The stockholders’ equity accounts of Ayayai Corp. on January 1, 2017, were as follows. Preferred Stock (7%, $100 par noncumulative, 5,000 shares authorized) $300,000 Common Stock ($4 stated value, 300,000 shares authorized) 1,000,000 Paid-in Capital in Excess of Par Value—Preferred Stock 15,000 Paid-in Capital in Excess of Stated Value—Common Stock 480,000 Retained Earnings 691,500 Treasury Stock (5,000 common shares) 40,000 During 2017, the corporation had the following transactions and events pertaining to its stockholders’ equity. Feb. 1 Issued 5,000 shares of common stock for $35,000. Mar. 20 Purchased 1,000 additional shares of common treasury stock at $8 per share. Oct. 1 Declared a 7% cash dividend on preferred stock, payable November 1. Nov. 1 Paid the dividend declared on October 1. Dec. 1 Declared a $0.55 per share cash dividend to common stockholders of record on December 15, payable December 31, 2017. Dec. 31 Determined that net income for the year was $278,300. Paid the dividend declared on December 1.
The stockholders’ equity accounts of Ayayai Corp. on January 1, 2017, were as follows. Preferred Stock (7%, $100 par noncumulative, 5,000 shares authorized) $300,000 Common Stock ($4 stated value, 300,000 shares authorized) 1,000,000 Paid-in Capital in Excess of Par Value—Preferred Stock 15,000 Paid-in Capital in Excess of Stated Value—Common Stock 480,000 Retained Earnings 691,500 Treasury Stock (5,000 common shares) 40,000 During 2017, the corporation had the following transactions and events pertaining to its stockholders’ equity. Feb. 1 Issued 5,000 shares of common stock for $35,000. Mar. 20 Purchased 1,000 additional shares of common treasury stock at $8 per share. Oct. 1 Declared a 7% cash dividend on preferred stock, payable November 1. Nov. 1 Paid the dividend declared on October 1. Dec. 1 Declared a $0.55 per share cash dividend to common stockholders of record on December 15, payable December 31, 2017. Dec. 31 Determined that net income for the year was $278,300. Paid the dividend declared on December 1.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question is for a partial balance sheet (Stockholder) information as follows:
The
| $300,000 | ||
| Common Stock ($4 stated value, 300,000 shares authorized) | 1,000,000 | |
| Paid-in Capital in Excess of Par Value—Preferred Stock | 15,000 | |
| Paid-in Capital in Excess of Stated Value—Common Stock | 480,000 | |
| 691,500 | ||
| 40,000 |
During 2017, the corporation had the following transactions and events pertaining to its stockholders’ equity.
| Feb. | 1 | Issued 5,000 shares of common stock for $35,000. | |
| Mar. | 20 | Purchased 1,000 additional shares of common treasury stock at $8 per share. | |
| Oct. | 1 | Declared a 7% cash dividend on preferred stock, payable November 1. | |
| Nov. | 1 | Paid the dividend declared on October 1. | |
| Dec. | 1 | Declared a $0.55 per share cash dividend to common stockholders of record on December 15, payable December 31, 2017. | |
| Dec. | 31 | Determined that net income for the year was $278,300. Paid the dividend declared on December 1. |
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