WMosquito Waters Resorts has been in business since 1998. The stockholders' equity sectionof Mosquito's balance sheet on January 1, 2004 is as follows:Common Stock (Par value $6.00 per share; 50,000shanas authorizad; 25,000 shares issued andoutstanding)Additional Paldin Capital on Common StockPreferred Stock (Par valua $15.00 per share;5,000 shares authorized; 3,000 shares lesuad andoutstanding)Additional Paid-in Capital on Preferred StockRetained EamingsTotal Stockholders' EquityStockholders'Equity Section as ofJanuary 1, 2004125,000600,00045,0005,000455,0001,230,000Required:1) Prepare the journal entries for the following three transactions in the boxes below (dateyour journal entries):a) On July 15, 2004, Mosquito issues 500 shares of its common stock, receiving $12.00 pershare. =b) First entry on March 31, 2004, Mosquito purchased 5,000 shares of its common stockin the open market for $180,000.Second entry on November 15, 2004, Mosquito reissued (or sold) 2,500 of these shares for$40 per share.c) On December 31, 2004, Mosquito declares annual dividends on its common stock.Dividends are to be paid on the shares of common stock outstanding on the date ofdeclaration. Each share of common stock will receive $2.00 a share. The dividends will bepaid on January 18, 2005.2. Assume net income for 2004 was $310,000. Prepare the Stockholders' Equity section ofMosquito's balance sheet as of December 31, 2004 in the box below.

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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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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 220,000 shares of common stock at $14, receiving cash. b. Issued 12,000 shares of preferred 2% stock at $110. c. Purchased 160,000 shares of treasury common for $10 per share. d. Sold 105,000 shares of treasury common for $16 per share. e. Sold 40,000 shares of treasury common for $8 per share. f. Declared cash dividends of $2.00 per share on preferred stock and $0.08 per share on…
Advanced Life Co. is an HMO for businesses in the Albuquerque area. The following account balances appear on the balance sheet of Advanced Life Co.: Common stock (900,000 shares authorized; 460,000 shares issued), $5 par, $2,300,000; Paid-in capital in excess of par—common stock, $900,000; and Retained earnings, $33,595,000. The board of directors declared a 1% stock dividend when the market price of the stock was $13 a share. Advanced Life Co. reported no income or loss for the current year. Required: a. Journalize the entries to record (1) the declaration of the dividend on December 1, capitalizing an amount equal to market value, and (2) the issuance of the stock certificates on December 31. b. Determine the following amounts before the stock dividend was declared: (1) total paid-in capital, (2) total retained earnings, and (3) total stockholders’ equity. c. Determine the following amounts after the stock dividend was declared and closing entries were recorded at the end of…
blue Bay Logistics Ltd.'s shareholders' equity accounts were as follows at the beginning of the current fiscal year, April 1, 2009:$6-cumulative preferred shares (20,000 shares issued) $1,800,000Common shares (500,000 shares issued) 3,750,000Contributed capital-reacquisition of common shares 50,000Retained earnings 1,500,000Total shareholders' equity $7,100,000During the year, the following selected transactions occurred:June 1 Reacquired 22,800 common shares for $9 per share.July 1 Issued 52,000 common shares for $10 per share.Feb. 28 Declared the annual preferred dividend to shareholders of record on March 12, payable on April 1.Mar. 31 Net earnings for the year ended March 31, 2009, were $1,021,350.Calculate the weighted average number of common shares for the year.
Following is the stockholders' equity section from ABC Company's balance sheet as of Dec 31, Yr 1: STOCKHOLDERS' EQUITY Common stock: $0.45 par value, authorized 600,000 shares; 175,000 shares issued: $78,750 Additional paid-in capital: 532,000 Retained earnings: 79,500 Treasury stock: (180,000) Total stockholder's equity: $510,250 a) At the time the common stock was sold, what was the cost of each common stock sold? b) Compute the average price at which ABC Company issued its common stock shares: c) Compute the number of common stock shares outstanding as of Dec 31, Yr 1.
Topic: Stockholders’ Equity Section of the Balance Sheet The following summaries for 1Maryland Service, Inc., and 2Grapone, Co., provide the information needed to prepare the stockholders’ equity section of each company’s balance sheet. The two companies are independent. Maryland is authorized to issue 44,000 shares of $1 par common stock. All the stock was issued at $11 per share. The company incurred net losses of $47,000 in 2009 and $15,000 in 2010. It earned net income of $32,000 in 2011 and $178,000 in 2012. The company declared no dividends during the four-year period. 2. Grapone’s charter authorizes the issuance of 70,000 shares of 5%, $14 par preferred stock and 470,000 shares of no-par common stock. Grapone issued 1,400 shares of the preferred stock at $14 per share. It issued 130,000 shares of the common stock for $260,000. The company’s retained earnings balance at the beginning of 2012 was $60,000. Net income for 2012 was $98,000, and the company declared the specified…
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Item Nos. 12 and 13 are based on the following information:ddet01oM mat Bravo Company was organized at the beginning of this year with dones authorized capital of 100,000 ordinary shares with a par value of P 200 per hatini share. During the year, Bravo had the following transactions affecting the shareholders' equity: 01 Fon Jan. 10 Issued 25,000 shares at P 220 per share. .000 Mar. 25 Issued 1,000 shares for legal services when the fair value was P 240 per share. dw.or Sep. 30 Issued 5,000 shares for a tract of land when the fair value was P 260 per share.
The following equity balances were reported for HariMahesh Inc. on December 31, 1999: Common shares, 60,000 shares issued $1,480,000Retained earnings 225 600Total equity $ 1 705 600 On January 19, 2000 the board of directors declared a 5% stock dividend to the shareholders of record on February 03 to be distributed on February 19. The market price of the shares on January 19 was $6.00. On July 9 , 2000 the board of directors declared a 2:1 stock split. Required: a. Prepare the journal entries required for the above transactions. b. What is the total number of common shares issued and outstanding at December 31, 2000? (Show your calculations)
On January 1, 2010, the accounts of Mac Corporation showed the following: Common stock, par SI, authorized 100.000 shares Capital in excess of par value ($2 per share) Retained carnings 60,000 140,000 During 2010, the following transactions occurred affecting stockholders' equity (in the order given) A B. C. D. Issued a 100° stock dividend when the market price was at $5 per share. Purchased treasury stock, 1.000 shares at a total cost of $8.000. Declared and paid cash dividends. SI5.000. Net income for 2010. S25.000
.
Agri Gold Ltd. began operations on January 1, 1983 by issuing 54,000 common shares at $13 per share and 26,000 $8 cumulative preferred shares at $20 per share. During 1983 Agri Gold Ltd issued an additional 8,000 common shares at $11 per share and 2,000 preferred shares at $30 per share. 2019 profit was $355,000 and the Board declared $81,000 in dividends. Required: Prepare the Shareholders' Equity section of Agri Gold Ltds Balance Sheet at December 31, 1983.
On October 10, the stockholders’ equity section of Sherman Systems appears as follows. Common stock–$10 par value, 86,000 shares authorized, issued, and outstanding $ 860,000 Paid-in capital in excess of par value, common stock 286,000 Retained earnings 976,000 Total stockholders’ equity $ 2,122,000 Prepare journal entries to record the following transactions for Sherman Systems. Purchased 6,400 shares of its own common stock at $39 per share on October 11. Sold 1,350 treasury shares on November 1 for $45.

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