M8-25. Stock and Treasury Stock Balances Following is the stockholders' equity section from the The Walt Disney Company balance sheet. Stockholders' equity, $ millions Sep. 29, 2018 Sep. 30, 2017 Preferred stock. $4 $ Common stock, $0.01 par value, Authorized-4.6 billion shares, Issued-2.9 billion shares Retained earnings Accumulated other comprehensive loss. 36,779 82,679 (3,097) 36,248 72,606 (3,528) Stockholders' Equity subtotal before Treasury Stock, Total. Treasury stock, at cost, 1.4 billion shares 116,361 105,326 (67,588) (64,011) Total Disney Shareholders' equity Noncontrolling interests 48,773 4,059 41,315 3,689 Total equity.. . . $ 52,832 $ 45,004 a. How many shares are issued at September 29, 2018? The par value of these shares is $0.01 per share Where is this information reported on the balance sheet? b. How many shares are outstanding at 2018 fiscal year-end? C. Determine the average price at which Disney issued its common stock. a. Use the treasury stock account to determine the average price Disney paid when it repurchased its common shares.

M8-25. Stock and Treasury Stock Balances Following is the stockholders' equity section from the The Walt Disney Company balance sheet. Stockholders' equity, $ millions Sep. 29, 2018 Sep. 30, 2017 Preferred stock. $4 $ Common stock, $0.01 par value, Authorized-4.6 billion shares, Issued-2.9 billion shares Retained earnings Accumulated other comprehensive loss. 36,779 82,679 (3,097) 36,248 72,606 (3,528) Stockholders' Equity subtotal before Treasury Stock, Total. Treasury stock, at cost, 1.4 billion shares 116,361 105,326 (67,588) (64,011) Total Disney Shareholders' equity Noncontrolling interests 48,773 4,059 41,315 3,689 Total equity.. . . $ 52,832 $ 45,004 a. How many shares are issued at September 29, 2018? The par value of these shares is $0.01 per share Where is this information reported on the balance sheet? b. How many shares are outstanding at 2018 fiscal year-end? C. Determine the average price at which Disney issued its common stock. a. Use the treasury stock account to determine the average price Disney paid when it repurchased its common shares.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 57E: Outstanding Stock Lars Corporation shows the following information in the stockholders equity...

