SHAREHOLDERS EQUITY On December 31, 2015 the shareholders' equity section of Agnes Inc.'s balance sheet appeared as presented below:   Common stock, $6 par, 800,000 shares $ 4,800,000 Issued and outstanding Paid-in capital in excess of par 32,000,000 Retained Earnings 28,000,000 $64,800,000   During 2016, the following events occurred: 1/15: Agnes declared and distributed a 10% stock dividend when the market price of the stock was $55 per share. 7/5: Agnes issued for $4,000,000 a combination of 50,000 shares of common and 20,000 shares of 8%, $100 par preferred stock. The market value of the common and preferred shares was $50 and $125, respectively at the date of issuance. 9/1: Agnes split its common 3:1. 10/9: Agnes declared and distributed a 35% stock dividend when the market price of the stock was $25 per share. 12/31: Agnes declared a $2 per share cash dividend payable 3/1/17 for common shareholders and paid its preferred dividend in full.   Prepare all entries for the events above AND based only on these events prepare the shareholders' equity section of Agnes Inc.'s balance sheet on December 31, 2016. Make sure you keep track of the number of common and preferred shares after each transaction, as well as the par values.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

SHAREHOLDERS EQUITY

On December 31, 2015 the shareholders' equity section of Agnes Inc.'s balance sheet appeared as presented below:

 

Common stock, $6 par, 800,000 shares

$ 4,800,000

Issued and outstanding

Paid-in capital in excess of par

32,000,000

Retained Earnings

28,000,000

$64,800,000

 

During 2016, the following events occurred:

1/15: Agnes declared and distributed a 10% stock dividend when the market price of the stock was $55 per share.

7/5: Agnes issued for $4,000,000 a combination of 50,000 shares of common and 20,000 shares of 8%, $100 par preferred stock. The market value of the common and preferred shares was $50 and $125, respectively at the date of issuance.

9/1: Agnes split its common 3:1.

10/9: Agnes declared and distributed a 35% stock dividend when the market price of the stock was $25 per share.

12/31: Agnes declared a $2 per share cash dividend payable 3/1/17 for common shareholders and paid its preferred dividend in full.

 

Prepare all entries for the events above AND based only on these events prepare the shareholders' equity section of Agnes Inc.'s balance sheet on December 31, 2016.

Make sure you keep track of the number of common and preferred shares after each transaction, as well as the par values.

Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education