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3. Please refer to the equity section of the balance sheet shown as follows: Preferred stock $100 par, 10,000 shares authorized, 1,000 shares issued $100,000 $1 par, 500,000 shares authorized,? shares issued Common stock Paid-in capital in excess of par -common stock Retained earnings Total stockholders' equity The amount shown for earnings would be called a(n): A) net loss. B) earnings shortfall. C) retained earnings deficit. D) loss on sale of stock. 20,000 350,000 (74,000) $396,000 Retained 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: Preferred stock $100 par, 10,000 shares authorized, 1,000 shares issued $100,000 $1 par, 500,000 shares authorized,? shares issued Common stock Paid-in capital in excess of par -common stock Retained earnings Total stockholders' equity The amount shown for earnings would be called a(n): A) net loss. B) earnings shortfall. C) retained earnings deficit. D) loss on sale of stock. 20,000 350,000 (74,000) $396,000 Retained 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.

College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter20: Corporations: Organization And Capital Stock
Section: Chapter Questions
Problem 4CE: Prepare the stockholders equity section of the balance sheet based on the following account...
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3. Please refer to the equity section of the balance sheet shown as follows: Preferred stock Common stock Paid-in capital in excess of par -common stock $100 par, 10,000 shares authorized, 1,000 shares issued $100,000 $1 par, 500,000 shares authorized,? shares issued Retained earnings Total stockholders' equity The amount shown for earnings would be called a(n): A) net loss. B) earnings shortfall. C) retained earnings deficit. D) loss on sale of stock. 20,000 350,000 (74,000) $396,000 Retained 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.
Transcribed Image Text:3. Please refer to the equity section of the balance sheet shown as follows: Preferred stock Common stock Paid-in capital in excess of par -common stock $100 par, 10,000 shares authorized, 1,000 shares issued $100,000 $1 par, 500,000 shares authorized,? shares issued Retained earnings Total stockholders' equity The amount shown for earnings would be called a(n): A) net loss. B) earnings shortfall. C) retained earnings deficit. D) loss on sale of stock. 20,000 350,000 (74,000) $396,000 Retained 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.
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In additin to the above question:

  1. Prepare the company’s Stockholders equity section of the balance sheet at December 31, 2021. (Hint!!!!!!!) The following information must be clearly stated/shown:
    • 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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6. 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 journal entries and statement of owner's equity based on the following information. A. Issued 60% _shares of class A common stock. Stock has par value of $48.00 per share and was issued at $ 105.00 per share. (Please refer to table below and use only the info in line with your first name initial in the blank/underlined space). B. Issued 60% shares of no-par class B stock. Issue Price $98.00 C. Issued 20% shares of preferred stock at par value. Par Value is $168.00 D. Exchanged 40% shares of class A common stock for Office Furniture and Equipment with an appraised value of $4,000,000.00 and Motor Truck with an appraised value of $ 10.000.00.00 E. Earned Net income $ 1,450,000.00 F. Declared interim dividends for preferred shareholders as well as $.80 per share to common stockholders. Using the info above and as a guide: A. 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. ● ● B. Prepare the company's Stockholders equity section of the balance sheet at December 31, 2021The following information must be clearly stated/shown: 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.
Transcribed Image Text:6. 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 journal entries and statement of owner's equity based on the following information. A. Issued 60% _shares of class A common stock. Stock has par value of $48.00 per share and was issued at $ 105.00 per share. (Please refer to table below and use only the info in line with your first name initial in the blank/underlined space). B. Issued 60% shares of no-par class B stock. Issue Price $98.00 C. Issued 20% shares of preferred stock at par value. Par Value is $168.00 D. Exchanged 40% shares of class A common stock for Office Furniture and Equipment with an appraised value of $4,000,000.00 and Motor Truck with an appraised value of $ 10.000.00.00 E. Earned Net income $ 1,450,000.00 F. Declared interim dividends for preferred shareholders as well as $.80 per share to common stockholders. Using the info above and as a guide: A. 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. ● ● B. Prepare the company's Stockholders equity section of the balance sheet at December 31, 2021The following information must be clearly stated/shown: 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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