Statement of Stockholders' Equity For the Years Ended December 31, 2020 and 2019 Total Preferred Common Additional Treasury Retained Stockholders' Stock Stock Paid-In Stock Earnings $ 2,000,000 Equity 4,840,000 Balance December 31, 2019 2$ 750,000 2$ 110,000 $ 2,420,000 $ (440,000) Net income 895,000 895,000 Common stock issued 200,000 100,000 300,000 Preferred stock issued (80,000) (100,000) Cash dividends (80,000) (100,000) Stock dividends Treasury stock acquired Balance December 31, 2020 $ 750,000 $ 310,000 $ 2,520,000 $ (440,000)| $ 2,715,000 5,855,000 See Notes to the Financial Statements Required 1 What was the total dollar value received for issuing shares of common stock in 2020? Page 1. Page 2 2 Explain why part of the issuance of common stock is reported in the common stock account and part of it is recorded to Additional paid-in capital account? 3 At the end of 2019 there were 180,000 shares outstanding. At the end of 2020 there were 580,000 shares outstanding. Assume the newly issued shares of common stock were issued on December 31, 2020. Calculate earnings per share (EPS) 4 Explain what the EPS for Frost Company indicates?

Statement of Stockholders' Equity For the Years Ended December 31, 2020 and 2019 Total Preferred Common Additional Treasury Retained Stockholders' Stock Stock Paid-In Stock Earnings $ 2,000,000 Equity 4,840,000 Balance December 31, 2019 2$ 750,000 2$ 110,000 $ 2,420,000 $ (440,000) Net income 895,000 895,000 Common stock issued 200,000 100,000 300,000 Preferred stock issued (80,000) (100,000) Cash dividends (80,000) (100,000) Stock dividends Treasury stock acquired Balance December 31, 2020 $ 750,000 $ 310,000 $ 2,520,000 $ (440,000)| $ 2,715,000 5,855,000 See Notes to the Financial Statements Required 1 What was the total dollar value received for issuing shares of common stock in 2020? Page 1. Page 2 2 Explain why part of the issuance of common stock is reported in the common stock account and part of it is recorded to Additional paid-in capital account? 3 At the end of 2019 there were 180,000 shares outstanding. At the end of 2020 there were 580,000 shares outstanding. Assume the newly issued shares of common stock were issued on December 31, 2020. Calculate earnings per share (EPS) 4 Explain what the EPS for Frost Company indicates?

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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