D'Ouville Company was formed on July 1, 2017. It was authorized to issue 500,000 shares of $10 par value common stock and 100,000 shares of 4%, $25 par value, cumulative and nonparticipating preferred stock. D'Ouville Company has a July 1–June 30 fiscal year. The following information relates to the stockholders’ equity accounts of D'Ouville Company. Common Stock: Prior to the 2019–2020 fiscal year, D'Ouville Company had 110,000 shares of outstanding common stock issued as follows. 1. 95,000 shares were issued for cash on July 1, 2017, at $31 per share. 2. On July 24, 2017, 5,000 shares were exchanged for a plot of land which cost the seller $70,000 in 2011 and had an estimated fair value of $220,000 on July 24, 2017. 3. 10,000 shares were issued on March 1, 2019, for $42 per share. During the 2019–2020 fiscal year, the following transactions regarding common stock took place. November 30, 2019 D'Ouville purchased 2,000 shares of its own stock on the open market at $39 per share. D'Ouville uses the cost method for treasury stock. December 15, 2019 D'Ouville declared a 5% stock dividend for stockholders of record on January 15, 2020, to be issued on January 31, 2020. D'Ouville was having a liquidity problem and could not afford a cash dividend at the time. D'Ouville's common stock was selling at $52 per share on December 15, 2019. June 20, 2020 D'Ouville sold 500 shares of its own common stock that it had purchased on November 30, 2019, for $21,000. Preferred Stock: D'Ouville issued 100,000 shares of preferred stock at $44 per share on July 1, 2018. Cash Dividends: D'Ouville has followed a schedule of declaring cash dividends in December and June, with payment being made to stockholders of record in the following month. The cash dividends which have been declared since inception of the company through June 30, 2020, are shown below. DeclarationDate 000 CommonStock 000 PreferredStock 12/15/18 000 $0.30 per share 000 $0.50 per share 6/15/19 000 $0.30 per share 000 $0.50 per share 12/15/19 000 — 000 $0.50 per share No cash dividends were declared during June 2020 due to the company's liquidity problems. Retained Earnings: As of June 30, 2019, D'Ouville retained earnings account had a balance of $550,000. For the fiscal year ending June 30, 2020, D'Ouville reported net income of $120,000. Instructions Prepare the stockholders’ equity section of the balance sheet, including appropriate notes, for D'Ouville Company as of June 30, 2020, as it should appear in its annual report to the shareholders.

D'Ouville Company was formed on July 1, 2017. It was authorized to issue 500,000 shares of $10 par value common stock and 100,000 shares of 4%, $25 par value, cumulative and nonparticipating preferred stock. D'Ouville Company has a July 1–June 30 fiscal year. The following information relates to the stockholders’ equity accounts of D'Ouville Company. Common Stock: Prior to the 2019–2020 fiscal year, D'Ouville Company had 110,000 shares of outstanding common stock issued as follows. 1. 95,000 shares were issued for cash on July 1, 2017, at $31 per share. 2. On July 24, 2017, 5,000 shares were exchanged for a plot of land which cost the seller $70,000 in 2011 and had an estimated fair value of $220,000 on July 24, 2017. 3. 10,000 shares were issued on March 1, 2019, for $42 per share. During the 2019–2020 fiscal year, the following transactions regarding common stock took place. November 30, 2019 D'Ouville purchased 2,000 shares of its own stock on the open market at $39 per share. D'Ouville uses the cost method for treasury stock. December 15, 2019 D'Ouville declared a 5% stock dividend for stockholders of record on January 15, 2020, to be issued on January 31, 2020. D'Ouville was having a liquidity problem and could not afford a cash dividend at the time. D'Ouville's common stock was selling at $52 per share on December 15, 2019. June 20, 2020 D'Ouville sold 500 shares of its own common stock that it had purchased on November 30, 2019, for $21,000. Preferred Stock: D'Ouville issued 100,000 shares of preferred stock at $44 per share on July 1, 2018. Cash Dividends: D'Ouville has followed a schedule of declaring cash dividends in December and June, with payment being made to stockholders of record in the following month. The cash dividends which have been declared since inception of the company through June 30, 2020, are shown below. DeclarationDate 000 CommonStock 000 PreferredStock 12/15/18 000 $0.30 per share 000 $0.50 per share 6/15/19 000 $0.30 per share 000 $0.50 per share 12/15/19 000 — 000 $0.50 per share No cash dividends were declared during June 2020 due to the company's liquidity problems. Retained Earnings: As of June 30, 2019, D'Ouville retained earnings account had a balance of $550,000. For the fiscal year ending June 30, 2020, D'Ouville reported net income of $120,000. Instructions Prepare the stockholders’ equity section of the balance sheet, including appropriate notes, for D'Ouville Company as of June 30, 2020, as it should appear in its annual report to the shareholders.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 18E: Monona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares...

See similar textbooks

Related questions

Question

Common Stock: Prior to the 2019–2020 fiscal year, D'Ouville Company had 110,000 shares of outstanding common stock issued as follows.

1. 95,000 shares were issued for cash on July 1, 2017, at $31 per share.

2. On July 24, 2017, 5,000 shares were exchanged for a plot of land which cost the seller $70,000 in 2011 and had an estimated fair value of $220,000 on July 24, 2017.

3. 10,000 shares were issued on March 1, 2019, for $42 per share.

During the 2019–2020 fiscal year, the following transactions regarding common stock took place.

November 30, 2019	D'Ouville purchased 2,000 shares of its own stock on the open market at $39 per share. D'Ouville uses the cost method for treasury stock.
December 15, 2019	D'Ouville declared a 5% stock dividend for stockholders of record on January 15, 2020, to be issued on January 31, 2020. D'Ouville was having a liquidity problem and could not afford a cash dividend at the time. D'Ouville's common stock was selling at $52 per share on December 15, 2019.
June 20, 2020	D'Ouville sold 500 shares of its own common stock that it had purchased on November 30, 2019, for $21,000.

Preferred Stock: D'Ouville issued 100,000 shares of preferred stock at $44 per share on July 1, 2018.

Cash Dividends: D'Ouville has followed a schedule of declaring cash dividends in December and June, with payment being made to stockholders of record in the following month. The cash dividends which have been declared since inception of the company through June 30, 2020, are shown below.

Declaration Date	Common Stock	Preferred Stock
12/15/18	$0.30 per share	$0.50 per share
6/15/19	$0.30 per share	$0.50 per share
12/15/19	—	$0.50 per share

No cash dividends were declared during June 2020 due to the company's liquidity problems.

Retained Earnings: As of June 30, 2019, D'Ouville retained earnings account had a balance of $550,000. For the fiscal year ending June 30, 2020, D'Ouville reported net income of $120,000.

Instructions

Prepare the stockholders’ equity section of the balance sheet, including appropriate notes, for D'Ouville Company as of June 30, 2020, as it should appear in its annual report to the shareholders.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.