For the current year ended, ABC had the following transactions: ​ - Issued 10,000 shares of $2.00 par value common stock for $12.00 per share. - Issued 3,000 shares of $50 par value 6% preferred stock for $70 per share. - Purchased 1,000 shares of previously issued common stock for $15.00 per share. - Reported net income of $200,000. - Declared and paid a total dividend of $40,000. ​ Assume that retained earnings had a beginning balance of $75,000. The company does not have any stock outstanding as of the beginning of the current year. ​ $15,000 Drag answer here $235,000 Drag answer here $150,000 Drag answer here $60,000 Drag answer here $20,000 Drag answer here $330,000 Drag answer here $100,000 Drag answer here $550,000 Drag answer here Treasury stock Retained earnings Preferred stock Total paid-in capital Excess of issue price over par (common) Total stockholders' equity Common stock Excess of issue price over par (preferred)

Q: On October 10, the stockholders' equity section of Sherman Systems appears as follows. Common…

A: Working Notes: 1. Treasury stock A/c  = shares purchase * per share rate  = (5000 shares *$25) =…

Q: Instructions: prepare the journal entries on above transactions.

A: Calculation of Dividend Paid :- Shares outstanding at the beginning 60000 Add : New issue…

Q: Beta Co. sold 10,000 shares of common stock, which has a par value of $25, for $27 per share.The…

A: Stockholders' equity section of a balance sheet includes paid in capital and retained earnings.

Q: July 3, 20x2, Yami issued 150,000 of its ordinary shares for P1,950,000. A 5% share dividend was…

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

Q: Data relating to the shareholders’ equity of ABC Co. during December 31 are as follows: 8%…

A: Given that, Ordinary share, 26000 shares = P1,040,000  Retained earnings = P7,000,000  Treasury…

Q: Andam Corporation has outstanding 60,000 shares of 5% preference shares with a P50 par value and…

A: Cumulative preference shares are those preference shares whose dividend amount is got accumulated in…

Q: On January 1, 20X1, Browning Corporation had 75,000 shares of $1 par value common stock issued and…

A: We have the following information: On January 1 20X1: Browning Corporation had 75,000 shares of $1…

Q: York’s outstanding stock consists of 80,000 shares of noncumulative 7.5% preferred stock with a $5…

A: Given is: Preference shares = 80,000 Par value = $5 Preference dividend rate = 7.5% Total preference…

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

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

Q: On January 1, Crane Corporation had 94,500 shares of no-par common stock issued and outstanding. The…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Green Planet Corp. has (a) 5,000 shares of cumulative 10% preferred stock with a $2 par value and…

A: Total dividend to be paid to preferred holders=Number of share×Par value×10%=5,000×$2×10%=$1,000

Q: Diaz Corporation, a distributor of exercise equipment, has the following outstanding shares: 18,000…

A: Dividend per share is computed by dividing the total dividends by the number of shares outstanding.

Q: On January 1, Riverbed Corp had 62,300 shares of no-par common stock issued and outstanding. The…

A: Journal is a place where accounting transactions are listed in the book keeping system before ledger…

Q: Halverstein Company's outstanding stock consists of 14,000 shares of cumulative 5% preferred stock…

A: Cumulative preference shareholders are those shareholders on which dividend will be paid in next…

Q: Green Planet Corp. has (a) 5,800 shares of noncumulative 12% preferred stock with a $2 par value and…

A: Annual dividend on preferred stock = Number of preferred shares × Par value per preferred share ×…

Q: Sweet Company’s outstanding stock consists of 1,000 shares of cumulative 5% preferred stock with a…

A: Dividend on cumulative preference shares is accumulated over the years, It means cumulative…

Q: Helu Corporation was organized on January 1, with an authorization of 1,000,000 ordinary shares with…

A: Shares of the company can be issued at par value or value more than par value or less than par…

Q: Sheffield Corp.'s balance sheet reported the following: Capital stock outstanding, 4,000 shares,…

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

Q: The accounts below appear in the current year-end trial balance of Trogss Company: Accounts payable…

A: Net income = sales - total expenses = 16000000 - 12480000 = 3520000 Ending retained earnings balance…

Q: York's outstanding stock consists of 75,000 shares of noncumulative 6.0% preferred stock with a $5…

A: The question is based on the concept of Financial Accounting. When the dividend is declared and paid…

Q: DEF Co. earned income of $750,000 for the fiscal year ended Dec 31. At the beginning of that year…

A: Earning Per Share (EPS) represents the net income that each common shareholder is earning from the…

Q: York's outstanding stock consists of 60,000 shares of cumulative 8.0% preferred stock with a $5 par…

A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…

Q: Bramble Corp.'s balance sheet reported the following: Capital stock outstanding, 5,000 shares, par…

A: The treasury stock is the purchase of its own share by the company.

