The following information pertains to JAE Corporation at January 1, Year 1:Common stock, $9 par, 11,000 shares authorized, 2,200shares issued and outstandingPaid-in capital in excess of par, common stockRetained earnings$19,80012, 10068,000JAE Corporation completed the following transactions during Year 1:1. Issued 950 shares of $9 par common stock for $31 per share.2. Repurchased 160 shares of its own common stock for $28 per share.3. Resold 50 shares of treasury stock for $29 per share.Required:a. How many shares of common stock were outstanding at the end of the period?b. How many shares. commonissued at the end of the eriod?hadc. Organize the transactions data in accounts under the accounting equation.d. Prepare the stockholders' equity section of the balance sheet reflecting these transactions.

1. Calculate the total number of outstanding shares at the end of the period. Beginning number of…

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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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Halverstein Company's outstanding stock consists of 11,900 shares of cumulative 5% preferred stock with a $10 par value and 5,100 shares of common stock with a $1 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends. Dividend Declared Year 1 $ Year 2 $ Year 3 $ 0 10,200 43,000 The amount of dividends paid to preferred and common shareholders in Year 2 is:
Upperchurch Company reports the following components of stockholders' equity on January 1. Common stock-$10 par value, 130,e00 shares authorized, 50,0e0 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings $ 500,000 75,000 410,e00 Total stockholders' equity $ 985,000 During the year, the following transactions affected its stockholders' equity accounts. 2 Purchased 5,eee shares of its own stock at $23 cash per share. 5 Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockholders of record. 28 Paid the dividend declared on January 5. 6 Sold 1,98e of its treasury shares at $27 cash per share. 22 Sold 3,100e of its treasury shares at $20 cash per share. 5 Directors declared a $2 per share cash dividend payable on October 28 to the September 25 stockholders of record. Jan. Jan. Feb. July Aug. Sept. 28 Paid the dividend declared on September 5. 31 Closed the $214, eee credit balance (from net income) in…
Perry Corporation was established on January 1, Year 1 when it issued 21,700 shares of $50 par, 5 percent, cumulative preferred stock and 64,000 shares of $10 par common stock. The company's earnings history is as follows: Year 1 Year 2 Year 3 $116,840 Net loss $195,000 Net income $205,000 Net income The corporation paid the maximum amount of dividends possible in each year of operation. The dividend paid to common stockholders at the end of Year 3 is Multiple Choice zero. $54,250. $108,500. $120,410.
The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current year: Preferred 2% Stock, $100 par (100,000 shares authorized, 80,000 shares issued) $8,000,000 Paid-In Capital in Excess of Par—Preferred Stock 440,000 Common Stock, $5 par (5,000,000 shares authorized, 4,000,000 shares issued) 20,000,000 Paid-In Capital in Excess of Par—Common Stock 2,280,000 Retained Earnings 115,400,000 During the year, the corporation completed a number of transactions affecting the stockholders’ equity. They are summarized as follows: a. Issued 200,000 shares of common stock at $12, receiving cash. b. Issued 8,000 shares of preferred 2% stock at $115. c. Purchased 175,000 shares of treasury common for $10 per share. d. Sold 110,000 shares of treasury common for $14 per share. e. Sold 30,000 shares of treasury common for $8 per share. f. Declared cash dividends of $1.25 per share on preferred stock and $0.08 per share on…
The annual report for Sneer Corporation disclosed that the company declared and paid preferred dividends in the amount of $170,000 in the current year. It also declared and paid dividends on common stock in the amount of $2.70 per share. During the current year, Sneer had 1 million common shares authorized; 370,000 shares had been issued; and 163,000 shares were in treasury stock. The opening balance in Retained Earnings was $870,000 and Net Income for the current year was $370,000. Required: 1. Prepare journal entries to record the declaration, and payment, of dividends on (a) preferred and (b) common stock. 2. Using the information given above, prepare a statement of retained earnings for the year ended December 31. 3. Prepare a journal entry to close the dividends account.
