Financial & Managerial Accounting
13th Edition
ISBN: 9781285866307
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 11, Problem 11.18EX
To determine
Stockholders’ Equity Section: It is refers to the section of the
To list: The identified errors in the stockholders’ equity section of the balance sheet.
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List the errors in the following Stockholders' Equity section of the balance sheet prepared
as of the end of the current year:
Stockholders' Equity
Paid-in capital:
Preferred 2% stock, $80 par (125,000 shares
authorized and issued)....
Excess of issue price over par.
Retained earnings....
Treasury stock (75,000 shares at cost)
Dividends payable...
Total paid-in capital
$10,000,000
$ 10,500,000
96,700,000
500,000
1,755,000
430,000
$ 109,385,000
Common stock, $20 par (1,000,000 shares authorized,
825,000 shares issued).....
17,655,000
Organizing costs ....
Total stockholders'equity..
300,000
$127,340,000
... ...
Stockholders' Equity Section of Balance Sheet
The following Stockholders' Equity section of the balance sheet prepared as of the end of the current year contains errors.
Stockholders’ Equity
Paid-in capital:
Preferred 2% stock, $80 par (125,000 shares authorized and issued)
$10,000,000
Excess of issue price over par
500,000
Paid-in capital, preferred stock
$10,500,000
Retained earnings
96,700,000
Treasury stock (75,000 shares at cost)
1,755,000
Dividends payable
430,000
Total paid-in capital
$109,385,000
Common stock, $20 par (1,000,000 shares authorized, 825,000 shares issued)
17,655,000
Organizing costs
300,000
Total stockholders' equity
$127,340,000
Prepare a corrected Stockholders' Equity section.
Stockholders' Equity
Paid-In Capital:
$
$
$
Total paid in capital
$
Total
$
Total stockholders' equity
$
Please do not give image format
Chapter 11 Solutions
Financial & Managerial Accounting
Ch. 11 - Of two corporations organized at approximately the...Ch. 11 - A stockbroker advises a client to buy preferred...Ch. 11 - A corporation with both preferred stock and common...Ch. 11 - An owner of 2,500 shares of Simmons Company common...Ch. 11 - Prob. 5DQCh. 11 - A corporation reacquires 60,000 shares of its own...Ch. 11 - The treasury stock in Discussion Question 7 is...Ch. 11 - What are the three classifications of restrictions...Ch. 11 - Prob. 9DQCh. 11 - Prob. 10DQ
Ch. 11 - Dividends per share National Furniture Company has...Ch. 11 - Dividends per share Zero Calories Company has...Ch. 11 - Entries for issuing stock On August 26, Mountain...Ch. 11 - Entries for issuing stock On January 22, Zentric...Ch. 11 - Entries for cash dividends The declaration,...Ch. 11 - Prob. 11.3BPECh. 11 - Entries for stock dividends Olde Wine Corporation...Ch. 11 - Entries for stock dividends Antique Buggy...Ch. 11 - Entries for treasury stock On January 31,...Ch. 11 - Entries for treasury stock On May 27, Hydro...Ch. 11 - Reporting stockholders equity Using the fallowing...Ch. 11 - Reporting stockholders equity Using the following...Ch. 11 - Retained earnings statement Rockwell Inc. reported...Ch. 11 - Retained earnings statement None Cruises Inc....Ch. 11 - Earnings per share Financial statement data for...Ch. 11 - Earnings per share Financial statement data for...Ch. 11 - Dividends per share Triple Z Inc., a developer of...Ch. 11 - Dividends per share Lightfoot Inc., a software...Ch. 11 - Entries for issuing par stock On April 20,...Ch. 11 - Entries for issuing no-par stock On May 15, Helena...Ch. 11 - Issuing stock for assets other than cash On July...Ch. 11 - Selected stock transactions Alpha Sounds Corp., an...Ch. 11 - Issuing stock Willow Creek Nursery, with an...Ch. 11 - Prob. 11.8EXCh. 11 - Entries for cash dividends The declaration,...Ch. 11 - Entries