The amount shown for Retained earnings would be called a(n): A) net loss. B) earnings shortfall. C) retained earnings deficit. D) loss on sale of stock. 4. Based on the info above, determine the number of common stock issued. 5. Based on the info above determine the issue/market price for the common stock.
3. Please refer to the equity section of the balance sheet shown as follows:
Common stock $1 par, 500,000 shares authorized, ? shares issued 20,000
Paid-in capital in excess of par -common stock 350,000
Total stockholders' equity $396,000
The amount shown for Retained earnings would be called a(n):
A) net loss.
B) earnings shortfall.
C) retained earnings deficit.
D) loss on sale of stock.
4. Based on the info above, determine the number of common stock issued.
5. Based on the info above determine the issue/market price for the common stock.
The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding their decision-making process. They assume that the company will be formed on January 1, 2021. In addition, J&K Paint Shop Company’s charter will authorize 1,200,000 shares of common stock (to be divided into two classes (700,000 shares class A -voting rights and 500,000 shares class B -nonvoting rights) and 400,000, $X par value (see info below), 5% cumulative preferred stock. They have asked each student from your accounting course to prepare the company’s
a. Issued 40% shares of class A common stock. Stock has par value of $45 per share and was issued at $62 per share.
b. Issued 40% shares of no-par class B stock. (Issue price is at $60.00)
C. Issued 30% shares of preferred stock at par value (Par value - $125).
d. Exchanged 40% shares of class A common stock for Office Furniture and Equipment with an appraised value of $4,000,000 and Motor Truck with an appraised value of $10,000,000.
e. Earned Net income $2,000,000.
f. Declared interim dividends for preferred shareholders as well as $.80 per share to common stockholders.
Using the info above and as a guide:
Prepare the journal entries with narrations to record the following:
The issuances of stock.
Close out net income to retained earnings.
Dividend declared.
Close out dividend to retained earnings.
Prepare the company’s
information on par or par values for all classes of shares which must be shown separately.
the number of shares authorized and issued where necessary.
the sub total for the total paid in capital.
Retained earnings.
total stockholders’ equity.
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The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding their decision-making process. They assume that the company will be formed on January 1, 2021. In addition, J&K Paint Shop Company’s charter will authorize 1,200,000 shares of common stock (to be divided into two classes (700,000 shares class A -voting rights and 500,000 shares class B -nonvoting rights) and 400,000, $X par value (see info below), 5% cumulative preferred stock. They have asked each student from your accounting course to prepare the company’s
a. Issued 40% shares of class A common stock. Stock has par value of $45 per share and was issued at $62 per share.
b. Issued 40% shares of no-par class B stock. (Issue price is at $60.00)
C. Issued 30% shares of preferred stock at par value (Par value - $125).
d. Exchanged 40% shares of class A common stock for Office Furniture and Equipment with an appraised value of $4,000,000 and Motor Truck with an appraised value of $10,000,000.
e. Earned Net income $2,000,000.
f. Declared interim dividends for preferred shareholders as well as $.80 per share to common stockholders.
Using the info above and as a guide:
Prepare the journal entries with narrations to record the following:
The issuances of stock.
Close out net income to
Dividend declared.
Close out dividend to retained earnings.
Prepare the company’s
information on par or par values for all classes of shares which must be shown separately.
the number of shares authorized and issued where necessary.
the sub total for the total paid in capital.
Retained earnings.
total stockholders’ equity.
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