The equity section from the December 31, 2020 balance sheet of Kentucky Corporation appeared as follows: Contributed capital: Common shares, 51,500 shares authorized; 24,600 and 22,480 shares issued and outstanding, respectively. Retained earnings Required: 1. How many shares were outstanding on each of the cash dividend dates? Outstanding shares The following transactions occurred during 2021 (assume the retirements were the first ever recorded by Kentucky): Jan. 5 A $1.50 per share cash dividend was declared, and the date of record was five days later. Mar. 29 1,900 common shares were repurchased and retired at $28.20 per share. Apr. 5 A $8.70 per share cash dividend was declared, and the date of record was five days later. July 5 A $2.10 per share cash dividend was declared, and the date of record was five days later. July 31 A 20.00% share dividend was declared when the market value was $34.00 per share. Aug. 14 The share dividend was issued. Oct. 5 A $1.50 per share cash dividend was declared, and the date of record was five days later. Jan. 5 Profit Apr. 5 July 5 2. How much profit did the company earn during 2021? 2021 Oct. 5 KENTUCKY CORPORATION Statement of Changes in Equity For Your Endod Docomber 21 2021 2828 $717,500 $631,680 579,900 437,500 3. Prepare the statement of changes in equity for the year ended December 31, 2021. (Deductible values should be indicated by a minus sign.)
The equity section from the December 31, 2020 balance sheet of Kentucky Corporation appeared as follows: Contributed capital: Common shares, 51,500 shares authorized; 24,600 and 22,480 shares issued and outstanding, respectively. Retained earnings Required: 1. How many shares were outstanding on each of the cash dividend dates? Outstanding shares The following transactions occurred during 2021 (assume the retirements were the first ever recorded by Kentucky): Jan. 5 A $1.50 per share cash dividend was declared, and the date of record was five days later. Mar. 29 1,900 common shares were repurchased and retired at $28.20 per share. Apr. 5 A $8.70 per share cash dividend was declared, and the date of record was five days later. July 5 A $2.10 per share cash dividend was declared, and the date of record was five days later. July 31 A 20.00% share dividend was declared when the market value was $34.00 per share. Aug. 14 The share dividend was issued. Oct. 5 A $1.50 per share cash dividend was declared, and the date of record was five days later. Jan. 5 Profit Apr. 5 July 5 2. How much profit did the company earn during 2021? 2021 Oct. 5 KENTUCKY CORPORATION Statement of Changes in Equity For Your Endod Docomber 21 2021 2828 $717,500 $631,680 579,900 437,500 3. Prepare the statement of changes in equity for the year ended December 31, 2021. (Deductible values should be indicated by a minus sign.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The equity section from the December 31, 2020 balance sheet of Kentucky Corporation appeared as follows:
Contributed capital:
Common shares, 51,500 shares authorized; 24,600 and 22,400 shares
issued and outstanding, respectively.
Retained earnings
Required:
1. How many shares were outstanding on each of the cash dividend dates?
Outstanding shares
The following transactions occurred during 2021 (assume the retirements were the first ever recorded by Kentucky):
Jan. 5 A $1.50 per share cash dividend was declared, and the date of record was five days later.
Mar. 28 1,908 common shares were repurchased and retired at $28.20 per share.
Apr. 5 A $0.70 per share cash dividend was declared, and the date of record was five days later.
July 5 A $2.10 per share cash dividend was declared, and the date of record was five days later.
July 31 A 20.00% share dividend was declared when the market value was $34.00 per share.
Aug. 14 The share dividend was issued.
Oct. 5 A $1.50 per share cash dividend was declared, and the date of record was five days later.
Profit
2. How much profit did the company earn during 2021?
Jan. 5 Apr. 5
Balance, January 1
Balance, December 31
July 5
KENTUCKY CORPORATION
Statement of Changes in Equity
For Year Ended December 31, 2021
Retained
Earnings
Common
Shares
3. Prepare the statement of changes in equity for the year ended December 31, 2021. (Deductible values should be indicated by a
minus sign.)
$
Oct. 5
$
Total Equity
$
$
$
$
$
0 $
0
0
2021
0
2020
0
0
0
$717,500 $631,680
579,900 437,500
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