The shareholders' equity section of Flores Design Company's December 31, 2018, balance sheet appeared as follows: Contributed Capital: Preferred stock, $100 par (10,000 shares authorized, 1,250 shares issued) $125,000 Additional paid-in capital on preferred stock 55,000 Common stock, $10 par (60,000 shares authorized, 15,000 shares issued) 150,000 Additional paid-in capital on common stock 105,000 Total contributed capital $435,000 Retained earnings 78,000 Contributed capital and retained earnings $513,000 Less: Treasury stock (300 shares of common at $14 per share) (4,200) Total Shareholders' Equity $508,800 During 2019, the company entered into the following transactions affecting shareholders' equity: Issued 250 shares of preferred stock at $164 per share. Issued 3,000 shares of common stock at $17 per share. Reacquired 200 of its own common shares as treasury stock for $15 per share. Reissued 250 shares of treasury stock at $17 per share (FIFO basis). Net income for 2019 was $46,500. Dividends of $25,000 were distribute. Prepare a statement of shareholders' equity for the year ended December 31, 2019, for Flores. If an amount is zero, enter "0". Compute the return on shareholders' equity for 2019

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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The shareholders' equity section of Flores Design Company's December 31, 2018, balance sheet appeared as follows:

Contributed Capital:
Preferred stock, $100 par (10,000 shares authorized, 1,250 shares issued)	$125,000
Additional paid-in capital on preferred stock	55,000
Common stock, $10 par (60,000 shares authorized, 15,000 shares issued)	150,000
Additional paid-in capital on common stock	105,000
Total contributed capital	$435,000
Retained earnings	78,000
Contributed capital and retained earnings	$513,000
Less: Treasury stock (300 shares of common at $14 per share)	(4,200)
Total Shareholders' Equity	$508,800

During 2019, the company entered into the following transactions affecting shareholders' equity:

Issued 250 shares of preferred stock at $164 per share.
Issued 3,000 shares of common stock at $17 per share.
Reacquired 200 of its own common shares as treasury stock for $15 per share.
Reissued 250 shares of treasury stock at $17 per share (FIFO basis).
Net income for 2019 was $46,500. Dividends of $25,000 were distribute.

Prepare a statement of shareholders' equity for the year ended December 31, 2019, for Flores. If an amount is zero, enter "0".
Compute the return on shareholders' equity for 2019

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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