View previous attemptCheck my workRequired information[The following information applies to the questions displayed below.)Bacon Inc. has the following stockholders' equity section in its May 31, 2019, comparative balance sheets:May 31, 2019Nor11 30, 2019Paid-in eapitaltPreferred atock, $120 par value, 6, eumulative, 100,000 sharesauthorired, 90,000 shares ienued and outatandingCommon atock, $6 par value, 600,000 hares authorized, 390,000 and370, 000 shares lesued, respectivelyAdditional paid-in capitalRetained earningaLesst Treanury common atock, at cost; 18,000 shares and 17,000 shares,respectivelyTotal stockholdera equity$10,800,000010,800,00014,750, 00012,150,0002,220,00014,300,00011,074,0001,532,000)$37.562,000l56,000)F-1. Assume that on June 1 the market value of the common stock was $38 per share and that the board of directors declared a 5%stock dividend on the issued shares of common stock. Use the horizontal model to show the issuance of the stock dividend. Indicatethe financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.)Balance SheetRevStockholders' EquityNet IncomeAssetsLiabilities+ Retained earnings+ Common stock+ Additional paid-in capital

Stock dividends - additional stocks issued to existing common stockholders with no distribution of…

Required information [The following information applies to the questions displayed below) Bacon Inc. has the following stockholders' equity section in its May 31, 2019, comparative balance sheets: May 31, 2019 Apr11 30,2019 Paid-in eapitals Preferred atock, $120 par value, 6, eumulative, 100,000 shares authorired, 90,000 ahare ienued and outatanding Common atock, $6 par value, 600,000 mhares authorized, 390,000 and 370,000 shares lesued, respectively Additional paid-in capital Retained earninga Less Treanury common atock, at cost; 18,000 shares and 17,000 shares, respectively Total etockholders equity 610,800,000 010, 800,000 14,750,000 12,150,000 2,220,000 14,300,000 11,074, 000 1,632,000) B37,562,000 l56,000) F-1. Assume that on June 1 the market value of the common stock was $38 per share and that the board of directors declared a 5% stock dividend on the issued shares of common stock. Use the horizontal model to show the issuance of the stock dividend. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.)

Required information [The following information applies to the questions displayed below) Bacon Inc. has the following stockholders' equity section in its May 31, 2019, comparative balance sheets: May 31, 2019 Apr11 30,2019 Paid-in eapitals Preferred atock, $120 par value, 6, eumulative, 100,000 shares authorired, 90,000 ahare ienued and outatanding Common atock, $6 par value, 600,000 mhares authorized, 390,000 and 370,000 shares lesued, respectively Additional paid-in capital Retained earninga Less Treanury common atock, at cost; 18,000 shares and 17,000 shares, respectively Total etockholders equity 610,800,000 010, 800,000 14,750,000 12,150,000 2,220,000 14,300,000 11,074, 000 1,632,000) B37,562,000 l56,000) F-1. Assume that on June 1 the market value of the common stock was $38 per share and that the board of directors declared a 5% stock dividend on the issued shares of common stock. Use the horizontal model to show the issuance of the stock dividend. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.)

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 16E: Contributed Capital Adams Companys records provide the following information on December 31, 2019:...

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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.
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