The accounts below appear in the current year-end trial balance of Trogss Company: Accounts payable 1,760,000 Dividends 1,120,000 Ordinary share capital, at par 4,800,000 Preference share capital, at par 3,200,000 Retained earnings - January 1 1,600,000 Sales 16,000,000 Share premium 1,600,000 Total expenses 12,480,000 Treasury shares - ordinary, at cost What amount should be reported as total shareholders' equity? s00,0 o a9,280,000 O b.13,920,000 O c 13,600,000 o d. 12,800,000

The accounts below appear in the current year-end trial balance of Trogss Company: Accounts payable 1,760,000 Dividends 1,120,000 Ordinary share capital, at par 4,800,000 Preference share capital, at par 3,200,000 Retained earnings - January 1 1,600,000 Sales 16,000,000 Share premium 1,600,000 Total expenses 12,480,000 Treasury shares - ordinary, at cost What amount should be reported as total shareholders' equity? s00,0 o a9,280,000 O b.13,920,000 O c 13,600,000 o d. 12,800,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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At December 31, Idaho Company had the following ending account balances: Retained Earnings: $250,000 Preferred Stock ($100 par, 7% cumulative, 10,000 authorized, 5,000 issued and outstanding): $500,000 Treasury Stock: $40,000 Paid-In Capital in Excess of Par—Common Stock: $625,000 Paid-In Capital in Excess of Par—Preferred Stock: $50,000 Common Stock ($5 par value, 500,000 shares authorized, 105,000 issued): $525,000 What is the total amount of paid-in capital that would be reported on the statement of stockholders’ equity at December 31? a.$1,150,000 b.$1,700,000 c.$1,910,000 d.$1,950,000
Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, Year 1, were as follows: 1. Journalize the selected transactions. a. Issued 15,000 shares of $20 par common stock at $30, receiving cash. b. Issued 4,000 shares of $80 par preferred 5% stock at $100, receiving cash c. Issued $500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of $0.50 per share on common stock and $1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at $40 per share plus a $150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at $33 per share h. Purchased 40,000 shares of Pinkberry Co. stock…
A company with 118,808 authorized shares of $5 par common stock issued 31,951 shares at $16 per share. Subsequently, the company declared a 2% stock dividend on a date when the market price was $33 a share. What is the amount transferred from the retained earnings account to paid-in capital accounts as a result of the stock dividend? Oa. $17,893 Ob. $21,088 Oc. $3,195 Od. $78,413
On October 10, the stockholders' equity section of Sherman Systems appears as follows. Common stock-$10 par value, 80,000 shares authorized, issued, and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity 1. Prepare journal entries to record the following transactions for Sherman Systems. $ 800,000 256,000 928,000 $ 1,984,000 a. Purchased 5,800 shares of its own common stock at $33 per share on October 11. b. Sold 1,200 treasury shares on November 1 for $39 cash per share. c. Sold all remaining treasury shares on November 25 for $32 cash per share. 2. Prepare the stockholders' equity section after the October 11 treasury stock purchase. ✓ Answer is not complete. Complete this question by entering your answers in the tabs below. Required Required 1 2 Prepare journal entries to record the following transactions for Sherman Systems. a. Purchased 5,800 shares of its own common stock at $33 per share on October 11. b. Sold 1,200…
The stockholders’ equity section of Sheridan Inc. at the beginning of the current year appears below. Common stock, $10 par value, authorized 1,043,000 shares, 321,000 shares issued and outstanding $3,210,000 Paid-in capital in excess of par—common stock 562,000 Retained earnings 624,000 During the current year, the following transactions occurred. 1. The company issued to the stockholders 109,000 rights. Ten rights are needed to buy one share of stock at $30. The rights were void after 30 days. The market price of the stock at this time was $32 per share. 2. The company sold to the public a $204,000, 10% bond issue at 104. The company also issued with each $100 bond one detachable stock purchase warrant, which provided for the purchase of common stock at $28 per share. Shortly after issuance, similar bonds without warrants were selling at 96 and the warrants at $8. 3. All but 5,450 of the rights issued in (1) were exercised in 30 days. 4. At the end…
Presented below is information related to a company at the beginning of the year: Common Stock, $10 par $6,700 Retained Earnings 4,700 During the year, 10 shares were reacquired at $11 per share. How much is the total stockholders' equity after the treasury stock transaction, assuming the company accounts for treasury stock under the cost method?
