Beta Co. sold 10,000 shares of common stock, which has a par value of $25, for $27 per share.The company also sold 1,000 shares of $100 par value preferred stock for $110. Assume thebalance in retained earnings is $100,000. Prepare the stockholders’ equity section of Beta’sbalance sheet.

Q: Novak Corporation earned $371,000 during a period when it had an average of 100,000 shares of common…

A: Formula: Earnings per share = ( Net income - Total preferred dividends ) / Total outstanding shares

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A: Solution: Working: Date Particulars Ordinary Share (P) paid in capital of excess of par retained…

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A: Time interest earned ratio means the number of times a company is earing profits as compared to…

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A: Calculate the preferred dividend as follows: Preferred dividend= Face value * Preference dividend…

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A: Earnings per share refer to the amount earned by each stockholder. This can be identified by…

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A: Stockholders equity: When the common stock is issued, the shareholders become the company owners and…

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A: Net Income is the total Income earned by the company out of their Investments. Earning Per Shares is…

Q: Blossom Corporation earned $352,000 during a period when it had an average of 100,000 shares of…

A: Incremental shares = [(Market price - option price)/market price] x no. of warrant = [(15-10)/15] x…

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A: Stock dividend result in issuance of shares of company to the existing shareholders unlike the cash…

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A: Treasury stock is the amount or value of stock that is being reacquired or repurchased from the…

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A: a.journalize the entries to record the declaration and issuance of stock dividends.

Q: Suppose a company purchases 2,000 shares of its own $1 par value common stock for $16 per share. The…

A: Treasury stock is the stock which is bought back by the issuing company. It is also known as…

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A: To meet the financial requirement of the business, companies raise the funds through external…

Q: Texas Inc. has 12,000 shares of 8%, $125 par value cumulative preferred stock and 90,000 shares of…

A: Stock Dividends: It refers to the payment of dividends by a company to its existing shareholders, in…

Q: Sneed Corporation issues 11,600 shares of $45 par preferred stock for cash at $67 per share. The…

A: Total par value of preferred stock issued = No. of shares issued x par value per share = 11,600…

Q: ABC Corporation was organized on January 3, 2007, with authorized capital of 100,000 shares of P10…

A: January 7 :- Common stock = 40,000 x 10 = 400,000                 Additional paid in capital =…

Q: Howard corporation had 10,000 shares of common stock outstanding at the beginning of the year. On…

A: Weighted average number of shares is the total number of outstanding shares calculated at the end of…

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A: Dividends: This is the amount of cash distributed to stockholders by a company out its earnings,…

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A: Journal entry refers to the recording of daily transactions of an organization. It has a credit and…

Q: Elroy Corporation repurchased 3,300 shares of its own stock for $55 per share. The stock has a par…

A: Solution Given Number of repurchased shares 3300 Repurchase price $55 Number of…

Q: Quickbux Co. issued and sold 1,000 shares of common stock, with a par value of $5, for $12 per…

A: Shareholders' equity includes common stock, preferred stock, paid-in capital in excess of par, and…

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A: Preferred stock holder means those stock holder who will be getting dividend before the common…

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A: Preferred dividend = No. Od preferred stock x dividend per share = 23000 shares x $2.10 per share =…

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Q: Clair, Inc reports net income of $700,000. It declares and pays dividends of $100,000 for the year,…

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Q: Eastline Corporation had 11,000 shares of $10 par value common stock outstanding when the board of…

A: Large stock dividend, A stock dividend is considered to be large if the new shares being issued are…

Q: Elroy Corporation repurchased 2,500 shares of its own stock for $35 per share. The stock has a par…

A: Treasury shares are those shares which are being repurchased by the company from its own…

Q: Amigo Software Inc. has total assets of $823,000, current liabilities of $248,000, and long-term…

A: a. given, total assets=$823,000 current liabilities=$248,000 long term liabilities=$147,000…

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A: Earnings per share (EPS): The amount of net income available to each shareholder per common share…

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A: Stocks are issued at fair value. But, they should record as “par value for share capital” and…

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A: Dividend distribution is a method of distributing profit among the stockholder of the organization.…

Q: Elroy Corporation repurchased 4,000 shares of its own stock for $50 per share. The stock has a par…

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Q: Alpha Co. sold 10,000 shares of common stock, which has a par value of $10, for $13 per share.The…

A: Stockholders’ equity section of the company’s balance sheet shall contain the details of the funds…

Q: Junkyard Arts, Inc., had earnings of $316,000 for the year. The company had 40,000 shares of common…

A: Calculate earnings per share:

Q: Oregon, Inc., reported net income of $105,000. During the current year, the company had 5,000 shares…

A: Dividend to preferred stockholders = No. of preferred stock x par value per share x rate of dividend…

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A: Given, Total paid-in capital and retained earnings= $877,000 Total stockholders’ equity = $817,000…

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A: Earnings per share refers to the amount earned by each stockholder. This can be identified by…

Q: Wildhorse Co. issues 36000 shares of $50 par value preferred stock for cash at $75 per share. In the…

A: Preferred Stock Capital will be increased by = No. of shares issued x Par value per share = 36000…

Q: Ahnberg Corporation had 800,000 shares of common stock issued and outstanding at January 1. No…

A: Definition:   Earnings per share (EPS): The amount of net income available to each shareholder per…

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A: Book value per ordinary share can be defined as the ratio of shareholders' equity and the number of…

Q: Suppose a company purchases 2,000 shares of its own $1 par value common stock for $16 per share.…

A: Definition:

Q: Richards Corporation had net income of $231,470 and paid dividends to common stockholders of…

A: Price-earning ratio refers to the ratio which conveys the worth of the company. In other words,…

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A: Weighted average number of shares outstanding is the sum of all outstanding shares multiplied by the…

Q: Luke Enterprises has 300,000 shares of $20 par common stock outstanding. On January 19, Luke…

A: Working note 1: Determine the amount of stock dividend to be paid.   Particulars   Number…

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A: Junkyard earnings = $ 446400 Common stock outstanding = 54000 shares Number of preferred stock =…

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 stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.