The authorized share capital of the Alfred Cake Company is 120,000 shares. The equity is currently shown in the company’s books as follows:         Common stock ($2 par value) $ 69,000 Additional paid-in capital   19,000 Retained earnings   39,000 Common equity $ 127,000 Treasury stock (4,000 shares)   13,000 Net common equity $ 114,000     a. How many shares are issued?   b. How many shares are outstanding?   c. How many more shares can be issued without the approval of shareholders?

Q: Common stock-$10 par value, 95,000 shares authorized, issued, and outstanding Paid-in capital in…

A: Treasury stock is the shares repurchased from the existing shareholders. Thus they reduce the amount…

Q: The stockholders' equity section of Concord Inc. at the beginning of the current year appears below.…

A: A change you make to your records to more accurately reconcile your income and expenses with your…

Q: A company with 88,000 authorized shares of $8 par common stock issued 30,000 shares at $12.…

A: Retained earnings are the earning which is not distributed among shareholders in the form of…

Q: Using the following information, prepare the Stockholders’ equity section of the balance sheet.…

A: Stockholders' equity is the equity section of the balance sheet for a corporation. The stockholders'…

Q: The balance sheet caption for common stock is:  Common stock, $10 par value, 7,000,000 shares…

A: We have the following information: Common Stock par value: $10 Shares Authorized: 7,000,000 Shares…

Q: Nexis Corp. issues 2,870 shares of $8 par value common stock at $17 per share. When the transaction…

A: Common stock can be issued at more price than the par value of the shares. The premium on in excess…

Q: Netpass Company has 100,000 shares of common stock authorized, 90,000 shares issued, and 40,000…

A: No. of shares issued and outstanding = No. of common stock issued - treasury stock = 90000 shares -…

Q: sing the following accounts and balances, prepare the “Stockholders’ Equity” section of the balance…

A: Balance sheet is the financial statement of the firm that involves the aggregate debt, liabilities,…

Q: Skysong, Inc. has these accounts at December 31: Common Stock, $10 par, 5,300 shares issued,…

A: Definition: Statement of stockholder's equity: This statement reports the beginning stockholder's…

Q: Using the following information, prepare the Stockholders’ equity section of the balance sheet.…

A: Balance sheet: The balance sheet shows the financial position of the company by recording all the…

Q: Netpass Company has 300,000 shares of common stock authorized, 270,000 shares issued, and100,000…

A: Outstanding shares = Issued shares - Treasury shares                                  = 270,000…

Q: Enscoe Enterprises, Incorporated (EEI) has 300,000 shares authorized, 230,000 shares issued, and…

A: Outstanding shares represent the total ownership in a company held by investors, while treasury…

Q: following ansactions mad by Snap Company. a. Prepare journal entries for the following transactions:…

A: Treasury stock which can commonly referred to as the reacquired stock, is the stock which has been…

Q: A company with 94,000 authorized shares of $7 par common stock issued 36,000 shares at $16.…

A: Given that: Issued common shares = 36,000 shares Market price per share = $32 per share

Q: The board of directors of  Elston  Inc. declared a $0.60 per share cash dividend on its $1 par…

A: Cash dividends can be defined as the amount of cash distributed by the company to its shareholders.…

Q: Enscoe Enterprises, Incorporated (EEl) has 240,000 shares authorized, 210,000 shares issued, and…

A: Shares outstanding=Shares issued-Shares reacquired Book value per share=(Common stock+Retained…

Q: Grape Corporation reported the following equity section on its current balance sheet. The common…

A: Common stock includes the majority of stock market or public exchange in which the investors…

Q: Using the following accounts and balances, prepare the stockholders' equity section of the balance…

A: Shareholders equity is a financial document which is presented along with balance sheet. It inclides…

Q: Torre Company has the following account balances on December 31. Common Stock, $5 par (60,000 shares…

A: Stockholders' Equity Also Called As Shareholders' Equity. It Includes Contributed Capital,…

Q: Prepare journal entries to record the following transactions for Sherman Systems. a. Purchased…

A: The journal entries are prepared to record the transactions on regular basis. The treasury stock…

Q: During its first year of operations, Bridgeport Corporation had the following transactions…

A: Lets understand the basics.Journal entry is required to make to record event and transaction happens…

Q: Concord Corporation has the following accounts at December 31: Common Stock, $9 par, 4,700 shares…

A: The stockholders’ equity section indicates the overall total value of investment in the business.

