The capital structure of the SE HAPPY corporation as of January 1, 20x1 was: Common shares, par value $25, authorized 20,000, issued and outstanding 8,000 Additional Capital Above Par Value - Common Stock Retained earnings The following transactions occurred during the year 20x1: • On May 4, he repurchased 300 shares paying $70 each for them. • On June 5, he repurchased 800 shares paying $55 each for them. . • On August 15, he reissued (sold) 600 of his portfolio shares at $65 each. • On November 20, it reissued 200 of its portfolio shares at $40 each. Instructions: $200,000 120,000 130,000 1. Using the cost method, prepare the entries to record the repurchase and reissue of the shares held.

The capital structure of the SE HAPPY corporation as of January 1, 20x1 was: Common shares, par value $25, authorized 20,000, issued and outstanding 8,000 Additional Capital Above Par Value - Common Stock Retained earnings The following transactions occurred during the year 20x1: • On May 4, he repurchased 300 shares paying $70 each for them. • On June 5, he repurchased 800 shares paying $55 each for them. . • On August 15, he reissued (sold) 600 of his portfolio shares at $65 each. • On November 20, it reissued 200 of its portfolio shares at $40 each. Instructions: $200,000 120,000 130,000 1. Using the cost method, prepare the entries to record the repurchase and reissue of the shares held.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The outstanding capital stock of Cleary Corporation consists of 2,000 shares of $100 par value, 8% preferred, and 5,000 shares of $50 par value common. Assuming that the company has retained earnings of $90,000, all of which is to be paid out in dividends, and that preferred dividends were not paid during the 2 years preceding the current year, state how much each class of stock should receive under each of the following conditions. a. The preferred stock is noncumulative and nonparticipating. (Round answers to 0 decimal places, e.g. 38,487.) $ $ Preferred b. The preferred stock is cumulative and nonparticipating. (Round answers to 0 decimal places, e.g. 38,487.) 65 Preferred $ Preferred $ Common c. The preferred stock is cumulative and participating. (Round the rate of participation to 4 decimal places, e.g. 1.4278%. Round answers to O decimal places, e.g. 38,487.) $ Common Common
Super Co is a corporation with common stock. They have an investor who paid $1,000 for 500 of their $1 par stock. How would this be reflected in the equity section of the balance sheet? O Increase of Common Stock for $1,000 Increase of Common Stock for $500 and Additional Paid in Capital for $500 O O Increase of Common Stock for $500 Increase of Additional Paid in Capital for $1,000 O
The outstanding share capital of Flounder Corporation consists of 2,000 shares of $100 par value, 9% preference, and 5,200 shares of $50 par value ordinary. Assuming that the company has retained earnings of $82,500, all of which is to be paid out in dividends, and that preference dividends were not paid during the 2 years preceding the current year, determine how much each class of shares should receive under each of the following conditions. (a) The preference shares are non-cumulative and non-participating. (Round answers to O decimal places, e.g. 38,487.) $ $ Preference (b) The preference shares are cumulative and non-participating. (Round answers to O decimal places, e.g. 38,487.) $ Preference $ Preference $ Ordinary (c) The preference shares are cumulative and participating. (Round the rate of participation to 4 decimal places, e.g. 1.4278%. Round answers to O decimal places, e.g. 38,487.) $ Ordinary Ordinary
The outstanding capital stock of Oriole Corporation consists of 1,900 shares of $100 par value, 8% preferred, and 4,700 shares of $50 par value common. Assuming that the company has retained earnings of $89,500, all of which is to be paid out in dividends, and that preferred dividends were not paid during the 2 years preceding the current year, state how much each class of stock should receive under each of the following conditions. a. The preferred stock is noncumulative and nonparticipating. (Round answers to O decimal places, e.g. 38,487.) Preferred b. The preferred stock is cumulative and nonparticipating. (Round answers to O decimal places, e.g. 38,487.) EA Preferred Common c. The preferred stock is cumulative and participating. (Round the rate of participation to 4 decimal places, e.g.1.4278%. Round answers to O decimal places, e.g. 38,487.) Preferred LA Common Common
Dengar
P Co. issued 6,000 shares of its common stock, valued at $300,000, to the former shareholders of S Company two years after S Company was acquired in a stock acquisition. The additional shares were issued because P Company agreed to issue additional shares of common stock if the average post combination earnings over the next two years exceeded $600,000. P Company balance sheet will result a(n): Increase in common stock Decrease in cash Increase in cash O Increase in retained earnings P Company acquired the net assets of -> ... 37
The following information was taken from the books and records of Cullumber, Inc.: 1. Net Income $391,400 2. Capital structure: a. Convertible 6% bonds. Each of the 290, $1,000 bonds is convertible into 50 shares of common stock at the present date and for the next 10 years. 290,000 b. $10 par common stock, 190,000 shares issued and outstanding during the entire year. 1,900,000 c. Stock warrants outstanding to buy 15,040 shares of common stock at $20 per share. 3. Other information: a. Bonds converted during the year None b. Income tax rate 30% c. Convertible debt was outstanding the entire year d. Average market price per share of common stock during the year $32 e. Warrants were outstanding the entire year f. Warrants exercised during the year Compute diluted earnings per share