For a recent 2-year period, the balance sheet of Ivanhoe Company showed the following stockholders' equity data at December 31 (in millions). 2020 2019 Additional paid-in capital $ 940 $ 842 Common stock 663 651 Retained earnings 7,210 5,320 Treasury stock 1,634 858 Total stockholders' equity $7,179 $5,955 Common stock shares issued 221 217 Common stock shares authorized 500 500 Treasury stock shares 38 26 (a) Answer the following questions. (1) What is the par value of the common stock? (Round par value to 2 decimal places, e.g. $3.15.) (2) What is the cost per share of treasury stock at December 31, 2020, and at December 31, 2019? December 31, 2020 December 31, 2019 Cost per share of Treasury stock Şenter a dollar amount Şenter a dollar amount (b) Prepare the stockholders' equity section at December 31, 2020. (Enter account name only and do not provide descriptive information.)
Q: c) The preferred stock is noncumulative and is participating in distributions in excess of a 9%…
A: Preferred stock: The stock that provides a fixed amount of return (dividend) to its stockholder…
Q: For a recent 2-year period, the balance sheet of Santana Dotson Company showed the following…
A: Step 1 The par value of the common stock for 2019 is $2.50 which is obtained by dividing the value…
Q: The following stockholders’ equity accounts arranged alphabetically are in the ledger of Westin…
A: Common stock: These are the shares issued by a company to an outsider. These shares entitle a share…
Q: Pharoah Company had the following stockholders' equity as of January 1, 2020. Common stock, $5 par…
A: Journal entry: A journal entry is used to record day-to-day transactions of the business by debiting…
Q: The December 31, 2021, balance sheet of MBI Company included the following: Common stock,…
A: Journal entries in the books of accounts are recorded to prepare a proper report of the transactions…
Q: On June 30, 2019, when Elmer Inc. shares were selling for $ 65 each, the equity accounts had the…
A: Stock dividend is a method of capitalizing the retained earning. Under this, no profit is…
Q: The following data are from the accounts of Mitar Corporation at December 31, 2020 ($ thousands).…
A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…
Q: Assume that the following data relative to Oregan Company for 2020 is available: Net Income…
A: Earnings per share: Earnings per share, commonly noted as EPS is the net earnings available for…
Q: An analysis of stockholders' equity of Hang Corporation as of January 1, 2020 is as follows: Common…
A: Solution: Additional paid in capital from treasury stock = (2000*P35 - 2000*P30) - (500*P20 -…
Q: Graham, Inc. began 2020 with 25,000 common shares outstanding and issued a 20% stock dividend on…
A: Earnings per share of the company means all earnings available for each and every common…
Q: The stockholders' equity accounts of Pina Company have the following balances on December 31, 2020.…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: A company has the following stockholders' equity accounts at December 31, 2020.…
A: The shares are issued by companies to invite the investors to invest into the business.
Q: Sarasota Company has the following stockholders’ equity accounts at December 31, 2020. Common…
A: The question is based on the concept of Financial Accounting.
Q: Windsor, Inc.'s stockholders equity section at December 31, 2019, appears below: Stockholder's…
A: Stockholders equity section : It shows the amount of Capital, Reserve and surplus of the…
Q: Enter the beginning balances, and post the entries to the stockholders’ equity accounts. (Use…
A: Compute common stock and paid-in-capital in excess of par for stock dividend declared at market…
Q: Accounting Richard Tandy Company reported the following balances at December 31, 2019: common stock…
A: The ratio analysis helps to analyse the financial statements of the business on regular basis.…
Q: The stockholders’ equity accounts of Sheridan Company have the following balances on December 31,…
A: The stock dividend is a method of capitalizing the retained earning.on the other hand a stock split…
Q: Wilco Corporation has the following account balances at December 31, 2020. Common stock, $5 par…
A:
Q: The shareholders' equity accounts of Cullumber Ltd. on April 1, 2020, the beginning of the fiscal…
A: The weighted average number of common shares is determined by the number of shares outstanding on a…
Q: The shareholders'equity accounts of Cullumber Ltd. on April 1, 2020, the beginning of the fiscal…
A: The weighted average number of common shares can be determined by multiplying the number of shares…
Q: For a recent 2-year period, the balance sheet of Carla Company showed the following stockholders’…
A: a. 1. Par value of the common stock = $560, / 224 = $2.50.
