United Resources Company obtained a charter from the state in January of this year. The charter authorized 211,000 shares ofcommon stock with a par value of $1. During the year, the company earned $477,000. Also during the year, the following selectedtransactions occurred in the order given:a. Sold 98,000 shares of the common stock in an initial public offering for $18 per share.b. Repurchased 29,000 shares of the previously issued shares for $21 per share and is holding them as treasury stock.c. Resold 4,000 shares of treasury stock for $24 per share.Required:Prepare the stockholders' equity section of the balance sheet at the end of the year.Note: Amounts to be deducted should be indicated with a minus sign.Stockholders' equity:Contributed capital:UNITED RESOURCES COMPANYBalance Sheet (Partial)At December 31, This yearTotal contributed capitalTotal stockholders' equity

Balance Sheet :— It is one of the financial statement that shows list of final balances of assets,…

Answered: United Resources Company obtained a…

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 following is from the 2024 annual report of Kaufman Chemicals, Incorporated: Statements of Comprehensive Income Net income Other comprehensive income: Change in net unrealized gains on AFS investments, net of tax of $31, ($19), and $21 in 2024, 2023, and 2022, respectively Other Total comprehensive income ($ in millions) Shareholders' equity: Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive income Total shareholders' equity Accumulated other comprehensive income, 2023 Kaufman reports accumulated other comprehensive income in its balance sheet as a component of shareholders' equity as follows: Accumulated other comprehensive income, 2024 2024 $395 9,383 8,463 138 $ 18,379 ($ in millions) Years Ended December 31 2023 2024 2022 $818 $ 673 $988 44 (2) $ 1,030 2023 (27) (3) $788 $395 9,383 7,907 96 $ 17,781 Required: 3. From the information provided, determine how Kaufman calculated the $138 million accumulated other comprehensive income in 2024.…
The securities owned by Jane Company were held as a long-term investment. During the currentyear, the following transactions occurred:Jan. 1 Purchased 15,000 shares of ABC Company at P70 per share.May 1 Purchased 8,000 shares of XYZ Corporation for P660,000.Apr 1 Received a cash dividend of P6 per share from ABC Company.July 1 Received a share for a share dividend from XYZ Corporation.Aug 1 Purchased 10,000 shares of GHI Enterprises at P75 each.Oct 1 Received a cash dividend of P6 per share from ABC Company.Oct 31 XYZ Corporation offered shareholders rights to subscribe to one new share for every tenrights tendered at P25. At the time of issuance, the market value of the right is P4. Sharerights are not accounted for separately.Nov 15 Exercised the XYZ Corporation’s share rights.Dec. 1 Sold 10,000 shares of XYZ Corporation at P35 per share. Use the FIFO approach indetermining the cost of the shares sold.Dec. 31 The fair values of the portfolio is as follows:ABC Company – P73 per…
Shelby Corporation was organized in January to operate an air-conditioning sales and service business. The charter issued by the state authorized the following capital stock: Common stock, $1 par value, 200,000 shares. Preferred stock, $10 par value, 6 percent, 50,000 shares. During January and February, the following stock transactions were completed: a. Collected $900,000 cash and issued 30,000 shares of common stock. b. Issued 20,000 shares of preferred stock at $40 per share; collected in cash. Net income for the year was $60,000; cash dividends declared and paid at year-end were $11,000. Required: Prepare the stockholders' equity section of the balance sheet at December 31. SHELBY CORPORATION Balance Sheet (Partial) At December 31 Stockholders' Equity Contributed Capital:
Quick Fix-It Corporation was organized at the beginning of this year to operate several car repair businesses in a large metropolitan area. The charter issued by the state authorized the following stock: Common stock, $20 par value, 98,100 shares authorized Preferred stock, $47 par value, 8 percent, 60,500 shares authorized During January and February of this year, the following stock transactions were completed: a. Sold 78,700 shares of common stock at $40 cash per share. b. Sold 20,000 shares of preferred stock at $77 cash per share. c. Repurchased 4,900 shares of common stock for $24 cash per share. Required: Net income for the year was $90,600; cash dividends declared and paid at year-end were $30,900. Prepare the stockholders' equity section of the balance sheet at the end of the year. Note: Amounts to be deducted should be indicated with a minus sign. Stockholders' equity: Contributed capital: QUICK FIX-IT CORPORATION Balance Sheet (Partial) At December 31
Moon Corporation received a charter that authorized the issuance of 119,000 shares of $7 par common stock and 19,000 shares of $75 par, 8 percent cumulative preferred stock. Moon Corporation completed the following transactions during its first two years of operation. Year 1 January 5 Sold 17,850 shares of the $7 par common stock for $9 per share. January 12 Sold 1,900 shares of the 8 percent preferred stock for $85 per share. April 5 Sold 23,800 shares of the $7 par common stock for $11 per share. December 31 During the year, earned $302,000 in cash revenue and paid $240,100 for cash operating expenses. December 31 Declared the cash dividend on the outstanding shares of preferred stock for Year 1. The dividend will be paid on February 15 to stockholders of record on January 10, Year 2. December 31 Closed the revenue, expense, and dividend accounts to the retained earnings account. Year 2 February 15 Paid the cash dividend declared on December 31, Year 1. March 3…