See similar textbooks

Similar questions

Treasury Stock, Cost Method Bush-Caine Company reported the following data on its December 31, 2018, balance sheet: The following transactions were reported by the company during 2019: 1. Reacquired 200 shares of its preferred stock at 57 per share. 2. Reacquired 500 shares of its common stock at 16 per share. 3. Sold 100 shares of preferred treasury stock at 58 per share. 4. Sold 200 shares of common treasury stock at 17 per share. 5. Sold 100 shares of common treasury stock at 9 per share. 6. Retired the shares of common stock remaining in the treasury. The company maintains separate treasury stock accounts and related additional paid-in capital accounts for each class of stock. Required: 1. Prepare the journal entries required to record the treasury stock transactions using the cost method. 2. Assuming the company earned a net income in 2019 of 30.000 and declared and paid dividends of 10,000, prepare the shareholders equity section of its balance sheet at December 31, 2019.
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.
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.
E11-3 During its first year of operations, Foyle Corporation had the following transactions pertaining to its common stock. Jan. 10 Issued 70,000 shares for cash at $5 per share. July 1 Issued 40,000 shares for cash at $7 per share. Instructions (a) Journalize the transactions, assuming that the common stock has a par value of $5 per share. (b) Journalize the transactions, assuming that the common stock is no-par with a stated value of $1 per share.
P11-3B On December 31, 2013, Peabody Company had 820,000 shares of $10 par common stock issued and outstanding. At December 31, 2013, stockholders’ equity had theamounts listed here.Common Stock $8,200,000Additional Paid-in Capital 2,460,000Retained Earnings 1,600,000Transactions during 2014 and other information related to stockholders’ equity accountswere as follows.1. On January 18, 2014, issued at $107 per share 80,000 shares of $100 par value, 7%cumulative preferred stock.2. On March 23, 2014, reacquired 20,000 shares of its common stock for $15 pershare.3. On May 15, 2014, declared the yearly cash dividend on preferred stock, payable June12, 2014, to stockholders of record on May 31, 2014.4. On June 8, 2014, declared a cash dividend of $2.00 per share on the common stockoutstanding, payable on July 10, 2014, to stockholders of record on July 1, 2014.5. Net income for the year was $2,900,000.InstructionsPrepare the stockholders’ equity section of Peabody’s balance sheet at…
E15-1 (LO1) Recording the Issuances of Common Stock During its first year of operations, Collin Raye Corporation had the following transactions pertaining to its common stock. Date No. of Shares Issued Issued for Amount Jan. 10 80,000 Cash $ 6.00 per share Mar. 1 5,000 To attorneys in payment of a bill for services rendered in helping the company to incorporate 35,000 in total Jul. 1 30,000 Cash 8.00 per share Sept. 1 60,000 Cash 10.00 per share Instructions: (a) Prepare the journal entries for these transactions, assuming that the common stock has a par value of $5 per share.
E11-11 The stockholders’ equity section of Haley Corporation at December 31 is as follows. HALEY CORPORATION Balance Sheet (partial) Paid-in capital Preferred stock, cumulative, 10,000 shares authorized, 6,000 shares issued and outstanding $ 300,000 Common stock, no par, 750,000 shares authorized, 600,000 shares issued 1,200,000 Total paid-in capital 1,500,000 Retained earnings 1,858,000 Total paid-in capital and retained earnings 3,358,000 Less: Treasury stock (10,000 common shares) 64,000 Total stockholders’ equity $3,294,000 Instructions From a review of the stockholders’ equity section, as chief accountant, write a memo to the president of the company answering the following questions. (a) How many shares of common stock are outstanding? (b) Assuming there is a stated value, what is the stated value of the common stock? (c) What is the par value of the preferred stock? (d) If the annual dividend on preferred stock is $30,000, what is the dividend rate on preferred stock? (e) If…
P15-1 (LO1,2,3,4) Equity Transactions and Statement Preparation On January 5, 2020, Phelps Corporation received a charter granting the right to issue common and preferred stock as provided below: Cumulative and nonparticipating preferred stock: Number of shares authorized 5,000 shares Par value $ 100 per share Dividend rate 8% Common stock: Number of shares authorized 50,000 shares Par value $ 10 per share It then completed these transactions. Jan. 11 Issued common stock Number of shares 20,000 Issue price per share $ 16.00 Feb. 1 Issued preferred stock to Sanchez Corp. for assets with the following values: Fair value of equipment $ 50,000 Fair value of a factory building $ 160,000 Appraised value of land $ 270,000 Number of shares issued…
Commons, Inc. provides the following information for 2018: Net income $ 38 comma 000$38,000 Market price per share of common stock $ 18.00$18.00/share Dividends paid $ 0.85$0.85/share Common stock outstanding at Jan. 1, 2018 120 comma 000120,000 shares Common stock outstanding at Dec. 31, 2018 170 comma 000170,000 shares The company has no preferred stock outstanding. Calculate the dividend yield for common stock. (Round your answer to two decimal places.) A. 4.964.96% B. 3.283.28% C. 4.724.72% D. 1.441.44%
BE4-8 In 2020, Hollis Corporation reported net income of $1,000,000. It declared and paid preferred stock dividends of $250,000. During 2020, Hollis had a weighted average of 190,000 common shares outstanding. Compute Hollis's 2020 earnings per share.
P11-2B The stockholders’ equity accounts of Warden Corporation on January 1, 2014,were as follows.Preferred Stock (9%, $50 par cumulative, 10,000 shares authorized) $ 200,000Common Stock ($1 stated value, 2,000,000 shares authorized) 1,000,000Paid-in Capital in Excess of Par Value—Preferred Stock 16,000Paid-in Capital in Excess of Stated Value—Common Stock 1,400,000Retained Earnings 1,716,000Treasury Stock (8,000 common shares) 20,000During 2014 the corporation had these transactions and events pertaining to its stockholders’ equity.Feb. 1 Issued 20,000 shares of common stock for $160,000.Nov. 10 Purchased 4,000 shares of common stock for the treasury at a cost of$16,000.Nov. 15 Declared a 9% cash dividend on preferred stock, payable December 15.Dec. 1 Declared a $0.30 per share cash dividend to common stockholders ofrecord on December 15, payable December 31, 2014.Journalize stocktransactions, post, andprepare paid-in capitalsection.(LO 2, 4, 7), AP(c) Tot. paid-in capital…
P15-2B (Treasury Stock Transactions and Presentation) LLP Company had the following stock holders’ equity as of January 1, 2014.Common stock, $1 par value, 120,000 shares issued $ 120,000Paid-in capital in excess of par—common stock 833,000Retained earnings 408,000 Total stockholders’ equity $1,361,000During 2014, the following transactions occurred.Feb. 16 LLP repurchased 5,000 shares of treasury stock at a price of $15 per share.Mar. 8 200 shares of treasury stock repurchased above were reissued at $16 per share.Apr. 11 800 shares of treasury stock repurchased above were reissued at $12 per share.May 8 2,000 shares of treasury stock repurchased above were reissued at $18 per share.Instructions(a) Prepare the journal entries to record the treasury stock transactions in 2014, assuming LLP uses the cost method.(b) Prepare the stockholders’ equity section as of June 30, 2014. Net income for the first 6 months of 2014 was $261,000.P15-3B (Equity Transactions and Statement Preparation)…