tequired information The following information applies to the questions displayed below.] Homestead Oil Corp. was incorporated on January 1, 2019, and issued the following stock for cash: 830,000 shares of no-par common stock were authorized; 150,000 shares were issued on January 1, 2019, at $17.00 per share. 210,000 shares of S110 par value, 8.50% cumulative, preferred stock were authorized; 57,000 shares were issued on January 1, 2019, at $140 per share. Net income for the years ended December 31, 2019 and 2020 was $1,380,000 and $2,570,000, respectively. No dividends were declared or paid during 2019. However, on December 28, 2020, the board of directors of Homestead declared dividends of $1,750,000, payable on February 12, 2021, to holders of record as of January 19, 2021.
tequired information The following information applies to the questions displayed below.] Homestead Oil Corp. was incorporated on January 1, 2019, and issued the following stock for cash: 830,000 shares of no-par common stock were authorized; 150,000 shares were issued on January 1, 2019, at $17.00 per share. 210,000 shares of S110 par value, 8.50% cumulative, preferred stock were authorized; 57,000 shares were issued on January 1, 2019, at $140 per share. Net income for the years ended December 31, 2019 and 2020 was $1,380,000 and $2,570,000, respectively. No dividends were declared or paid during 2019. However, on December 28, 2020, the board of directors of Homestead declared dividends of $1,750,000, payable on February 12, 2021, to holders of record as of January 19, 2021.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Required information
[The following information applies to the questions displayed below.]
Homestead Oil Corp. was incorporated on January 1, 2019, and issued the following stock for cash:
• 830,000 shares of no-par common stock were authorized; 150,000 shares were issued on January 1, 2019, at $17.00
per share.
• 210,000 shares of $110 par value, 8.50% cumulative, preferred stock were authorized; 57,000 shares were issued on
January 1, 2019, at $140 per share.
Net income for the years ended December 31, 2019 and 2020 was $1,380,000 and $2,570,000, respectively.
• No dividends were declared or paid during 2019. However, on December 28, 2020, the board of directors of
Homestead declared dividends of $1,750,000, payable on February 12, 2021, to holders of record as of January 19,
2021.
Required:
1. Use the horizontal model for the issuance of common stock and preferred stock on January 1, 2019. Indicate the financial statement
effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.)
Balance Sheet
Income Statement
Assets
Liabilities
Stockholders' Equity
Net Income
Revenues
Expenses
=](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb152a03f-e03f-444f-a23b-4ac95a31e256%2F5ffbf70e-ea0d-427f-ac83-9ff5c3f4e2bf%2F4nqlwd_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Homestead Oil Corp. was incorporated on January 1, 2019, and issued the following stock for cash:
• 830,000 shares of no-par common stock were authorized; 150,000 shares were issued on January 1, 2019, at $17.00
per share.
• 210,000 shares of $110 par value, 8.50% cumulative, preferred stock were authorized; 57,000 shares were issued on
January 1, 2019, at $140 per share.
Net income for the years ended December 31, 2019 and 2020 was $1,380,000 and $2,570,000, respectively.
• No dividends were declared or paid during 2019. However, on December 28, 2020, the board of directors of
Homestead declared dividends of $1,750,000, payable on February 12, 2021, to holders of record as of January 19,
2021.
Required:
1. Use the horizontal model for the issuance of common stock and preferred stock on January 1, 2019. Indicate the financial statement
effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.)
Balance Sheet
Income Statement
Assets
Liabilities
Stockholders' Equity
Net Income
Revenues
Expenses
=
![2. Use the horizontal model for the declaration of dividends on December 28, 2020. Indicate the financial statement effect. (Enter
decreases with a minus sign to indicate a negative financial statement effect.)
Balance Sheet
Income Statement
Assets
Liabilities
Stockholders' Equity
Net Income
Revenues
Expenses
3. Use the horizontal model for the payment of dividends on February 12, 2021. Indicate the financial statement effect. (Enter
decreases with a minus sign to indicate a negative financial statement effect.)
Balance Sheet
Income Statement
Assets
Liabilities
Stockholders' Equity -
Net Income
Revenues
Expenses
+](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb152a03f-e03f-444f-a23b-4ac95a31e256%2F5ffbf70e-ea0d-427f-ac83-9ff5c3f4e2bf%2Fqgxkx0j_processed.png&w=3840&q=75)
Transcribed Image Text:2. Use the horizontal model for the declaration of dividends on December 28, 2020. Indicate the financial statement effect. (Enter
decreases with a minus sign to indicate a negative financial statement effect.)
Balance Sheet
Income Statement
Assets
Liabilities
Stockholders' Equity
Net Income
Revenues
Expenses
3. Use the horizontal model for the payment of dividends on February 12, 2021. Indicate the financial statement effect. (Enter
decreases with a minus sign to indicate a negative financial statement effect.)
Balance Sheet
Income Statement
Assets
Liabilities
Stockholders' Equity -
Net Income
Revenues
Expenses
+
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