At December 31, the records of Kozmetsky Corporation provided the following selected and incomplete data: Common stock (par $2; no changes during the current year). Shares authorized, 5,000,000. Shares issued, ? issue price $9 per share. Shares held as treasury stock, 11,600 shares, cost $7 per share.. Net income for the current year, $410,720. Common Stock account, $144,000. Dividends declared and paid during the current year, $2 per share. Retained Earnings balance, beginning of year, $740,000. Required: Complete the following: (Round "Earnings per share" to 2 decimal places.) 1-a. Shares issued 1-b. Shares outstanding 2. The balance in Additional Paid-in Capital would be 3. Earnings per share is 4. Total dividends paid on common stock during the current year is 5. Treasury stock should be reported in the stockholders' equity section of the balance sheet in the amount of 6. Assume that the board of directors voted a 2-for-1 stock split. After the stock split, the par value per share…
On October 10, the stockholders’ equity of Sherman Systems appears as follows. Common stock–$10 par value, 84,000 sharesauthorized, issued, and outstanding $ 840,000 Paid-in capital in excess of par value, common stock 276,000 Retained earnings 960,000 Total stockholders’ equity $ 2,076,000 1. Prepare journal entries to record the following transactions for Sherman Systems. Purchased 6,200 shares of its own common stock at $37 per share on October 11. Sold 1,300 treasury shares on November 1 for $43 cash per share. Sold all remaining treasury shares on November 25 for $32 cash per share.
Kohler Corporation reports the following components of stockholders’ equity at December 31 of the prior year. Common stock—$25 par value, 100,000 shares authorized, 60,000 shares issued and outstanding $ 1,500,000 Paid-in capital in excess of par value, common stock 80,000 Retained earnings 460,000 Total stockholders' equity $ 2,040,000 During the current year, the following transactions affected its stockholders’ equity accounts. January 2 Purchased 6,000 shares of its own stock at $15 cash per share. January 5 Directors declared a $4 per share cash dividend payable on February 28 to the February 5 stockholders of record. February 28 Paid the dividend declared on January 5. July 6 Sold 3,000 of its treasury shares at $19 cash per share. August 22 Sold 3,000 of its treasury shares at $11 cash per share. September 5 Directors declared a $4 per share cash dividend payable on October 28 to the September 25 stockholders of record. October 28 Paid the dividend…
At the start of the current year, Mundo Company’s stockholders’ equity account appeared as follows: Common stock, P15 par value; authorized 200,000 shares; issued and outstanding, 150,000 shares 2,250,000 Paid-in capital in excess of par 300,000 Retained earnings 5,000,000 Total 7,550,000 During the year, Mundo entered into the following transactions: May 1 Acquired 30,000 shares of its stock for P1,600,000. June 1 Reissued 15,000 treasury shares at P19 per share. July 1 Declared a cash dividend of P1.50 for holders on record on July 30 to be distributed on January of next year October 1 Reissued 10,000 treasury shares at P16 per share. December 1 Retired the remaining treasury shares. The total stockholders’ equity reported in the current year statement of financial position is Group of answer choices 6,395,000 6,215,000 6,192,500 6,170,000
Kohler Corporation reports the following components of stockholders’ equity at December 31 of the prior year. Common stock—$25 par value, 100,000 shares authorized, 60,000 shares issued and outstanding $ 1,500,000 Paid-in capital in excess of par value, common stock 80,000 Retained earnings 460,000 Total stockholders' equity $ 2,040,000 During the current year, the following transactions affected its stockholders’ equity accounts. January 2 Purchased 6,000 shares of its own stock at $15 cash per share. January 5 Directors declared a $4 per share cash dividend payable on February 28 to the February 5 stockholders of record. February 28 Paid the dividend declared on January 5. July 6 Sold 3,000 of its treasury shares at $19 cash per share. August 22 Sold 3,000 of its treasury shares at $11 cash per share. September 5 Directors declared a $4 per share cash dividend payable on October 28 to the September 25 stockholders of record. October 28 Paid the dividend…
As of the end of Year 1, the shareholders’ equity of Philip Corporation consisted of: Common stock, 80,100 shares at $1 par $ 80,100 Paid-in capital—excess of par 168,210 Retained earnings 121,000 At the beginning of Year 2, the company repurchased and retired 1,100 shares at $8.10 per share. Prepare the appropriate journal entry for the repurchase and retirement of the shares. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field