On-Line Learning Corporation obtained a charter at the beginning of this year that authorized 63,000 shares of no-par common stock and 30,000 shares of preferred stock, $19 par value. The corporation was organized by four individuals who purchased a total of 36,000 shares of the common stock. The remaining shares were to be sold to other individuals. During the year, the following selected transactions occurred: a. Collected $38 cash per share from the four organizers and issued 9,000 shares of common stock to each of them. b. Sold 10,000 shares of common stock to an outsider at $76 cash per share. c. Sold 11,000 shares of preferred stock at $57 cash per share. Required: 1. Prepare the journal entries for each of these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) I'm unsure why this answer is wrong.
Shelby Corporation was organized in January to operate an air-conditioning sales and service business. The charter issued by the state authorized the following capital stock: Common stock, $1 par value, 200o,000 shares. Preferred stock, $10 par value, 6 percent, 50,000 shares. During January and February, the following stock transactions were completed: led a. Collected $576,000 cash and issued 24,000 shares of common stock. b. Issued 17,000 shares of preferred stock at $34 per share; collected in cash. Net income for the year was $54,000; cash dividends declared and paid at year-end were $11,000. Required: Prepare the stockholders' equity section of the balance sheet at December 31. SHELBY CORPORATION Balance Sheet (Partial) At December 31 Stockholders' Equity Contributed Capital: 24 195,000 O Common Stock 29,000 Preferred Stock Additional Paid-In Capital, Common Stock 812,000 Additional Paid-In Capital, Preferred Stock 565,500 Total Contributed Capital 1,601,500 Retained Earnings…
Elroy Corporation repurchased 3,800 shares of its own stock for $55 per share. The stock has a par of $5 per share. A month later Elroy resold 950 shares of the treasury stock for $63 per share. Required: What is the balance of the Treasury Stock account after these transactions are recognized?
Texas Gun Stores Inc was authorized to issue 65,000 $5.50 non-cumulative preferred shares and an unlimited number of common shares. The company's fiscal year end is December 31. During 1975, their first year of operations, the following selected transactions occurred: January 3 Issued 11,000 common shares at $7.50 each for cash. May 3 8,000 preferred shares and 9,000 common shares were issued at $22.00 and $9.00 respectively, for cash. October 14 1,600 common shares were issued in exchange for a van with a fair value of $32,000. December 15 The company declared the required cash dividend on the preferred shares and a $2 per common share cash dividend payable on January 30, 1976 to the shareholders of record of January 20, 1976. Required: Prepare journal entries to record the above 1975 transactions.
Sun Corporation received a charter that authorized the issuance of 88,000 shares of $5 par common stock and 20,000 shares of $100 par, 6 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation: Year 1 Jan. 5 Sold 13,200 shares of the $5 par common stock for $7 per share. 12 Sold 2,000 shares of the 6 percent preferred stock for $110 per share. Apr. 5 Sold 17,600 shares of the $5 par common stock for $9 per share. Dec. 31 During the year, earned $316,300 in cash revenue and paid $237,300 for cash operating expenses. 31 Declared the cash dividend on the outstanding shares of preferred stock for Year 1. The dividend will be paid on February 15 to stockholders of record on January 10, Year 2. Year 2 Feb. 15 Paid the cash dividend declared on December 31, Year 1. Mar. 3 Sold 3,000 shares of the $100 par preferred stock for $120 per share. May 5 Purchased 400 shares of the…
Quick Fix-It Corporation was organized at the beginning of this year to operate several car repair businesses in a large metropolitan area. The charter issued by the state authorized the following stock: Common stock, $19 par value, 98,300 shares authorized Preferred stock, $45 par value, 8 percent, 60,400 shares authorized During January and February of this year, the following stock transactions were completed: Sold 78,800 shares of common stock at $38 cash per share. Sold 20,100 shares of preferred stock at $75 cash per share. Repurchased 4,000 shares of common stock for $20 cash per share. Required: Net income for the year was $90,600; cash dividends declared and paid at year-end were $30,200. Prepare the stockholders' equity section of the balance sheet at the end of the year. Note: Amounts to be deducted should be indicated with a minus sign. QUICK FIX-IT CORPORATION Balance Sheet (Partial) At December 31 Stockholders’ equity: Contributed capital:…

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