Financial Accounting
15th Edition
ISBN: 9781337272124
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 13, Problem 6PEA
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Using the following accounts and balances, prepare the Stockholders’ Equity section of the balance sheet using Method 1 ofExhibit 8. Refer to the lists of Accounts and Amount Descriptions provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
One hundred thousand shares of common stock are authorized, and 5,000 shares have been reacquired.
Common Stock, $2 par$ 150,000Paid-In Capital from Sale of Treasury Stock60,000Paid-In Capital in Excess of Par—Common Stock2,250,000Retained Earnings10,880,000Treasury Stock140,000.
Using the following accounts and balances, prepare the Stockholders’ Equity section of the balance sheet using Method 1 of Exhibit 8. One hundred thousand shares of common stock are authorized, and 5,000 shares have been reacquired.Common Stock, $2 par $ 150,000Paid-In Capital from Sale of Treasury Stock 60,000Paid-In Capital in Excess of Par—Common Stock 2,250,000Retained Earnings 10,880,000Treasury Stock 140,000
Prepare all journal entries and adjusting journal entries necessary to record all of Red Robin’s transactions related to its stockholders’ equity. See information below:
Stockholders’ Equity
On January 1 of the current year, Red Robin had 441,100 shares of $1 par value common stock issued (i.e., the shares had been issued prior to the current year). They have 1,245,000 shares authorized and 400,200 shares outstanding.
Red Robin has had only one stock repurchase transaction in its history.
On August 1 of the current year, Red Robin reissued 6,650 shares for$24 per share. On December 1 of the current year, Red Robin reissued 11,700 shares at $12 per share.
Red Robin declared dividends of 18 cents per share on the last day of each calendar quarter and paid them on the 5th day of the 1st month of each calendar quarter. For the sake of simplicity, assume the date of record is also the last day of each calendar quarter. Red Robin did not declare any dividends in the prior year.
Chapter 13 Solutions
Financial Accounting
Ch. 13 - Of two corporations organized at approximately the...Ch. 13 - A stockbroker advises a client to buy preferred...Ch. 13 - A corporation with both preferred stock and common...Ch. 13 - An owner of 2,500 shares of Simmons Company common...Ch. 13 - Prob. 5DQCh. 13 - What is the primary purpose of a stock split?Ch. 13 - A corporation reacquires 60,000 shares of its own...Ch. 13 - The treasury stock in Discussion Question 7 is...Ch. 13 - What are the three classifications of restrictions...Ch. 13 - Prob. 10DQ
Ch. 13 - Dividends per share Reinhardt Furniture Company...Ch. 13 - Prob. 1PEBCh. 13 - Entries for issuing stock On May 23, Stoltz Realty...Ch. 13 - Entries for issuing stock On January 22, Zentric...Ch. 13 - Entries for cash dividends The declaration,...Ch. 13 - Entries for cash dividends The declaration,...Ch. 13 - Entries for stock dividends Pro-Builders...Ch. 13 - Entries for stock dividends Antique Buggy...Ch. 13 - Prob. 5PEACh. 13 - Prob. 5PEBCh. 13 - Prob. 6PEACh. 13 - Prob. 6PEBCh. 13 - Prob. 7PEACh. 13 - Prob. 7PEBCh. 13 - Prob. 8PEACh. 13 - Prob. 8PEBCh. 13 - Dividends per share Imaging Inc., a developer of...Ch. 13 - Dividends per share Lightfoot Inc., a software...Ch. 13 - Entries for issuing par stock On October 31,...Ch. 13 - Entries for issuing no-par stock On February 12,...Ch. 13 - Issuing stock for assets other than cash On April...Ch. 13 - Prob. 6ECh. 13 - Issuing stock Willow Creek Nursery, with an...Ch. 13 - Issuing stock Work Place Products Inc., a...Ch. 13 - Entries for cash dividends The declaration,...Ch. 13 - Entries for stock dividends Senior Life Co. is an...Ch. 13 - Prob. 11ECh. 13 - Prob. 12ECh. 13 - Selected dividend transactions, stock split...Ch. 13 - Treasury stock transactions Lava Lake Inc. bottles...Ch. 13 - Treasury stock transactions Lawn Spray Inc....Ch. 13 - Treasury stock transactions Biscayne Bay Water...Ch. 13 - Reporting paid-in capital The following accounts...Ch. 13 - Stockholders Equity section of balance sheet The...Ch. 13 - Stockholders Equity section of balance sheet...Ch. 13 - Retained earnings statement Sumter Pumps...Ch. 13 - Stockholders Equity section of balance sheet List...Ch. 13 - Prob. 22ECh. 13 - EPS Junkyard Arts, Inc., had earnings of 316,000...Ch. 13 - EPS Pacific Gas and Electric Company is a large...Ch. 13 - EPS Caterpillar Inc. and Deere Company are two...Ch. 13 - Dividends on preferred and common stock Pecan...Ch. 13 - Stock transactions for corporate expansion On...Ch. 13 - Selected stock transactions The following selected...Ch. 13 - Prob. 4PACh. 13 - Entries for selected corporate transactions...Ch. 13 - Dividends on preferred and common stock Yosemite...Ch. 13 - Prob. 2PBCh. 13 - Selected stock transactions Diamondback Welding ...Ch. 13 - Entries for selected corporate transactions Nav-Go...Ch. 13 - Prob. 5PBCh. 13 - Ethics in Action Tommy Gunn is a division manager...Ch. 13 - Prob. 2CPCh. 13 - Prob. 4CPCh. 13 - Prob. 5CPCh. 13 - Issuing stock Epstein Engineering Inc. began...