Q: On January 1, 2019, the stockholders’ equity section of Intercontinental Corporation shows: Common…
A: Solution: Date Particulars Debit Credit March 1 Share capital A/c 660,000 To cash A/c…
Q: on December 31, 2021. Avon, Inc has the following account balances pertaining to its stockholder’s…
A: Calculation of stockholders equity on Dec 31, 2021 are as follows
Q: Wildhorse Company’s ledger shows the following balances on December 31, 2020. 7% Preferred…
A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…
Q: Accounting, Analysis, and Principles On January 1, 2020, Agassi Corporation had the following…
A: The following transactions are journalized to evaluate calculations in the records of Agassi…
Q: At the end of Malasia Inc.'s third fiscal quarter in 2020, the shareholders' equity section of the…
A: SOLUTION- TOTAL SHAREHOLDERS EQUITY- ITS REPRESENTS THE NET WORTH OF A COMPANY , WHICH IS THE…
Q: Swimtech Pools Incorporated (SPI) reported the following in its financial statements for the quarter…
A: Earnings per share = Net income/Number of common shares outstanding Return on equity = Net income…
Q: On January 1, 2022, the stockholders’ equity section of Metlock, Inc. shows common stock ($5 par…
A: Treasury stock: Shares which are bought back by the company from the open market but not retired…
Q: An analysis of stockholders' equity of Hang Corporation as of January 1, 2020 is as follows: Common…
A: Total additional paid in capital refers to a component of stock holders equity which represents the…
Q: The stockholders' equity section of Metlock, Inc. balance sheet at December 31, 2019, appears below:…
A: When the stock is issued at price more than the par value, the excess amount is credited to…
Q: Al Hamra Company issues 500,000 shares of common stock on January 1, 2020 trading at RO 0.200 per…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Morgan Sondgeroth Inc. began operations in January 2018 and reported the following results for each…
A: a. Compute the book value of the common stock at December 31, 2020.
Q: tockholders' eq
A: Shareholder's Equity Shareholders equity is that the quantity that shows however the corporate has…
Q: Sheffield Corporation had the following stockholders’ equity accounts on January 1, 2020: Common…
A: Treasury stocks are the stocks which the organization has bought back from the shareholders Under…
Q: The stockholders' equity section of the December 31, 2019, balance sheet is provided below: Common…
A: The organization can raise funds for the operation song integrity by issuing common stock, preferred…
Q: The stockholders’ equity accounts of Cheyenne Company have the following balances on December 31,…
A: Company means a form of business where the share holder invest money in business in form of shares…
Q: Notebook Company had the following transactions in 2019, its first year of operations. · Issued…
A:
Q: The stockholders’ equity accounts of Riverbed Company have the following balances on December 31,…
A: The entry for small stock dividends is recorded at the market value whereas the entry for large…
Q: Drake Co. summarized select account balances on December 31, 2020, and activity for 2020 in the…
A: Stockholders' equity: Stockholders' equity means the remaining net assets available to shareholders.…
Q: A company was organized on January 1, 2019. During its first year, the company issued the following…
A: The question is based on the concept of Financial Accounting. Preference shareholders carries the…
Q: On January 1,2022, the stockholders equity section of concord corporation shows common stock ($5…
A: Sale value of treasury stock=Number of shares×Value per share=11,000×$11=$121,000
Q: Washinton Company has the following stockerholders' equity accounts at December 31, 2020. Common…
A: Journal entries are to made to record the transactions for issue of shares, buy back of shares, etc.…
Q: The account of Retained Earnings has a credit balance of $224,000 on 1 Apr 2021 The following is…
A: On issue of equity and preferred stock, any payment in excess of par value then it is credited to…
Q: However, now assume that for this question only that the preferred shares were cumulative and…
A: Preferred Shareholders dividend for 2019 not Paid before = 300,000 x 0.90 =270,000 Preferred…
Q: The stockholders’ equity accounts of Bonita Company have the following balances on December 31,…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: Washington Company has the following stockholders’ equity accounts at December 31, 2020. Common…
A:
Q: The following data are extracted from the equity section of the balance sheet of Delta Corporation:…
A: All amounts are in dollar.
