Sweet Sixteen has two classes of stock authorized: $10 par preferred, and $1 par value common. As of the beginning of 2024, 100 shares of preferred stock and 2,900 shares of common stock have been issued. The following transactions affect stockholders' equity during 2024: March 1 Issue 2,900 additional shares of common stock for $11 per share. April 1 Issue 200 additional shares of preferred stock for $39 per share. June 1 June 30 Declare a cash dividend on both common and preferred stock of $0.30 per share to all stockholders of record on June 15. Pay the cash dividends declared on June 1. August 1 Purchase 200 shares of common treasury stock for $8 per share. October 1 Reissue 100 shares of treasury stock purchased on August 1 for $10 per share. Sweet Sixteen has the following beginning balances in its stockholders' equity accounts on January 1, 2024: Preferred Stock, $1,000; Common Stock, $2,900; Additional Pald-in Capital, $19,400; and Retained Earnings, $11,400. Net Income for the year ended December 31, 2024, Is $7,600. Required: 1. Record each of these transactions. 2. Select whether each of the following transactions Increases (+) or decreases (-) total assets, total liabilities, and total stockholders' equity. Complete this question by entering your answers in the tabs below.
Sweet Sixteen has two classes of stock authorized: $10 par preferred, and $1 par value common. As of the beginning of 2024, 100 shares of preferred stock and 2,900 shares of common stock have been issued. The following transactions affect stockholders' equity during 2024: March 1 Issue 2,900 additional shares of common stock for $11 per share. April 1 Issue 200 additional shares of preferred stock for $39 per share. June 1 June 30 Declare a cash dividend on both common and preferred stock of $0.30 per share to all stockholders of record on June 15. Pay the cash dividends declared on June 1. August 1 Purchase 200 shares of common treasury stock for $8 per share. October 1 Reissue 100 shares of treasury stock purchased on August 1 for $10 per share. Sweet Sixteen has the following beginning balances in its stockholders' equity accounts on January 1, 2024: Preferred Stock, $1,000; Common Stock, $2,900; Additional Pald-in Capital, $19,400; and Retained Earnings, $11,400. Net Income for the year ended December 31, 2024, Is $7,600. Required: 1. Record each of these transactions. 2. Select whether each of the following transactions Increases (+) or decreases (-) total assets, total liabilities, and total stockholders' equity. Complete this question by entering your answers in the tabs below.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:1
Sweet Sixteen has two classes of stock authorized: $10 par preferred, and $1 par value common. As of the beginning of 2024, 100
shares of preferred stock and 2,900 shares of common stock have been issued. The following transactions affect stockholders' equity
during 2024:
eBook
Issue 2,900 additional shares of common stock for $11 per share.
Issue 200 additional shares of preferred stock for $39 per share.
Declare a cash dividend on both common and preferred stock of $0.30 per share to all stockholders of record on June 15.
Pay the cash dividends declared on June 1.
March 1
April 1
June 1
June 30
August 1 Purchase 200 shares of common treasury stock for $8 per share.
October 1 Reissue 100 shares of treasury stock purchased on August 1 for $10 per share.
Sweet Sixteen has the following beginning balances In Its stockholders' equity accounts on January 1, 2024: Preferred Stock, $1,000;
Common Stock, $2,900; Additional Pald-in Capital, $19,400; and Retained Earnings, $11,400. Net Income for the year ended December
31, 2024, IS $7,600.
Required:
1. Record each of these transactions.
2. Select whether each of the following transactions Increases (+) or decreases (-) total assets, total liabilities, and total stockholders'
equity.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Select whether each of the following transactions increases (+) or decreases (-) total assets, total liabilities, and total
stockholders' equity. (If none of the categories apply for a particular item, leave the cell blank.)
Transaction
Issue common stock
Issue preferred stock
Declare cash dividends
Pay cash dividends
Purchase treasury stock
Resell treasury stock
Total
Total
Assets Liabilities
Total
Stockholders'
Equity
< Required 1
Required 2 >
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