PROBLEM 11.9BReporting Stockholders'Equity with Treasury Stockand Stock SplitsLO11-4, LO11-5, LO11-7,LO11-8, L011-9Early in 2017, Laird Industries was formed with authorization to issue 150,000 shares of $20 parvalue common stock and 10,000 shares of $100 par value cumulative preferred stock. During 2017.all the preferred stock was issued at par, and 80,000 shares of common stock were sold for $35 pershare. The preferred stock is entitled to a dividend equal to 6 percent of its par value before anydividends are paid on the common stock.During its first five years of business (2015 through 2021), the company earned incometotaling $3,800,000 and paid dividends of 60 cents per share each year on the common stockoutstanding.On January 2, 2019, the company purchased 1,000 shares of its own common stock in the openmarket for $40,000. On January 2, 2021, it reissued 600 shares of this treasury stock for $30,000.The remaining 400 shares were still held in treasury at December 31, 2021.Instructionsa. Prepare the stockholders' equity section of the balance sheet at December 31, 2021Include a supporting schedule showing (1) your computation of any paid-in capital ontreasury stock and (2) retained earnings at the balance sheet date. (Hint: Income increasesretained earnings, whereas dividends reduce retained earnings. Dividends are not paid onshares of stock held in treasury.).b.As of December 31, 2021, compute the company's book value per share of common stock.(Hint: Book value per share is computed only on the shares of stock outstanding.)c.At December 31, 2021, shares of the company's common stock were trading at $56.Explain what would have happened to the market price per share had the company splitits stock 2-for-1 at this date. Also explain what would have happened to the par value ofthe common stock and to the number of common shares outstanding.

Stockholders' equity is the assets remaining in an entity after all liabilities have been paid. It…

Answered: stockholders' equity section of the…

FINANCIAL ACCOUNTING

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Chapter1: Financial Statements And Business Decisions

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CYCLONE, INC. Statement of Stockholders' Equity Year ended Dec. 31, 2021 Common Stock Total Stockholders' Retained Earnings Equity Beginning balance Issuances of stock Add: Net income Less: Dividends 2$ 13,000 $ 6,000 $ 19,000 4,000 4,000 Ending balance 2$ 15,000 $ 7,000 $ 22,000
On Dec 15, 2019 the board of directors of Flexsttel declared a cash dividend. The dividend is payable on Jan 8, 2019, of $0.80 per share on the 2,000,000 common shares outstanding. On dec 15, 2019 Flexsteel should: A. Decrease retained earnings $1.6 million and increase expenses $1.6 million B. Debit dividends $1.6 million and credit dividends payable by $1.6 million C. Not prepare a journal entry because the event had no effect on the corporation's financial position until 2020. D. Decrease cash $1.6 million and decrease retained earnings $1.6 million
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 The company declared and paid a cash dividend on February 1, 2021 of $1,400,000. Dividends had not been declared for the past two years, 2019 and 2020. now assume that for this question only that the preferred shares were non cumulative and fully participating. How much will each shareholder group receive? Select one: a. All $1,400,000 to Common since the Preferred are non-participating. b. Each group receives an equal amount of $700,000 per group. c. $270,000 to Preferred and $1,130,000 to Common. d. $807,692 to Preferred and $592,308 to Common. e. None of the above.
On June 30, 2021, when ABC Co. stock was selling for $65 each, the equity accounts had the following balances: Common Stock ($50 par value, 50,000 issued) $2,500,000 Capital Contributed in Excess of Par Value—Common Stocks 600,000 Retained Earnings 4,200,000 How much will the Common Stock account balance be after declaring and distributing a 100% stock dividend? a. $5,000,000. b. $7,300,000. c. $2,500,000.
Question-based on, "stockholders equity section". I have tried it but got the red outline boxes incorrect. Please help me correct those.
(b) Prepare the stockholders' equity section at December 31, 2020. (Enter account name only and do not provide descriptive information.) Buffalo Company Balance Sheet (in millions of dollars) (Partial) Paid-in Capital: Paid-in Capital Common Stock- Additional Paid-in Capital subt Less Treasury Stock Total Stockholders' Equity eTextbook and Medial List of Accounts 1000000
B. At December 31,2019 Facebook company had 20,000 shares of P20 par value freacury shares which were acquired at 924 per share. In may 2020, facebook issued 15,000 of these treasury shares at P20 each. The cost method is used to reord the treasury shart show in notes to FinancialLstakments as a rertriction of retained earnings as transactions. At December31,2020 what amount should Tacebook result of its treasury share trancaction? VVICTORY
These financial statement items are for Sunland Corporation at year end, July 31, 2021: Operating expenses Salaries expense Deferred revenue Utilities expense Equipment Accounts payable Service revenue Rent revenue Common shares Cash Accounts receivable D Accumulated depreciation-equipment $32,500 46,700 12,000 2,600 70,200 5,020 116,100 19,000 27,500 5,560 16,100 5,800 Interest payable Supplies expense Dividends declared Depreciation expense Retained earnings, August 1, 2020 Rent expense Income tax expense Supplies Trading investments Bank loan payable (due December 31, 2021) Interest expense O $900 777891 700 14,500 3,500 22,940 11,500 5,700 2,100 20,500 24,800 Additional information: Sunland started the year with $14,000 of common shares and issued additional shares for $13,500 during the year. 1,900 O W
The equity portions of a company's balance sheets for end of 2021 and 2022 are shown below: 2021 2022 $1,898,646 $3,818,440 $2,685,439 $6,714,937 $2,547,130 $7,242,627 Calculate the average price per share at which new shares were sold in 2022. Common Stock ($0.50 par) Capital Surplus Retained Earnings 0.78 1.55 0.50 O None of these options are correct 1.05
WHAT IS THE TOTAL SHAREHOLDERS' EQUITY?

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