Q: Enscoe Enterprises, Inc. (EEI) has 220,000 shares authorized, 170,000 shares issued, and 30,000…

A: Calculate the book value per share as follows: Book value per share = Total equity / Number of…

Q: What is the total amount recorded in the Common Stock account at the end of 20X2?   Select one:…

A: Total Shareholders' Equity  = Common Stock + Retained Earnings

Q: Enscoe Enterprises, Incorporated (EEI) has 360,000 shares authorized, 300,000 shares issued, and…

A: Shares, usually referred to as stocks, signify ownership in a business.  When a company decides to…

Q: Quickbux Co. issued and sold 1,000 shares of common stock, with a par value of $5, for $12 per…

A: Shareholders' equity includes common stock, preferred stock, paid-in capital in excess of par, and…

Q: The stockholders’ equity section of O’Vear Corporation consists of Common stock ($10 par)…

A: The dividend is the amount of income earned by the stockholders in return for their investment. It…

Q: A company's board of directors declared a $0.50 per share cash dividend on its $3 par common stock.…

A: Number of shares=Issued shares-Treasury stock=18,000-5,000=13,000

Q: Nexis Corp. issues 1,960 shares of $11 par value common stock at $15 per share. When the transaction…

A: A journal entry is the recording of financial transactions of business entity in the books of…

Q: Netpass Company has 600,000 shares of common stock authorized, 510,000 shares issued, and 240,000…

A: Dividend is paid on the shares outstanding. Shares outstanding = Shares issued - Treasury shares…

Q: Torres Inc. issues 40,000 shares of its $0.05 par value common stock for $70 per share. The journal…

A: To record issue of shares at a value more than par value, common stock will be credited by par value…

Q: Using the following accounts and balances, prepare the Stockholders' Equity section of the balance…

A: Formula: Total paid in capital = Common stock issued at PAR + Excess over PAR.

Q: Ehrlich Co. is authorized to issue 1,000,000 of it's $5 par value common stock. 1. Prepare entries…

A: The journal entries are prepared to record the transactions on regular basis. The temporary account…

Q: How much will you have in 2 YEARS if you save $100 each MONTH and your account earns 4% interest PER…

A: N = 24, PV = 0 rate = 4%/12 PMT = 100 use FV function in Excel with type as 0

Q: MH Corp. was organized on January 1, 20X7. The firm was authorized to issue 100,000 shares of $5 par…

A: Stockholder's Equity -  It is the amounts in a business after settled of all liabilities of the…

Q: Enscoe Enterprises, Incorporated (EEI) has 240,000 shares authorized, 210,000 shares issued, and…

A: The worth of a company's stock seems to be an essential indicator that investors, experts, and other…

Q: Journalize the entries to record the transactions. Identify each entry by letter.

A: Workings :F.Cash Dividend Payable(No of shares)Preference stockCommon stockBalance, opening80,000…

Q: Prepare the journal entry to record Jevonte Company's issuance of 36,000 shares of its common stock…

A: Journal entry :— It is an act of recording transaction in books of account when it is occurred.…

Q: Balmor Corporation's balance sheet showed the following data about its $0.01 par value common stock:…

A: Introduction Treasury stock: Treasury stock is the company’s its own stock which company purchases…

Q: Gotham Inc. issued 10,000 shares of its $2 par value common stock for $25 per share. The journal…

A: Cash (10,000 x $25) 250,000     Common Stock (10,000 x $2)   20,000   Additional Paid-in Capital…

Q: On October 10, the stockholders' equity section of Sherman Systems appears as follows. Common…

A: The treasury stock includes the own shares of the company purchased from the shareholders. The…

Q: A company with 95,000 authorized shares of $7 par common stock issued 42,000 shares at $16.…

A: Dividends are calculated on Issued Shares fully paid up.In the given problem, Issued and fully paid…

Q: OM, Inc. was organized on January 1, 20X5. The firm was authorized to issue 1,000,000 shares of $3…

A: Total no. of common stock issued = 50,000 shares + 30,000 shares…

Q: The balance sheet caption for common stock is the following: Common stock, $2 par value, 2,070, 000…

A: Given,  Shares issued = 1,310,000 shares Shares outstanding = 1,050,000 shares Par value = $2 par…

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.