Required information (The following information applies to the questions displayed below.) Donnie Hilfiger has two classes of stock authorized: $1 par preferred and $0.01 par value common. As of the beginning of 2021, 100 shares of preferred stock and 2,900 shares of common stock have been issued. The following transactions affect stockholders' equity during 2021: March May July October 15 Issue 300 shares of preferred stock for $34 per share. December 1 Declare a cash dividend on both conmon and preferred stock of $8.80 per share to alt 1 Issue 1,200 shares of comnon stock for $31 per share. 15 Purchase 500 shares of treasury stock for $24 per share. 10 Resell 300 shares of treasury stock purchased on May 15 for $29 per share. stockholders of record on December 15. (Hint: Dividends are not paid on treasury stock. ) December 31 Pay the cash dividends declared on Decenber 1. Donnie Hilfiger has the following beginning balances in its stockholders' equity accounts on January 1, 2021: Preferred Stock, $100; Common Stock, $29: Additional Paid-in Capital, $65,000; and Retained Earnings, $25,000. Net income for the year ended December 31, 2021, is $9,700. Taking into consideration the beginning balances on January 1, 2021 and all the transactions during 2021, respond to the following for Donnie Hilfiger:
Required information (The following information applies to the questions displayed below.) Donnie Hilfiger has two classes of stock authorized: $1 par preferred and $0.01 par value common. As of the beginning of 2021, 100 shares of preferred stock and 2,900 shares of common stock have been issued. The following transactions affect stockholders' equity during 2021: March May July October 15 Issue 300 shares of preferred stock for $34 per share. December 1 Declare a cash dividend on both conmon and preferred stock of $8.80 per share to alt 1 Issue 1,200 shares of comnon stock for $31 per share. 15 Purchase 500 shares of treasury stock for $24 per share. 10 Resell 300 shares of treasury stock purchased on May 15 for $29 per share. stockholders of record on December 15. (Hint: Dividends are not paid on treasury stock. ) December 31 Pay the cash dividends declared on Decenber 1. Donnie Hilfiger has the following beginning balances in its stockholders' equity accounts on January 1, 2021: Preferred Stock, $100; Common Stock, $29: Additional Paid-in Capital, $65,000; and Retained Earnings, $25,000. Net income for the year ended December 31, 2021, is $9,700. Taking into consideration the beginning balances on January 1, 2021 and all the transactions during 2021, respond to the following for Donnie Hilfiger:
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN:9781305666160
Author:James A. Heintz, Robert W. Parry
Publisher:James A. Heintz, Robert W. Parry
Chapter20: Corporations: Organization And Capital Stock
Section: Chapter Questions
Problem 1MP: Stockholders equity accounts and other related accounts of Gonzales Company as of January 1, 20--,...
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Transcribed Image Text:Required:
1. Prepare the stockholders' equity section of the balance sheet as of December 31, 2021. (Amounts to be deducted should be
indicated by a minus sign.)
hts
Answer Is complete but not entirely correct.
DONNIE HILFIGER
Balance Sheet
(Stockholders' Equity Section)
December 31, 2021
Stockholders' equity:
Preferred stock
Os
400
Common stock
41
Additional paid-in capital
113,588
Total paid-in capital
114,029
Retained earnings
145,289 O
Treasury stock
(4,800)
Total stockholders' equity
$ 254,518
Transcribed Image Text:Required information
(The following information applies to the questions displayed below.)
Donnie Hilfiger has two classes of stock authorized: $1 par preferred and $0.01 par value common. As of the beginning of
2021, 100 shares of preferred stock and 2,900 shares of common stock have been issued. The following transactions
affect stockholders' equity during 2021:
March
May
July
October 15 Issue 300 shares of preferred stock for $34 per share.
December 1 Declare a cash dividend on both common and preferred stock of $0.80 per share to all
1 Issue 1,200 shares of comnon stock for $31 per share.
15 Purchase 500 shares of treasury stock for $24 per share.
10 Resell 300 shares of treasury stock purchased on May 15 for $29 per share.
stockholders of record on Decenber 15. (Hint: Dividends are not paid on treasury stock. )
December 31 Pay the cash dividends declared on Decenber 1.
Donnie Hilfiger has the following beginning balances in its stockholders' equity accounts on January 1, 2021: Preferred
Stock, $100; Common Stock, $29; Additional Paid-in Capital, $65,000; and Retained Earnings, $25,000. Net income for
the year ended December 31, 2021, is $9,700.
Taking into consideration the beginning balances on January 1, 2021 and all the transactions during 2021, respond to the
following for Donnie Hilfiger:
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