Intermediate Accounting
1st Edition
ISBN: 9780132162302
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Textbook Question
Chapter 5, Problem 5.8P
Prepare Statement of Stockholders’ Equity. Use the information in P5-3 for Right Angle Manufacturing Company and the following additional information provided to complete the requirements.
Right Angle issued $20,000 of no-par common stock in the current year The company also repurchased $15,000 of its shares at the end of the reporting period. The company is subject to a 40% income tax rate The beginning balance of common stock (no par) was $75,030.
Required:
- a. Prepare a statement of
stockholders equity for the year ended December 31. - b. Prepare a partial
balance sheet to show the ending balances in the stockholders’ equity section.
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The following information was extracted from the records of Cascade Company at the end of the fiscal yea
were completed:
Common stock ($0.01 par value; 230,000 shares authorized, 55,500 shares
issued, 53,500 shares outstanding)
Additional paid-in capital
Dividends declared and paid during the year
Retained earnings at the end of the year
Treasury stock at cost (2,000 shares)
Net income
Current stock price
Required:
1. Prepare the stockholders' equity section of the balance sheet at the end of the fiscal year.
2. Compute the dividend yield ratio. Determine the number of shares of stock that received dividends.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Compute the dividend yield ratio. Determine the number of shares of stock that received dividends.
Note: Do not round your intermediate calculations. Round Dividend yield ratio to 2 decimal places.
Dividend yield ratio
Number of shares
%
$ 555
459,000
23,500
315,000
(16;500)
$ 96,500
$ 10
>
Required information
[The following information applies to the questions displayed below]
Markus Company's common stock sold for $5.25 per share at the end of this year. The company paid a common stock
dividend of $0.63 per share this year. It also provided the following data excerpts from this year's financial statements.
Cash
Accounts receivable
Inventory
Current assets
Total assets
Current liabilities
Total liabilities
Common stock, $1 par value
Total stockholders' equity
Total liabilities and stockholders' equity
Sales (all on account)
Cost of goods sold
Gross margin
Net operating income
Interest expense
Net Income
This Year
$ 1,095,000
$ 635,100
$ 459,900
$313,875
$ 15,500
$ 208,862
Ending Balance
$ 49,000
$ 92,000
$76,300
$ 217,300
$ 801,000
$ 85,500
$206,000
$ 165,000
$ 595,000
$ 801,000
Beginning
Balance:
$ 44,200
$ 68,700
$ 92,000
$ 204,900
$ 875,400
$ 90,000
$ 185,400
$ 165,000
$ 690,000
$ 875,400
Hever Rainbow Company provides the following information regarding its most recent balance sheet.
(Click the icon to view the data.)
Hever Rainbow acquired 22,000 shares of common stock in the open market at a price of $18 per share and retired the shares. What is the journal entry to record this transaction? (Record debits first, then
credits. Exclude explanations from any journal entries.)
Account
Current Year
Data table
Stockholders' Equity
Common stock, $2 par value, 495,000 shares authorized, 177,500
shares issued and outstanding
$
355,000
Additional paid-in capital in excess of par - common
887,500
Additional paid-in capital - retired shares
Retained earnings
214,500
1,743,000
$
3,200,000
Total stockholders' equity
Chapter 5 Solutions
Intermediate Accounting
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