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Roberto Corporation was organized on January 1, 2018. The firm was authorized to issue 100,000 shares of OMR 5 par common stock . During 2018, Roberto had the following transactions relating to shareholders' equity: 1. Issued 10,000 common stock at OMR 7 per share. 2. Issued 20,000 common stock at OMR 8 per share. 3. Reported a net income of OMR 100,000. 4. Paid dividends of OMR 50,000. 5. Purchased 3,000 treasury stock at OMR 10 (part of the 20,000 stock issued at OMR 8). Required • Prepare the journal entries for the above transactions. • Prepare the shareholders' equity section of Roberto's statement of financial position as of December 31, 2018

Financial Accounting: The Impact on Decision Makers

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter11: Stockholders' Equity

Section: Chapter Questions

Problem 11.6E

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Exercise 6.4

Roberto Corporation was organized on January 1, 2018. The firm was authorized to issue 100,000 shares of OMR 5 par common stock . During 2018, Roberto had the following transactions relating to shareholders' equity:

1. Issued 10,000 common stock at OMR 7 per share.

2. Issued 20,000 common stock at OMR 8 per share.

3. Reported a net income of OMR 100,000.

4. Paid dividends of OMR 50,000.

5. Purchased 3,000 treasury stock at OMR 10 (part of the 20,000 stock issued at OMR 8).

Required

• Prepare the journal entries for the above transactions.

• Prepare the shareholders' equity section of Roberto's statement of financial position as of December 31, 2018

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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Exercise 1-41 Stockholders Equity OBJECTIVE o On January 11 2019, Mulcahy Manufacturing Inc., a newly formed corporation, issued 1,000 shares of common stock in exchange for $150,000 cash. No other shares were issued during 2019, and no shares were repurchased by the corporation. On November 1, 2019, the corporations major stockholder sold 300 shares to another stockholder for $50000. The corporation reported net income of $37,500 for 2019. Required: Prepare the stockholders equity section of Mulcahys balance sheet at December 31, 2019.
Entries for stock dividends Alpine Energy Corporation has 1,500,000 shares of 40 par common stock outstanding. On August 2, Alpine Energy declared a 4% stock dividend to be issued October 8 to stockholders of record on September 15. The market price of the stock was 70 per share on August 2. Journalize the entries required on August 2, September 15, and October 8.
Entries for selected corporate transactions Morrow Enterprises Inc. manufactures bathroom fixtures. Morrow Enterprises stockholders equity accounts, with balances on January 1, 20Y6, are as follows: Common Stock, 20 stated value (500,000 shares authorized, 375,000 shares issued) 7,500,000 Paid-In Capital in Excess of Stated ValueCommon Stock 825,000 Retained Earnings 33,600,000 Treasury Stock (25,000 shares, at cost 450,000 The following selected transactions occurred during the year: Jan. 22. Paid cash dividends of 0.08 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for 28,000. Apr. 10. Issued 75,000 shares of common stock for 24 per share. June 6. Sold all of the treasury stock for 26 per share. July 5. Declared a 4% stock dividend on common stock, to be capitalized at the market price of the stock, which is 25 per share. Aug. 15. Issued shares of stock for the stock dividend declared on July 5. Nov. 23. Purchased 30,000 shares of treasury stock for 19 per share. Dec. 28. Declared a 0.10-per-share dividend on common stock. 31. Closed the credit balance of the income summary account, 1,125,000. 31. Closed the two dividends accounts to Retained Earnings. Instructions 1. Enter the January 1 balances in T accounts for the stockholders equity accounts listed. Also prepare T accounts for the following: Paid-In Capital from Sale of Treasury Stock; Stock Dividends Distributable; Stock Dividends; Cash Dividends. 2. Journalize the entries to record the transactions, and post to the eight selected accounts. 3. Prepare a retained earnings statement for the year ended December 31, 20Y6. 4. Prepare the Stockholders Equity section of the December 31, 20Y6, balance sheet.

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