Q: The following data were taken from the accounts of BestDeals Corporation at the end of 2019:…
A: BestDeals Corporation Stockholders' Equity December 31, 2019 Paid-in capital:…
Q: On January 1, 2020, the stockholders’ equity section of Culver Corporation shows common stock ($5…
A: Date Accounts Debit Credit Mar. 1 Treasury Stock (47000*15) $705,000…
Q: he 2018 balance sheet for Guthrie Corporation revealed the following information: Common stock,…
A: Basic EPS (Earnings per share) states the investors how much of the net income of the firm was…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Lyon Company shows the following condensed income statement information for the year ended December 31, 2019: Lyon declared dividends of 6,000 on preferred stock and 17,280 on common stock. At the beginning of 2019, 10,000 shares of common stock were outstanding. On May 1, 2019, the company issued 2,000 additional common shares, and on October 31, 2019, it issued a 20% stock dividend on its common stock. The preferred stock is not convertible. Required: 1. Compute the 2019 basic earnings per share. 2. Show the 2019 income statement disclosure of basic earnings per share. 3. Draft a related note to accompany the 2019 financial statements.Raun Company had the following equity items as of December 31, 2019: Preferred stock, 9% cumulative, 100 par, convertible Paid-in capital in excess of par value on preferred stock Common stock, 1 stated value Paid-in capital in excess of stated value on common stock| Retained earnings The following additional information about Raun was available for the year ended December 31, 2019: 1. There were 2 million shares of preferred stock authorized, of which 1 million were outstanding. All 1 million shares outstanding were issued on January 2, 2016, for 120 a share. The preferred stock is convertible into common stock on a 1-for-1 basis until December 31, 2025; thereafter, the preferred stock ceases to be convertible and is callable at par value by the company. No preferred stock has been converted into common stock, and there were no dividends in arrears at December 31, 2019. 2. The common stock has been issued at amounts above stated value per share since incorporation in 2002. Of the 5 million shares authorized, 3,580,000 were outstanding at January 1, 2019. The market price of the outstanding common stock has increased slowly but consistently for the last 5 years. 3. Raun has an employee share option plan where certain key employees and officers may purchase shares of common stock at 100% of the marker price at the date of the option grant. All options are exercisable in installments of one-third each year, commencing 1 year after the date of the grant, and expire if not exercised within 4 years of the grant date. On January 1, 2019, options for 70,000 shares were outstanding at prices ranging from 47 to 83 a share. Options for 20,000 shares were exercised at 47 to 79 a share during 2019. During 2019, no options expired and additional options for 15,000 shares were granted at 86 a share. The 65,000 options outstanding at December 31, 2019, were exercisable at 54 to 86 a share; of these, 30,000 were exercisable at that date at prices ranging from 54 to 79 a share. 4. Raun also has an employee share purchase plan whereby the company pays one-half and the employee pays one-half of the market price of the stock at the date of the subscription. During 2019, employees subscribed to 60,000 shares at an average price of 87 a share. All 60,000 shares were paid for and issued late in September 2019. 5. On December 31, 2019, there was a total of 355,000 shares of common stock set aside for the granting of future share options and for future purchases under the employee share purchase plan. The only changes in the shareholders equity for 2019 were those described previously, the 2019 net income, and the cash dividends paid. Required: Prepare the shareholders equity section of Rauns balance sheet at December 31, 2019. Substitute, where appropriate, Xs for unknown dollar amounts. Use good form and provide full disclosure. Write appropriate notes as they should appear in the publisher financial statements.Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements.
