The following information is from the records of Fortune Inc. At this point all adjusting entries have been madePlease see attached pictures. Other Data: Information on adjusting entireties that took place in the company. Note, the stock amounts may need to be added to the provided beginning numbers to correctly prepare financial statements. Issued 15,000 shares of $20 par common stock at $30, receiving cash.Issued 4,000 shares of $80 par preferred 5% stock at $100, receiving cash.Issued $500,000 of 10-year, 5% bonds at 104, with interest payable semiannually.Declared a quarterly dividend of $0.50 per share on common stock and $1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. Journalize the common stock and the preferred stock entries separately.Paid the cash dividends declared in the previous bullet point..Purchased 8,000 shares of treasury common stock at $33 per share.Declared a $1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued.Paid the cash dividends to the preferred stockholders.Sold, at $38 per share, 2,600 shares of treasury common stock purchased in the sixth bullet point.Recorded the payment of semiannual interest on the bonds issued in in bullet point 3 and the amortization of the premium for six months. The amortization is determined using the straight-line method.The business also had a Store Supplies Expense of $21,000 during the year.For Part 1, using the data above prepare a statement of stockholders' equity. Retained earnings and balance sheet data:Accounts payable$194,300Accounts receivable545,000Accumulated depreciation-office buildings and equipment1,580,000Accumulated depreciation-store buildings and equipment4,126,000Allowance for doubtful accounts8,450Bonds payable, 5%, due in 10 years500,000Cash282,850Common stock, $20 par (400,000 shares authorized;85,000 shares issued, 94,600 outstanding), January 1, 20Y81,700,000Dividends:Cash dividends for common stock155,120Cash dividends for preferred stock100,000Goodwill700,000Income tax payable44,000Interest receivable1,200Inventory (December 31, 20Y8), at lower of cost (FIFO) or market778,000Office buildings and equipment4,320,000Paid-in capital from sale of treasury stock, January 1, 20Y8Paid-in capital in excess of par-common stock, January 1, 20Y8736,800Paid-in capital in excess of par-preferred stock, January 1, 20Y870,000 Paid-in capital from sale of treasury stock, January 1, 20Y8Paid-in capital in excess of par-common stock, January 1, 20Y8736,800Paid-in capital in excess of par-preferred stock, January 1, 20Y870,000Preferred 5% stock, $80 par (30,000 shares authorized;16,000 shares issued), January 1, 20Y81,280,000Premium on bonds payable19,000Prepaid expenses27,400Retained earnings, January 1, 20Y88,197,220Store buildings and equipment12,560,000Treasury stock, January 1, 208

Statement of changes in stockholders’ equity: The statement which reports the changes in stock,…

Retained earnings and balance sheet data: Accounts payable $194,300 Accounts receivable 545,000 Accumulated depreciation-office buildings and equipment 1,580,000 Accumulated depreciation-store buildings and equipment 4,126,000 Allowance for doubtful accounts 8,450 Bonds payable, 5%, due in 10 years 500,000 Cash 282,850 Common stock, $20 par (400,000 shares authorized; 85,000 shares issued, 94,600 outstanding), January 1, 20Y8 1,700,000 Dividends: Cash dividends for common stock 155,120 Cash dividends for preferred stock 100,000 Goodwill 700,000 Income tax payable 44,000 Interest receivable 1,200 Inventory (December 31, 20Y8), at lower of cost (FIFO) or market 778,000 Office buildings and equipment 4,320,000 Paid-in capital from sale of treasury stock, January 1, 20Y8 Paid-in capital in excess of par-common stock, January 1, 20Y8 736,800 Paid-in capital in excess of par-preferred stock, January 1, 20Y8 70,000 Paid-in capital from sale of treasury stock, January 1, 20Y8 Paid-in capital in excess of par-common stock, January 1, 20Y8 736,800 Paid-in capital in excess of par-preferred stock, January 1, 20Y8 70,000 Preferred 5% stock, $80 par (30,000 shares authorized; 16,000 shares issued), January 1, 20Y8 1,280,000 Premium on bonds payable 19,000 Prepaid expenses 27,400 Retained earnings, January 1, 20Y8 8,197,220 Store buildings and equipment 12,560,000 Treasury stock, January 1, 208

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 information is from the records of Fortune Inc. At this point all adjusting entries have been made

Please see attached pictures.

Other Data:

Information on adjusting entireties that took place in the company. Note, the stock amounts may need to be added to the provided beginning numbers to correctly prepare financial statements.

Issued 15,000 shares of $20 par common stock at $30, receiving cash.
Issued 4,000 shares of $80 par preferred 5% stock at $100, receiving cash.
Issued $500,000 of 10-year, 5% bonds at 104, with interest payable semiannually.
Declared a quarterly dividend of $0.50 per share on common stock and $1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. Journalize the common stock and the preferred stock entries separately.
Paid the cash dividends declared in the previous bullet point..
Purchased 8,000 shares of treasury common stock at $33 per share.
Declared a $1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued.
Paid the cash dividends to the preferred stockholders.
Sold, at $38 per share, 2,600 shares of treasury common stock purchased in the sixth bullet point.
Recorded the payment of semiannual interest on the bonds issued in in bullet point 3 and the amortization of the premium for six months. The amortization is determined using the straight-line method.
The business also had a Store Supplies Expense of $21,000 during the year.

For Part 1, using the data above prepare a statement of stockholders' equity.

Retained earnings and balance sheet data:
Accounts payable
$194,300
Accounts receivable
545,000
Accumulated depreciation-office buildings and equipment
1,580,000
Accumulated depreciation-store buildings and equipment
4,126,000
Allowance for doubtful accounts
8,450
Bonds payable, 5%, due in 10 years
500,000
Cash
282,850
Common stock, $20 par (400,000 shares authorized;
85,000 shares issued, 94,600 outstanding), January 1, 20Y8
1,700,000
Dividends:
Cash dividends for common stock
155,120
Cash dividends for preferred stock
100,000
Goodwill
700,000
Income tax payable
44,000
Interest receivable
1,200
Inventory (December 31, 20Y8), at lower of cost (FIFO) or market
778,000
Office buildings and equipment
4,320,000
Paid-in capital from sale of treasury stock, January 1, 20Y8
Paid-in capital in excess of par-common stock, January 1, 20Y8
736,800
Paid-in capital in excess of par-preferred stock, January 1, 20Y8
70,000

Paid-in capital from sale of treasury stock, January 1, 20Y8
Paid-in capital in excess of par-common stock, January 1, 20Y8
736,800
Paid-in capital in excess of par-preferred stock, January 1, 20Y8
70,000
Preferred 5% stock, $80 par (30,000 shares authorized;
16,000 shares issued), January 1, 20Y8
1,280,000
Premium on bonds payable
19,000
Prepaid expenses
27,400
Retained earnings, January 1, 20Y8
8,197,220
Store buildings and equipment
12,560,000
Treasury stock, January 1, 208

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