Sweet Sixteen has two classes of stock authorized: $10 par preferred, and $1 par value common. As of the beginning of 2024, 150 shares of preferred stock and 1,900 shares of common stock have been issued. The following transactions affect stockholders' equity during 2024: March 1 Issue 1,900 additional shares of common stock for $16 per share. April 1 June 1 Issue 150 additional shares of preferred stock for $29 per share. Declare a cash dividend on both common and preferred stock of $0.55 per share to all stockholders of record on June 15. June 30 Pay the cash dividends declared on June 1. August 1 Purchase 250 shares of common treasury stock for $13 per share. October 1 Resell 150 shares of treasury stock purchased on August 1 for $15 per share. Sweet Sixteen has the following beginning balances in its stockholders' equity accounts on January 1, 2024: Preferred Stock, $1,500; Common Stock, $1,900; Additional Paid-in Capital, $18,400; and Retained Earnings, $10,400. Net income for the year ended December 31, 2024, is $7,100. Taking into consideration the beginning balances on January 1, 2024 and all the transactions during 2024, respond to the following for Sweet Sixteen: Required: 1. Prepare the stockholders' equity section of the balance sheet as of December 31, 2024. 2. Prepare the statement of stockholders' equity for the year ended December 31, 2024.
Sweet Sixteen has two classes of stock authorized: $10 par preferred, and $1 par value common. As of the beginning of 2024, 150 shares of preferred stock and 1,900 shares of common stock have been issued. The following transactions affect stockholders' equity during 2024: March 1 Issue 1,900 additional shares of common stock for $16 per share. April 1 June 1 Issue 150 additional shares of preferred stock for $29 per share. Declare a cash dividend on both common and preferred stock of $0.55 per share to all stockholders of record on June 15. June 30 Pay the cash dividends declared on June 1. August 1 Purchase 250 shares of common treasury stock for $13 per share. October 1 Resell 150 shares of treasury stock purchased on August 1 for $15 per share. Sweet Sixteen has the following beginning balances in its stockholders' equity accounts on January 1, 2024: Preferred Stock, $1,500; Common Stock, $1,900; Additional Paid-in Capital, $18,400; and Retained Earnings, $10,400. Net income for the year ended December 31, 2024, is $7,100. Taking into consideration the beginning balances on January 1, 2024 and all the transactions during 2024, respond to the following for Sweet Sixteen: Required: 1. Prepare the stockholders' equity section of the balance sheet as of December 31, 2024. 2. Prepare the statement of stockholders' equity for the year ended December 31, 2024.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Sweet Sixteen has two classes of stock authorized: $10 par preferred, and $1 par value common. As of the beginning of 2024, 150
shares of preferred stock and 1,900 shares of common stock have been issued. The following transactions affect stockholders' equity
during 2024:
March 1
April 1
June 1
Issue 1,900 additional shares of common stock for $16 per share.
Issue 150 additional shares of preferred stock for $29 per share.
Declare a cash dividend on both common and preferred stock of $0.55 per share to all stockholders of record on
June 15.
June 30
Pay the cash dividends declared on June 1.
Purchase 250 shares of common treasury stock for $13 per share.
August 1
October 1 Resell 150 shares of treasury stock purchased on August 1 for $15 per share.
Sweet Sixteen has the following beginning balances in its stockholders' equity accounts on January 1, 2024: Preferred Stock, $1,500;
Common Stock, $1,900; Additional Paid-in Capital, $18,400; and Retained Earnings, $10,400. Net income for the year ended December
31, 2024, is $7,100.
Taking into consideration the beginning balances on January 1, 2024 and all the transactions during 2024, respond to the following for
Sweet Sixteen:
Required:
1. Prepare the stockholders' equity section of the balance sheet as of December 31, 2024.
2. Prepare the statement of stockholders' equity for the year ended December 31, 2024.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Prepare the stockholders' equity section of the balance sheet as of December 31, 2024. (Amounts to be deducted should be
indicated by a minus sign.)
SWEET SIXTEEN
Balance Sheet
(Stockholders' Equity Section)
December 31, 2024
Stockholders' equity:
Total paid-in capital
Total stockholders' equity
Required 1
Required 2 >
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