- Outstanding Stock Lars Corporation shows the following information in the stockholders equity section of its balance sheet: The par value of common stock is S5, and the total balance in the Common Stock account is $225,000. There are 13,000 shares of treasury stock. Required: What is the number of shares outstanding? Use the following information for Exercises 10-58 and 10-59: Stahl Company was incorporated as a new business on January 1, 2019. The company is authorized to issue 600,000 shares of $2 par value common stock and 80,000 shares of 6%, S20 par value, cumulative preferred stock. On January 1, 2019, the company issued 75,000 shares of common stock for $15 per share and 5,000 shares of preferred stock for $25 per share. Net income for the year ended December 31, 2019, was $500,000.Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. Open the file STOCKEQ from the website for this book at cengagebrain.com. Enter the formulas in the appropriate cells on the worksheet. Then fill in the columns to show the effect of each of the selected transactions and events listed earlier. Enter your name in cell A1. Save the completed worksheet as STOCKEQ2. Print the worksheet. Also print your formulas. Check figure: Total stockholders equity balance at 12/31/12 (cell G21). 398,800.Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. In the space provided below, prepare the stockholders equity section of Chen Corporations balance sheet as of December 31, 2012. Use proper headings and provide full disclosure of all appropriate information. Chens corporate charter authorizes the issuance of 1,000 shares of preferred stock and 100,000 shares of common stock.
- Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 0 par common stock at 0, receiving cash. b. Issued 4,000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 375. The bonds are classified as a held- to-maturitv long-term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0.60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 545, including commission. p. Recorded the payment of semiannual interest on the bonds issued in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method, q. Accrued interest for three months on the Dream Inc. bonds purchased in (1). r. Pinkberry Co. recorded total earnings of 240,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39.02 per share on December 31, 2016. The investment is adjusted to fair value, using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments had a beginning balance of zero. Instructions Journalize the selected transactions. After all of the transactions for the year ended December 31, 2016, had been posted [including the transactions recorded in part (1) and all adjusting entries], the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step income statement for the year ended December 31, 2016, concluding with earnings per share. In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. (Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 2016. c. Prepare a balance sheet in report form as of December 31, 2016. Income statement data: Advertising expense 150,000 Cost of merchandise sold 3,700,000 Delivery expense 30,000 Depreciation expense -office buildings and equipment 30,000 Depreciation expensestore buildings and equipment 100,000 Dividend revenue 4,500 Gain on sale of investment 4,980 Income from Pinkberry Co. investment 76,800 Income tax expense 140,500 Interest expense 21,000 Interest revenue 2,720 Miscellaneous administrative expense 7.500 Miscellaneous selling expense 14,000 Office rent expense 50,000 Office salaries expense 170,000 Office supplies expense 10,000 Sales 5,254,000 Sales commissions 185,000 Sales salaries expense 385,000 Store supplies expense 21,000 Retained earnings and balance sheet data: Accounts payable 194,300 Accounts receivable 545,000 Accumulated depreciationoffice buildings and equipment 1,580,000 Accumulated depreciationstore buildings and equipment 4,126,000 Allowance for doubtful accounts 8,450 Available for sale investments (at cost) 260,130 Bonds payable. 5%. due 2024 500,000 Cash 246,000 Common stock, 20 par (400,000 shares authorized; 100,000 shares issued. 94,600 outstanding) 2,000,000 Dividends: Cash dividends for common stock 155,120 Cash dividends for preferred stock 100,000 Goodwill 500,000 Income tax payable 44,000 Interest receivable 1,125 Investment in Pinkberry Co. stock (equity method) 1,009,300 Investment in Dream Inc. bonds (long term) 90,000 Merchandise inventory [December 31, 2016). at lower of cost (FIFO) or market 778,000 Office buildings and equipment 4.320,000 Paid-in capital from sale of treasury stock 13,000 Excess of issue price over parcommon stock 886,800 Excess of issue price over parpreferred stock 150,000 Preferred 5% stock. 