Sweet Company’s outstanding stock consists of 1,800 shares of cumulative 5% preferred stock with a $100 par value and 11,800 shares of common stock with a $10 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends. Dividends Declared & Paid Year 1 $ 3,800 Year 2 $ 7,800 Year 3 $ 41,000 The total amount of dividends paid to preferred and common shareholders over the three-year period is:
Leprechan Inc. had the following stock and convertible securities outstanding on January 1: ● 720,000 shares of $2 par common stock ● 13,000 shares of 6% $80 par cumulative convertible preferred stock ● Stock options for the purchase of 90,000 common shares at $25 per share The following stock transactions occurred during the year: ● March 1: purchased 60,000 treasury shares with cash ● June 1: stock split (2:1) ● November 1: issued an additional 240,000 shares of common stock for cash The preferred stock is convertible into 200,000 shares of common stock (after adjustment for the stock split.) The average price of the common stock during the year was $30 per share. None of the securities were converted during the year. Net income was $2,500,000, and the company’s tax rate is 40%. Required: Calculate basic earnings per share: ___________ Calculate fully diluted earnings per share: ___________
Brice Company completed the following transactions in Year 1, the first year of operation: Issued 44,000 shares of no-par common stock for $10 per share. Issued 8,400 shares of $20 par, 8 percent, preferred stock for $20 per share. Paid a cash dividend of $13,440 to preferred shareholders. Issued a 10 percent stock dividend on no-par common stock. The market value at the dividend declaration date was $12 per share. Later that year, issued a 2-for-1 split on the shares of outstanding common stock. The market price of the stock at that time was $50 per share. Produced $160,000 of cash revenues and incurred $76,000 of cash operating expenses. Closed the revenue, expense, and dividend accounts to retained earnings. b. Record the Year 1 transactions in general journal form and post them to T-accounts.
The following information pertains to Rising Suns Corporation at January 1, Year 2 Common stock, $20 par, 50,000 shares authorized, 12,400 shares issued and outstanding Paid-in capital in excess of par, common stock Retained earnings Rising Suns completed the following events during Year 2: 1. Issued 5,240 shares of $20 par common stock for $30 per share. 2. Repurchased 1,240 shares of its own common stock for $25 per share. 3. Resold 620 shares of treasury stock for $30 per share. Required: Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. More specifically, record the amounts of the events into the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed. Event Number…
Crane Company's balance sheet reported the following: Capital stock outstanding, 4,000 shares, par $ 30 per share $ 120,000 Paid-in capital in excess of par 75,000 Retained earnings 90,000 The following transactions occurred this year: (a) Purchased 180 shares of capital stock to be held as treasury stock, paying $ 55 per share. (b) Sold 140 of the shares of treasury stock at $ 60 per share. (c) Sold the remaining shares of treasury stock at $ 45 per share. Prepare the journal entry for these transactions under the cost method of accounting for treasury stock. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No. Account Titles and Explanation Debit Credit (a) (b) (c)
Sweet Company's outstanding stock consists of 1,550 shares of cumulative 5% preferred stock with a $100 par value and 15,500 shares of common stock with a $10 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends. Dividends Declared & Paid $ 3,100 $ 9,300 $49,600 Year 1 Year 2 Year 3 The amount of dividends paid to preferred and common shareholders in year 3 is: Multiple Choice $10,850 preferred; $38,750 common. $7,750 preferred; $41,850 common. $15,500 preferred; $34,100 common. $49,600 preferred; $0 common.
At the beginning of 20X1, the accounting records of Friends Corp. reported the following: $ 228,750 Preferred shares, 7,500 shares outstanding, no-par Common shares, 181,400 shares outstanding, no-par Contributed capital on common share retirement Retained earnings 477,082 111,100 555,500 During the year, the company acquired and retired shares, while other shares were issued: 15 March 25,400 common shares bought and retired at $4 per share 16 March 4,300 preferred shares bought and retired at $32.90 per share 20 May 9,500 common shares bought and retired at $1 per share 25 May 1,900 preferred shares bought and retired at $18.30 per share 30 May 11,000 common shares issued at $10.30 per share 15 Nov. 5,100 common shares bought and retired at $30 per share

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