on June 15th. Jan. 3 Mar. 1 June 15. Closed the Income Summary account, which showed a credit balance of $175,000. Dec. 31 The board of directors had not declared a dividend for the past two years…
Comparative statements of shareholders’ equity for Anaconda International Corporation were reported as follows for the fiscal years ending December 31, 2021, 2022, and 2023. ANACONDA INTERNATIONAL CORPORATIONStatements of Shareholders' EquityFor the Years Ended Dec. 31, 2021, 2022, and 2023($ in millions) Preferred Stock$10 par Common Stock$1 par AdditionalPaid-In Capital Retained Earnings TotalShareholders' Equity Balance at January 1, 2021 65 520 1,860 2,445 Sale of preferred shares 30 900 930 Sale of common shares 7 56 63 Cash dividend, preferred (3 ) (3 ) Cash dividend, common (17 ) (17 ) Net income 340 340 Balance at December 31, 2021 30 72 1,476 2,180 3,758 Retirement of shares (2 ) (16 ) (24 ) (42 ) Cash dividend, preferred…
Bramble Corp. reported the following balances at December 31, 2021: common stock $408,000, paid-in Capital in Excess of Par- common stock $106,000, and retained earnings $242,000. During 2022, the following transactions affected stockholders' equity. 1. 2. 3. 4. Issued preferred stock with a par value of $128,500 for $209,000. Purchased treasury stock (common) for $36,500. Earned net income of $135,000. Declared and paid cash dividends of $52,500. Prepare the stockholders' equity section of Bramble Corp's December 31, 2022, balance sheet.
On January 1, 2021, the stockholders’ equity section of Jayhawk Corporation’s balance sheet showed the following Preferred stock, $100 par value, 5%, 50,000 shares authorized, 5,000 shares issued and outstanding $500,000 Additional Paid-in-Capital, Preferred Stock 100,000 Common stock, $3 par value, 500,000 shares authorized, 20,000 shares issued and outstanding 60,000 Additional Paid-in-Capital, Common Stock 250,000 Total Contributed Capital 910,000 Retained Earnings 320,000 Total Stockholders' Equity $1,230,000 During the year, 2021, the following transactions occurred: February 2 Issued 2,000 shares of common stock for $22 per share. April 15 Issued 1,000 shares of preferred stock for $125 per share. July 10 Repurchased 500 shares of common stock (treasury stock) at $20 per share. Required: Prepare journal entries to…
Wheaton Tire Inc., [WTI] reported the following excerpts from shareholders’ equity on January 1, 2021: Preferred shares, 0.90, 300,000 issued and outstanding $6,000,000 Common shares, 400,000 issued and outstanding $4,400,000 For This Question Only, assume that the company declared/distributed a 5% stock dividend on January 2, 2021 when the market price of the common shares was $10.50 each, prior to this dividend. What entry, if any, should WTI make to record this transaction? Select one: a. No Journal Entry required for this transaction. Only a Proforma Entry should be made. b. DR Retained Earnings, $210,000; CR Common Shares, $210,000 c. DR Retained Earnings, $200,000; CR Common Shares, $200,000 d. DR Retained Earnings, $220,000; CR Common Shares, $220,000 e. DR Retained Earnings, $225,000; CR Common Stock Dividend Distributable, $225,000.

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