80 par (30,000 shares authorized; 20,000 shares issued] 1,600,000 Premium on bonds payable 19,000 Prepaid expenses 27,400 Retained earnings, January 1, 2016 9,319,725 Store buildings and equipment 12,560,000 Treasury stock (5,400 shares of common stock at cost of 33 per share) 178,200 Unrealized gain (loss) on available for sale investments (6,500) Valuation allowance for available for sale investments (6,500)Contributed Capital Adams Companys records provide the following information on December 31, 2019: Additional information: 1. Common stock has a 5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are outstanding. 2. Preferred stock has a 100 par value, 3,000 shares are authorized, 800 shares have been issued and are outstanding. Two hundred shares have been subscribed at 120 per share. The stock pays an 8% dividend, is cumulative, and is callable at 130 per share. 3. Bonds payable mature on January 1, 2023. They carry a 12% annual interest rate, payable semiannually. Required: Prepare the Contributed Capital section of the December 31, 2019, balance sheet for Adams. Include appropriate parenthetical notes.Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 20 par common stock at 30, receiving cash. b. Issued 4,000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 375. The bonds are classified as a heldtomaturity long-term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0.60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 45, including commission. p. Recorded the payment of semiannual interest on the bonds issued in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method. q. Accrued interest for three months on the Dream Inc. bonds purchased in (l). r. Pinkberry Co. recorded total earnings of 240,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39.02 per share on December 31, 2016. The investment is adjusted to fair value, using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments had a beginning balance of zero. Instructions 1. Journalize the selected transactions. 2. After all of the transactions for the year ended December 31, 2016, had been posted [including the transactions recorded in part (1) and all adjusting entries], the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step income statement for the year ended December 31, 2016, concluding with earnings per share. In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. (Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 2016. c. Prepare a balance sheet in report form as of December 31, 2016.
- Calculating the Number of Shares Issued Castalia Inc. issued shares of its $0.80 par value common stock on September 4, 2019, for $8 per share. The Additional Paid-In Capital-Common Stock account was credited for 5612,000 in the journal entry to record this transaction. Required: How many shares were issued on September 4, 2019?Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 20 par common stock at 30, receiving cash. b. Issued 4, 000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 37 5. The bonds are classified as a held-to-maturity long -term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0 .60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 45, including commission. p. Recorded the payment of semiannual interest on the bonds issue d in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method . q. Accrued interest for three months on the Dream Inc. bonds purchased in (I). r. Pinkberry Co. recorded total earnings of 240 ,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39. 02 per share on December 31, 2016. The investment is adjusted to fair value , using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments h ad a beginning balance of zero. Instructions 1. Journalize the selected transactions. 2. After all of the transaction s for the year ended December 31, 201 6, had been poste d [including the transactions recorded in part (1) and all adjusting entries), the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step in come statement for the year ended December 31, 201 6, concluding with earnings per share . In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. ( Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 20 6. c. Prepare a balance sheet in report form as of December 31, 2016.Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following equity accounts and balances: During 2020, Stanley Utilities engaged in the following transactions involving its equity accounts: Sold 3,300 shares of common stock for $15 per share. Sold 1,000 shares of 12%, $100 par preferred stock at $105 per share. Declared and paid cash dividends of $8,000. Repurchased 1,000 shares of treasury stock (common) for $38 per share. Sold 400 of the treasury shares for $42 per share. Required: Prepare the journal entries for Transactions a through e. Assume that 2020 net income was $87,000. Prepare a statement of stockholders equity at December 31, 2020.