Equity Section of the Balance Sheet - Analysis and JEs The stockholders' equity category of Frost Company's December 31, 2019 balance sheet in the first year of operations appears below. Preferred stock, 500,000 shares authorized, 6.25%, 750,000 150,000 shares issued and outstanding Common stock, $0.50 par value, 800,000 shares authorized, 110,000 220,000 shares issued, 180,000 shares outstanding Additional paid in capital - common stock Total contributed capital Retained earnings Treasury stock - common stock Total stockholders' equity 2,420,000 3,280,000 2,000,000 (440,000) 4,840,000

Intermediate Accounting: Reporting And Analysis
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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
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Equity Section of the Balance Sheet - Analysis and JEs
The stockholders' equity category of Frost Company's December 31, 2019
balance sheet in the first year of operations appears below.
Preferred stock, 500,000 shares authorized, 6.25%,
750,000
150,000 shares issued and outstanding
Common stock, $0.50 par value, 800,000 shares authorized,
110,000
220,000 shares issued, 180,000 shares outstanding
Additional paid in capital - common stock
Total contributed capital
Retained earnings
2,420,000
3,280,000
Treasury stock - common stock
Total stockholders' equity
2,000,000
(440,000)
4,840,000
Required
Note there's a difference between the number of shares and the dollar value of shares.
1 Determine the number of shares of common stock issued.
2 Determine the number of shares of preferred stock issued.
3 Determine the dollar value paid to repurchase common stock.
4 Determine the number of shares in treasury stock.
5 Record the necessary journal entry for the issuance of preferred stock.
General Journal
DR
CR
Page 1
6 Record the necessary journal entry for the issuance of common stock.
General Journal
DR
CR
Transcribed Image Text:Equity Section of the Balance Sheet - Analysis and JEs The stockholders' equity category of Frost Company's December 31, 2019 balance sheet in the first year of operations appears below. Preferred stock, 500,000 shares authorized, 6.25%, 750,000 150,000 shares issued and outstanding Common stock, $0.50 par value, 800,000 shares authorized, 110,000 220,000 shares issued, 180,000 shares outstanding Additional paid in capital - common stock Total contributed capital Retained earnings 2,420,000 3,280,000 Treasury stock - common stock Total stockholders' equity 2,000,000 (440,000) 4,840,000 Required Note there's a difference between the number of shares and the dollar value of shares. 1 Determine the number of shares of common stock issued. 2 Determine the number of shares of preferred stock issued. 3 Determine the dollar value paid to repurchase common stock. 4 Determine the number of shares in treasury stock. 5 Record the necessary journal entry for the issuance of preferred stock. General Journal DR CR Page 1 6 Record the necessary journal entry for the issuance of common stock. General Journal DR CR
"Page 1
6 Record the necessary journal entry for the issuance of common stock.
General Journal
DR
CR
7 Record the repurchase of common stock.
General Journal
DR
CR
8 Record $50,000 in cash dividends declared.
General Journal
DR
CR
9 Record the $50,000 cash dividends that have now been paid.
General Journal
DR
CR
10 Assume and record a property dividend of inventory valued at $75,000 declared and paid.
General Journal
DR
CR
11 Assume a common stock dividend declared of 19% of shares outstanding. Market at $12 per share.
General Journal
DR
CR
12 Assume a common stock dividend declared of 35% of shares outstanding.
General Journal
DR
CR
Transcribed Image Text:"Page 1 6 Record the necessary journal entry for the issuance of common stock. General Journal DR CR 7 Record the repurchase of common stock. General Journal DR CR 8 Record $50,000 in cash dividends declared. General Journal DR CR 9 Record the $50,000 cash dividends that have now been paid. General Journal DR CR 10 Assume and record a property dividend of inventory valued at $75,000 declared and paid. General Journal DR CR 11 Assume a common stock dividend declared of 19% of shares outstanding. Market at $12 per share. General Journal DR CR 12 Assume a common stock dividend declared of 35% of shares outstanding. General Journal DR CR
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