Stockholders' Equity: Transactions and Statement The stockholders' equity section of Night Corporation's balance sheet at January 1 follows: Common stock, $4 par value, 300,000 shares authorized, 60,000 shares 240,000 issued, 6.000 shares in treasury Additional paid-in capital In excess of par value From treasury stock Retained earnings 360,000 22,500 382,500 261,000 883,500 Less: Treasury stock (6,000 shares) at cost Total Stockholders䀙 Equity 103,500 780,000 The following transactions affecting stockholders’ equity occurred during the year: Jan. 8 Issued 15,000 shares of previously unissued common stock for $16 cash per share. Mar. 12 Sold all of the treasury shares for $21 cash per share. June 30 Declared a five percent stock dividend on all outstanding shares of common stock. The market value of the stock was $19 per share. July 10 Issued the stock dividend declared on June 30. Oct. 7 Acquired 2.500 shares of common stock as treasury stock at $20 cash per share. Dec. 18 Declared a cash dividend of $1.00 per outstanding common share, payable on January 9 to stockholders of record on December 31. Required a. Prepare journal entries to record the foregoing transactions. b. Prepare a statement of stockholders’ equity. Net income for the year is $255,750.
Stockholders' Equity: Transactions and Statement The stockholders' equity section of Night Corporation's balance sheet at January 1 follows: Common stock, $4 par value, 300,000 shares authorized, 60,000 shares 240,000 issued, 6.000 shares in treasury Additional paid-in capital In excess of par value From treasury stock Retained earnings 360,000 22,500 382,500 261,000 883,500 Less: Treasury stock (6,000 shares) at cost Total Stockholders䀙 Equity 103,500 780,000 The following transactions affecting stockholders’ equity occurred during the year: Jan. 8 Issued 15,000 shares of previously unissued common stock for $16 cash per share. Mar. 12 Sold all of the treasury shares for $21 cash per share. June 30 Declared a five percent stock dividend on all outstanding shares of common stock. The market value of the stock was $19 per share. July 10 Issued the stock dividend declared on June 30. Oct. 7 Acquired 2.500 shares of common stock as treasury stock at $20 cash per share. Dec. 18 Declared a cash dividend of $1.00 per outstanding common share, payable on January 9 to stockholders of record on December 31. Required a. Prepare journal entries to record the foregoing transactions. b. Prepare a statement of stockholders’ equity. Net income for the year is $255,750.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I need help with finding the stock dividends & stock dividend distrubitable for June 30, the stock dividend distrubitable and common stock for July 10, and the cash dividend and dividends payable for Dec 18.
Transcribed Image Text:Stockholders' Equity: Transactions and Statement
The stockholders' equity section of Night Corporation's balance sheet at January 1 follows:
Common stock, $4 par value, 300,000 shares authorized, 60,000 shares
240,000
issued, 6.000 shares in treasury
Additional paid-in capital
In excess of par value
From treasury stock
Retained earnings
360,000
22,500 382,500
261,000
883,500
Less: Treasury stock (6,000 shares) at cost
Total Stockholders䀙 Equity
103,500
780,000
The following transactions affecting stockholders’ equity occurred during the year:
Jan. 8 Issued 15,000 shares of previously unissued common stock for $16 cash per share.
Mar. 12 Sold all of the treasury shares for $21 cash per share.
June 30 Declared a five percent stock dividend on all outstanding shares of common stock. The market value of the stock was $19 per share.
July 10 Issued the stock dividend declared on June 30.
Oct. 7 Acquired 2.500 shares of common stock as treasury stock at $20 cash per share.
Dec. 18 Declared a cash dividend of $1.00 per outstanding common share, payable on January 9 to stockholders of record on December 31.
Required
a. Prepare journal entries to record the foregoing transactions.
b. Prepare a statement of stockholders’ equity. Net income for the year is $255,750.
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