Horngren's Financial & Managerial Accounting Plus Mylab Accounting With Pearson Etext -- Access Card Package (5th Edition) (miller-nobles Et Al., The Horngren Accounting Series)

5th Edition

ISBN: 9780134077345

Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura

Publisher: PEARSON

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Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The sto…

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Textbook Question

Chapter 13, Problem 13.44BP

Journalizing dividends and treasury stock transactions and preparing the stockholders' equity section of the balance sheet

Summerborn Manufacturing Co. completed the following transactions during 2016:

Jan. 16	Declared a cash dividend on the 6%, $97 par noncumulative preferred stock (1,150 shares outstanding). Declared a $0.25 per share dividend on the 1 05,000 shares of $8 par value common stock outstanding. The date of record is January 31, and the payment date is February 15.
Feb. 15	Paid the cash dividends.
Jun. 10	Split common stock 2-for-1.
Jul. 30	Declared a 50% stock dividend on the common stock. The market value of the common stock was $11 per share.
Aug. 15	Distributed the stock dividend.
Oct. 26	Purchased 1,400 shares of treasury stock at $9 per share.
Nov. 8	Sold 700 shares of treasury stock for $11 per share.
30	Sold 500 shares of treasury stock for $6 per share.

Requirements

1. Record the transactions in Summerborn's general journal.

2. Prepare the Summerborn's stockholders' equity section of the balance sheet as of December 31, 2016. Assume that Summerborn was authorized to issue 1,500 shares of preferred stock and 500,000 shares of common stock. Both preferred stock and common stock were issued at par. The ending balance of retained earnings as of December 31, 2016, is $2,080,000.

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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Chapter 13, Problem 13.43BP

Chapter 13, Problem 13.45BP

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Chapter 13 Solutions

Horngren's Financial & Managerial Accounting Plus Mylab Accounting With Pearson Etext -- Access Card Package (5th Edition) (miller-nobles Et Al., The Horngren Accounting Series)

Ch. 13 - Prob. 1QC Ch. 13 - Prob. 2QC Ch. 13 - Suppose Value Home and Garden Imports issued...Ch. 13 - Prob. 4QC Ch. 13 - Prob. 5QC Ch. 13 - Assume that a company paid 6 per share to purchase...Ch. 13 - Prob. 7QC Ch. 13 - A small stock dividend a. decreases common stock....Ch. 13 - Jackson Health Foods has 8,000 shares of 2 par...Ch. 13 - Prob. 10QC

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Solution Summary: The author explains how cash dividends are paid to shareholders as a return for the amount invested by them.

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