Q: Nylah Corporation's balance sheet reported the following: Capital stock outstanding, 5,000 shares,…

A: Treasury stock: These are the own shares purchased by the issuing company from the open market.…

Q: Green Planet Corp. has (a) 5,000 shares of noncumulative 10% preferred stock with a $2 par value and…

A: Solution: i) Preference Shares are one of the financial instrument, preferred shares are commonly…

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: Sweet Company’s outstanding stock consists of 1,800 shares of cumulative 5% preferred stock with a…

A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…

Q: Kosmier Company has outstanding 500,000 shares of $50 par value common stock that originallysold for…

A: Given information is: Kosmier Company has outstanding 500,000 shares of $50 par value common stock…

Q: The company was organized on January 1, Year 1. The firm was authorized to issue 500,0O00 shares of…

A: Shareholder equity means the amount that belong to the owner of the company i.e. share holder.…

Q: :(a) Purchased 400 shares of capital stock to be held as treasury stock, paying $60 per share.(b)…

A:

Q: Helu Corporation was organized on January 1, with an authorization of 1,000,000 ordinary shares with…

A: Treasury stock: Shares which are bought back by the company from the open market but not retired…

Q: On January 1, Guillen Corporation had 95,000 shares of no-par common stock issued and outstanding.…

A: Dividend can be defined as the profit distribution done by a corporation to its shareholders, who…

Q: On January 1, Guillen Corporation had 95,000 shares of no-par common stock issued and outstanding.…

A: Journal entry: A journal entry is used to record day-to-day transactions of the business by debiting…

Q: On January 1, Lorain Corporation had 2,000 shares of $5 par common stock authorized and outstanding.…

A: Treasury stock: Treaseury stock are the shares which are bought back by the company from the open…

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…

Q: Green Planet Corp. has (a) 5,600 shares of cumulative 11% preferred stock with a $2 par value and…

A: Cash dividends:   The amount of cash provided by a corporation out of its distributable profits to…

Q: On January 1, Year 1, a company had the following transactions: Issued 10,000 shares of $2.00 par…

A: Cumulative Dividend - Cumulative Preferred shares has right of dividend every year. If in any year…

Q: Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31,…

A: They are the first step to record the financial transactions in the books of accounts that has dual…

Q: Helu Corporation was organized on January 1, with an authorization of 1,000,000 ordinary shares with…

A: Share premium is the amount received on issue of shares above par value.

Q: Monsoon Company carried out the following transactions related to its common and preferred shares.…

A: Preference shares, also known as preferred stock, are securities that pay dividends to owners before…

Q: OM, Inc. was organized on January 1, 20X7. The firm was authorized to issue 1,000,000 shares of $2…

A: The firm authorized to issue 1,000,000 shares, with par value of $2

Q: Triad declared and paid a P25,000 cash dividend on December 15, 2008. If the company's dividends in…

A: Dividend paid = P25,000 Arrears = P6,000 Dividend of this year = P19,000

Q: On January 1, Year 1, a company had the following transactions: Issued 10,000 shares of $2 par…

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

Q: Green Planet Corp. has 5,000 shares of noncumulative 10% preferred stock with a $2 par value and…

A: Calculate the annual dividend for preferred shareholders. Dividend to Preferred shareholders =…

Q: On January 1, 2007, Part Corporation had issued and outstanding 10,000 shares of P10 par common…

A: The dividend can be paid in cash form or shares form. The stock dividend less than 25% is issued at…

Q: Andam Corporation has outstanding 60,000 shares of 5% preference shares with a P50 par value and…

A: The details of capital structure of company is given. Required  Calculate total dividend to be…

Q: Raphael Corporation’s balance sheet shows the following stockholders’ equity section.…

A: SOLUTION- THE DIVIDEND IS TO BE PAID TO SHAREHOLDERS FROM THE RETAINING EARNING S . AT FIRST ,…

Q: Diaz Corporation, a distributor of exercise equipment, has the following outstanding shares: 18,000…

A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…

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.