(Learning Objective 6: Report stockholders’ equity) Lima Corp. has the following stockholders’ equity information: Lima’s charter authorizes the company to issue 4,000 shares of 11% preferred stock with par value of $200 and 700,000 shares of no-par common stock. The company issued 1,000 shares of the preferred stock at $200 per share. It issued 350,000 shares of the common stock for a total of $512,000. The company’s retained earnings balance at the beginning of 2018 was $75,000, and net income for the year was $100,000. During 2018, Lima declared the specified dividend on preferred and a $0.10 per-share dividend on common. Preferred dividends for 2017 were in arrears. Requirement 1. Prepare the stockholders’ equity section of Lima Corp.’s balance sheet at December 31, 2018. Show the computation of all amounts. Journal entries are not required.
(Learning Objective 6: Report stockholders’ equity) Lima Corp. has the following stockholders’ equity information: Lima’s charter authorizes the company to issue 4,000 shares of 11% preferred stock with par value of $200 and 700,000 shares of no-par common stock. The company issued 1,000 shares of the preferred stock at $200 per share. It issued 350,000 shares of the common stock for a total of $512,000. The company’s retained earnings balance at the beginning of 2018 was $75,000, and net income for the year was $100,000. During 2018, Lima declared the specified dividend on preferred and a $0.10 per-share dividend on common. Preferred dividends for 2017 were in arrears. Requirement 1. Prepare the stockholders’ equity section of Lima Corp.’s balance sheet at December 31, 2018. Show the computation of all amounts. Journal entries are not required.
Solution Summary: The author explains how to prepare the stockholders' equity section of the balance sheet at December 31, 2018 for Corporation L.
(Learning Objective 6: Report stockholders’ equity) Lima Corp. has the following stockholders’ equity information: Lima’s charter authorizes the company to issue 4,000 shares of 11% preferred stock with par value of $200 and 700,000 shares of no-par common stock. The company issued 1,000 shares of the preferred stock at $200 per share. It issued 350,000 shares of the common stock for a total of $512,000. The company’s retained earnings balance at the beginning of 2018 was $75,000, and net income for the year was $100,000. During 2018, Lima declared the specified dividend on preferred and a $0.10 per-share dividend on common. Preferred dividends for 2017 were in arrears.
Requirement
1. Prepare the stockholders’ equity section of Lima Corp.’s balance sheet at December 31, 2018. Show the computation of all amounts. Journal entries are not required.
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.
A business operated at 100% of capacity during its first month and
incurred the following costs:
Production costs (10,000 units):
Direct materials
Direct labor
Variable factory overhead
Fixed factory overhead
$ 1,40,000
$ 40,000
$ 20,000
$ 4,000 $2,04,000
Operating expenses:
Variable operating expenses
$ 34,000
Fixed operating expenses
2,000
36,000
If 2,000 units remain unsold at the end of the month and sales total
$300,000 for the month, what is the amount of the manufacturing
margin that would be reported on the variable costing income
statement?
a. $104,000
b. $106,000
c. $140,000
d. not reported
A certain product sells for $55. It has variable costs of $33 per unit and fixed costs of $300,000 per year. How many products must the company manufacture to break even?(Round your answer to nearest unit number)
I want to correct answer general accounting
Chapter 10 Solutions
Financial Accounting (12th Edition) (What's New in Accounting)
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