Statement of Stockholders' Equity For the Years Ended December 31, 2020 and 2019 Total Preferred Common Additional Treasury Retained Stockholders' Stock Stock Paid-In Stock Earnings $ 2,000,000 Equity 4,840,000 Balance December 31, 2019 2$ 750,000 2$ 110,000 $ 2,420,000 $ (440,000) Net income 895,000 895,000 Common stock issued 200,000 100,000 300,000 Preferred stock issued (80,000) (100,000) Cash dividends (80,000) (100,000) Stock dividends Treasury stock acquired Balance December 31, 2020 $ 750,000 $ 310,000 $ 2,520,000 $ (440,000)| $ 2,715,000 5,855,000 See Notes to the Financial Statements Required 1 What was the total dollar value received for issuing shares of common stock in 2020? Page 1. Page 2 2 Explain why part of the issuance of common stock is reported in the common stock account and part of it is recorded to Additional paid-in capital account? 3 At the end of 2019 there were 180,000 shares outstanding. At the end of 2020 there were 580,000 shares outstanding. Assume the newly issued shares of common stock were issued on December 31, 2020. Calculate earnings per share (EPS) 4 Explain what the EPS for Frost Company indicates?
Statement of Stockholders' Equity For the Years Ended December 31, 2020 and 2019 Total Preferred Common Additional Treasury Retained Stockholders' Stock Stock Paid-In Stock Earnings $ 2,000,000 Equity 4,840,000 Balance December 31, 2019 2$ 750,000 2$ 110,000 $ 2,420,000 $ (440,000) Net income 895,000 895,000 Common stock issued 200,000 100,000 300,000 Preferred stock issued (80,000) (100,000) Cash dividends (80,000) (100,000) Stock dividends Treasury stock acquired Balance December 31, 2020 $ 750,000 $ 310,000 $ 2,520,000 $ (440,000)| $ 2,715,000 5,855,000 See Notes to the Financial Statements Required 1 What was the total dollar value received for issuing shares of common stock in 2020? Page 1. Page 2 2 Explain why part of the issuance of common stock is reported in the common stock account and part of it is recorded to Additional paid-in capital account? 3 At the end of 2019 there were 180,000 shares outstanding. At the end of 2020 there were 580,000 shares outstanding. Assume the newly issued shares of common stock were issued on December 31, 2020. Calculate earnings per share (EPS) 4 Explain what the EPS for Frost Company indicates?
Chapter1: Introduction To Finance For Entrepreneurs
Section: Chapter Questions
Problem 7DQ
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,