for stock dividends Senior Life Co. Is an...Ch. 11 - Treasury stock transactions Mystic Lake Inc....Ch. 11 - Prob. 11.12EXCh. 11 - Prob. 11.13EXCh. 11 - Reporting paid-in capital The following accounts...Ch. 11 - Stockholders Equity section of balance sheet The...Ch. 11 - Stockholders Equity section of balance sheet...Ch. 11 - Prob. 11.17EXCh. 11 - Prob. 11.18EXCh. 11 - Prob. 11.19EXCh. 11 - Prob. 11.20EXCh. 11 - Effect of cash dividend and stock split Indicate...Ch. 11 - Selected dividend transactions, stock split...Ch. 11 - Prob. 11.23EXCh. 11 - Prob. 11.24EXCh. 11 - Prob. 11.25EXCh. 11 - Dividends on preferred and common stock Sunbird...Ch. 11 - Stock transactions for corporate expansion On...Ch. 11 - Selected stock transactions The following selected...Ch. 11 - Entries for selected corporate transactions Morrow...Ch. 11 - Entries for selected corporate transactions...Ch. 11 - Prob. 11.1BPRCh. 11 - Stock transaction for corporate expansion Pulsar...Ch. 11 - Selected stock transactions Diamondback Welding ...Ch. 11 - Prob. 11.4BPRCh. 11 - Prob. 11.5BPRCh. 11 - Prob. 11.1CPCh. 11 - Prob. 11.2CPCh. 11 - Issuing stock Epstein Engineering Inc. began...Ch. 11 - Prob. 11.4CPCh. 11 - Prob. 11.5CP
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- Prepare the stockholders equity section of the balance sheet based on the following account balances: Common stock, 2 par, 60,000 shares 120,000 Preferred stock, 10 par, 5%, 4,000 shares 40,000 Common stock subscribed, 2 par, 3,000 shares 6,000 Retained earnings 17,000 The answers to the Self-Study Test Questions are at the end of the chapter (pages 811812).arrow_forwardSTATED VALUE, COMMON AND PREFERRED STOCK, AND NONCASH ASSETS Dans Hobby Stores had the following stock transactions during the year: (a) Issued 5,000 shares of no-par common stock with a stated value of 10 per share for 50,000 cash. (b) Issued 6,000 shares of no-par common stock with a stated value of 10 per share for 63,000 cash. (c) Issued 3,500 shares of no-par, 6% preferred stock with a stated value of 22 per share for 77,000 cash. (d) Issued 10,000 shares of 10 par common stock for land with a fair market value of 100,000. (e) Issued 11,000 shares of 10 par common stock with an 11 fair market value for a building with an uncertain fair market value. (f) Issued 8,000 shares of 30 par, 6% preferred stock for land with a fair market value of 243,000. REQUIRED Prepare general journal entries for these transactions, identifying each by letter.arrow_forwardSTOCKHOLDERS EQUITY SECTION After closing its books on December 31, Mel Brothers stockholders equity accounts have the following balances: Common stock subscriptions receivable 6,000 Common stock, 6 par, 15,000 shares 90,000 Preferred stock, 10 par, 8%, 10,000 shares 100,000 Common stock subscribed, 6 par, 5,000 shares 30,000 Retained earnings 50,000 Prepare the stockholders equity section of the balance sheet.arrow_forward
- STATED VALUE, COMMON AND PREFERRED STOCK, AND NONCASH ASSETS Kris Kraft Stores had the following stock transactions during the year: (a) Issued 8,000 shares of no-par common stock with a stated value of 5 per share for 40,000 cash. (b) Issued 6,000 shares of no-par common stock with a stated value of 5 per share for 33,000 cash. (c) Issued 5,000 shares of no-par, 6% preferred stock with a stated value of 15 per share for 75,000 cash. (d) Issued 10,000 shares of 5 par common stock for land with a fair market value of 50,000. (e) Issued 20,000 shares of 5 par common stock with a 7 fair market value for a building with an uncertain fair market value. (f) Issued 8,000 shares of 50 par, 8% preferred stock for land with a fair market value of 405,000. REQUIRED Prepare general journal entries for these transactions, identifying each by letter.arrow_forwardTreasury Stock, Cost Method Bush-Caine Company reported the following data on its December 31, 2018, balance sheet: The following transactions were reported by the company during 2019: 1. Reacquired 200 shares of its preferred stock at 57 per share. 