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- Stockholders' Equity section of balance sheet The following accounts and their balances appear in the ledger of Goodale Properties Inc. on June 30 of the current year: Prepare the Stockholders Equity section of the balance sheet as of June 30. Eighty thousand shares of common stock are authorized, and 9,000 shares have been reacquired.arrow_forwardPrepare 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_forwardsing the following accounts and balances, prepare the “Stockholders’ Equity” section of the balance sheet. 100,000 shares of common stock authorized, and 1,000 shares have been reacquired. Common Stock, $70 par$4,900,000Paid-In Capital from Sale of Treasury Stock294,000Paid-In Capital in Excess of Par—Common Stock1,750,000Retained Earnings2,254,000Treasury Stock138,000 Balance SheetStockholders' Equity Paid-in capital: $fill in the blank 2 fill in the blank 4 Paid-in capital, common stock $fill in the blank 5 fill in the blank 7 Total paid-in capital $fill in the blank 8 Total $ Total stockholders' equity $arrow_forward
- Using the following accounts and balances, prepare the Stockholders' Equity section of the balance sheet using Method 1 of Exhibit 8. Two hundred thousand shares of common stock are authorized, and 5,000 shares have been reacquired. Common Stock, $3 par $270,000 Paid-In Capital from Sale of Treasury Stock 62,000 Paid-In Capital in Excess of Par—Common Stock 1,196,000 Retained Earnings 7,430,000 Treasury Stock 230,000 Stockholders' Equity Paid-in capital: Common Stock, $3 par (200,000 shares authorized, 90,000 shares issued) $fill in the blank 2 Excess over par fill in the blank 4 Paid-in capital, common stock $fill in the blank 6 From Sale of Treasury Stock fill in the blank 8 Total Paid-In Capital $fill in the blank 9 Retained Earnings fill in the blank 11 Treasury stock (5,000 shares at cost) fill in the blank 13 Total Stockholders' Equity $fill in the blank 14arrow_forwardIndigo Corporation is authorized to issue both preferred and common stock. The par value of the preferred is $50. During the first year of operations, the company had the following events and transactions pertaining to its preferred stock. Feb. 1 Issued 53,500 shares for cash at $52 per share. July 1 Issued 70,500 shares for cash at $57 per share. 1. Journalize the transactions. 2. Post to the stockholders’ equity accounts. (Use T-accounts.)arrow_forwardPrepare a statement of stockholders' equity for Al-Can Products, Inc. Navigate to the Stockholders' Equity Statement tab in the spreadsheet. Use the following information to prepare your statement: a. January 1 balance of capital stock account of 9,000 shares issued at $6.00 per share was $54,000.00. b. No other stock was issued during the year. c. January 1 balance of retained earnings account was $29,250.00. d. Net Income was $41,106.00. e. Dividends declared during the year were $19,200.00.arrow_forward
- please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image)arrow_forwardIncentive Corporation was authorized to issue 12,000 shares of common stock, each with a $1 parvalue. During its first year, the following selected transactions were completed:a. Issued 6,000 shares of common stock for cash at $20 per share.b. Issued 2,000 shares of common stock for cash at $23 per share.Required:1. Show the effects of each transaction on the accounting equation.2. Give the journal entry required for each of these transactions.3. Prepare the stockholders’ equity section as it should be reported on the year-end balancesheet. At year-end, the accounts reflected a profit of $100.4. Incentive Corporation has $30,000 in the company’s bank account. What is the maximumamount of cash dividends the company can declare and distribute?arrow_forwardplease answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image)arrow_forward
- Prepare journal entries to record the following transactions for Sherman Systems.a. Purchased 6,600 shares of its own common stock at $41 per share on October 11.b. Sold 1,400 treasury shares on November 1 for $47 cash per share.c. Sold all remaining treasury shares on November 25 for $40 cash per share. On October 10, the stockholders’ equity section of Sherman Systems appears as follows. Common stock–$10 par value, 88,000 shares authorized, issued, and outstanding $ 880,000 Paid-in capital in excess of par value, common stock 296,000 Retained earnings 992,000 Total stockholders’ equity $ 2,168,000 Prepare journal entries to record the following transactions for Sherman Systems.a. Purchased 6,600 shares of its own common stock at $41 per share on October 11.b. Sold 1,400 treasury shares on November 1 for $47 cash per share.c. Sold all remaining treasury shares on November 25 for $40 cash per share.arrow_forwardOn April 1, 10,000 shares of $8 par common stock were issued at $25, and on April 7, 3,000 shares of $80 par preferred stock were issued at $107. Required: Journalize the entries for April 1 and 7. Refer to the Chart of Accounts for exact wording of account titles.arrow_forwardPrepare journal entries to record each of these transactions.arrow_forward
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Stockholders Equity: How to Calculate?; Author: Accounting University;https://www.youtube.com/watch?v=2jZk1T5GIlw;License: Standard Youtube License