Your answer is partially correct. Try again. Novak Company has two classes of capital stock outstanding: 9%, $20 par preferred and $5 par common. At December 31, 2017, the following accounts were included in stockholders' equity. $ 2,822,000 9,895,000 Preferred Stock, 141,100 shares Common Stock, 1,979,000 shares Paid-in Capital in Excess of Par-Preferred Stock Paid-in Capital in Excess of Par-Common Stock Retained Earnings Feb. 1 June 1 July 1 Sept. 15 Dec. 31 194,000 The following transactions affected stockholders' equity during 2018. Jan. 1 27,400 shares of preferred stock issued at $22 per share. 50,700 shares of common stock issued at $22 per share. 2-for-1 stock split (par value reduced to $2.50). 27,600 shares of common treasury stock purchased at $10 per share. Novak uses the cost method. 9,500 shares of treasury stock reissued at $12 per share. The preferred dividend is declared, and a common dividend of 48¢ per share is declared. Net income is $2,134,000. Dec. 31 26,547,000 4,497,000 Prepare the stockholders' equity section for Novak Company at December 31, 2018.
Your answer is partially correct. Try again. Novak Company has two classes of capital stock outstanding: 9%, $20 par preferred and $5 par common. At December 31, 2017, the following accounts were included in stockholders' equity. $ 2,822,000 9,895,000 Preferred Stock, 141,100 shares Common Stock, 1,979,000 shares Paid-in Capital in Excess of Par-Preferred Stock Paid-in Capital in Excess of Par-Common Stock Retained Earnings Feb. 1 June 1 July 1 Sept. 15 Dec. 31 194,000 The following transactions affected stockholders' equity during 2018. Jan. 1 27,400 shares of preferred stock issued at $22 per share. 50,700 shares of common stock issued at $22 per share. 2-for-1 stock split (par value reduced to $2.50). 27,600 shares of common treasury stock purchased at $10 per share. Novak uses the cost method. 9,500 shares of treasury stock reissued at $12 per share. The preferred dividend is declared, and a common dividend of 48¢ per share is declared. Net income is $2,134,000. Dec. 31 26,547,000 4,497,000 Prepare the stockholders' equity section for Novak Company at December 31, 2018.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Novak Company has two classes of capital stock outstanding: 9%, $20 par preferred and $5 par common. At December 31,
2017, the following accounts were included in stockholders' equity.
$
2,822,000
9,895,000
Preferred Stock, 141,100 shares
Common Stock, 1,979,000 shares
Paid-in Capital in Excess of Par-Preferred
Stock
Paid-in Capital in Excess of Par-Common
Stock
Retained Earnings
194,000
26,547,000
4,497,000
The following transactions affected stockholders' equity during 2018.
Jan. 1
27,400 shares of preferred stock issued at $22 per share.
Feb. 1
50,700 shares of common stock issued at $22 per share.
June 1
2-for-1 stock split (par value reduced to $2.50).
July 1
27,600 shares of common treasury stock purchased at $10 per share. Novak uses the cost method.
Sept. 15
9,500 shares of treasury stock reissued at $12 per share.
Dec. 31
The preferred dividend is declared, and a common dividend of 48¢ per share is declared.
Dec. 31
Net income is $2,134,000.
Prepare the stockholders' equity section for Novak Company at December 31, 2018.
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