2. Reacquired 500 shares of its common stock at 16 per share. 3. Sold 100 shares of preferred treasury stock at 58 per share. 4. Sold 200 shares of common treasury stock at 17 per share. 5. Sold 100 shares of common treasury stock at 9 per share. 6. Retired the shares of common stock remaining in the treasury. The company maintains separate treasury stock accounts and related additional paid-in capital accounts for each class of stock. Required: 1. Prepare the journal entries required to record the treasury stock transactions using the cost method. 2. Assuming the company earned a net income in 2019 of 30.000 and declared and paid dividends of 10,000, prepare the shareholders equity section of its balance sheet at December 31, 2019.arrow_forwardPlease do not give solution in image format thankuarrow_forward
- Statement of Stockholders' Equity The stockholders’ equity T accounts of I-Cards Inc. for the year ended December 31, 20Y9, are as follows. Common Stock Jan. 1 Balance 900,000 Apr. 14 Issued 13,200 shares 396,000 Dec. 31 Balance 1,296,000 Paid-In Capital in Excess of Par Jan. 1 Balance 144,000 Apr. 14 Issued 13,200 shares 92,400 Dec. 31 Balance 236,400 Treasury Stock Aug. 7 Purchased 2,200 shares 61,600 Retained Earnings Mar. 31 Dividend 23,000 Jan. 1 Balance 1,570,000 June. 30 Dividend 23,000 Dec. 31 Closing Sept. 30 Dividend 23,000 (Net income) 236,000 Dec. 31 Dividend 23,000 Dec. 31 Balance 1,714,000 Prepare a statement of stockholders’ equity for the year ended December 31, 20Y9. If an amount is zero or an entry is not required, leave the box blank.arrow_forwardStockholders' Equity Section of Balance Sheet The following Stockholders’ Equity section of the balance sheet prepared as of the end of the current year: Stockholders’ Equity Paid-in capital: Preferred 2% stock, $60 par (94,000 shares authorized and issued) $5,640,000 Excess of issue price over par 375,000 $6,015,000 Retained earnings 72,525,000 Treasury stock (56,000 shares at cost) 868,000 Dividends payable 323,000 Total paid-in capital $79,731,000 Common stock, $10 par (750,000 shares authorized, 619,000 shares issued) 6,623,000 Organizing costs 225,000 Total stockholders' equity $86,579,000 Prepare a corrected Stockholders' Equity section. Use the minus sign to indicate any values that are deducted on the statement. Stockholders' Equity Paid-In Capital: blank $- Select - blank - Select - blank blank blank $- Select - blank $- Select - blank - Select - blank blank blank - Select -…arrow_forwardStatement of Stockholders' Equity The stockholders’ equity T accounts of I-Cards Inc. for the fiscal year ended December 31, 20Y9, are as follows. COMMON STOCK Jan. 1 Balance 1,200,000 Apr. 14 Issued 18,600 shares 558,000 Dec. 31 Balance 1,758,000 PAID-IN CAPITAL IN EXCESS OF PAR Jan. 1 Balance 192,000 Apr. 14 Issued 18,600 shares 130,200 Dec. 31 Balance 322,200 TREASURY STOCK Aug. 7 Purchased 3,100 shares 86,800 RETAINED EARNINGS Mar. 31 Dividend 31,000 Jan. 1 Balance 2,090,000 June. 30 Dividend 31,000 Dec. 31 Closing Sept. 30 Dividend 31,000 (Net income) 314,000 Dec. 31 Dividend 31,000 Dec. 31 Balance 2,280,000 Prepare a statement of stockholders’ equity for the year ended December 31, 20Y9. If an amount box does not require an entry, leave it blank. Also, if an amount reduces Stockholders' Equity, then add "minus" sign. I-Cards Inc.Statement of Stockholders' EquityFor the Year Ended…arrow_forward
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