Winnie Corporation has the following capital structure at the beginning of 2022: 5% Preferred stock, $50 par value, 50,000 shares authorized; 10,000 shares issued and outstanding $500,000Common stock, $5 par value, 100,000 shares authorized; 50,000 shares issued and outstanding 250,000Paid-in capital in excess of par 340,000 Total paid-in capital 1,090,000Retained earnings 460,000Total stockholders' equity $1,550,000 Required: Prepare journal entries for the following transactions which occurred consecutively throughout 2022.A total cash dividend of $60,000 was declared to stockholders of record.Bought 4,000 shares of treasury stock at $22 per share.Resold 1,500 treasury shares at $23 per share.Resold 1,000 shares of treasury stock at $19 per share. Prepare the stockholders’ equity section of the balance sheet at December 31, 2022. Assume that net income for the year was $165,000.

Shareholders' equity is the remaining stake a company's shareholders have in its assets after its…

Answered: Winnie Corporation has the following…

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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Question

Winnie Corporation has the following capital structure at the beginning of 2022:

5% Preferred stock, $50 par value, 50,000
shares authorized; 10,000 shares issued
and outstanding		$500,000
Common stock, $5 par value, 100,000
shares authorized; 50,000 shares issued
and outstanding		250,000
Paid-in capital in excess of par		340,000

Total paid-in capital		1,090,000
Retained earnings		460,000
Total stockholders' equity		$1,550,000

Required:

Prepare journal entries for the following transactions which occurred consecutively throughout 2022.

A total cash dividend of $60,000 was declared to stockholders of record.
Bought 4,000 shares of treasury stock at $22 per share.
Resold 1,500 treasury shares at $23 per share.
Resold 1,000 shares of treasury stock at $19 per share.

Prepare the stockholders’ equity section of the balance sheet at December 31, 2022. Assume that net income for the year was $165,000.

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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