The corporate charter of Martin Corporation allows the issuance of a maximum of 4,000,000 shares of $1 par value common stock. During its first three years of operation, Martin issued 3,200,000 shares at $15 per share. It later acquired 30,000 of these shares as treasury stock for $25 per share. Instructions Based on this information, answer the following questions: (a) How many shares were authorized? _______________________ (b) How many shares were issued? __________________________ (c) How many shares are outstanding?________________________ (d) What is the balance of the Common Stock account? ______________________ (e) What is the balance of the Treasury Stock account? ______________________
2) The corporate charter of Martin Corporation allows the issuance of a maximum of 4,000,000 shares of $1 par value common stock. During its first three years of operation, Martin issued 3,200,000 shares at $15 per share. It later acquired 30,000 of these shares as
Instructions
Based on this information, answer the following questions:
(a) How many shares were authorized? _______________________
(b) How many shares were issued? __________________________
(c) How many shares are outstanding?________________________
(d) What is the balance of the Common Stock account? ______________________
(e) What is the balance of the Treasury Stock account? ______________________
3) 3) The following information is available for Evans Corporation:
2021 2020
Average common
Average total stockholders' equity 2,000,000 1,500,000
Common dividends declared and paid 72,000 50,000
Preferred dividends declared and paid 30,000 30,000
Net income 360,000 300,000
Instructions
Compute the return on common stockholders' equity for both years. Briefly comment on your findings.
2020:
2021:
4) Halpern Corporation is authorized to issue 1,000,000 shares of $3 par value common stock. During 2021, its first year of operation, the company has the following stock transactions.
Jan. 1 Paid the state $5,000 for incorporation fees.
Jan. 15 Issued 500,000 shares of stock at $6 per share.
Jan. 30 Attorneys for the company accepted 500 shares of common stock as payment for legal services rendered in helping the company incorporate. The legal services are estimated to have a value of $7,000.
July 2 Issued 100,000 shares of stock for land. The land had an asking price of $900,000. The stock is currently selling on a national exchange at $8 per share.
Sept. 5 Purchased 15,000 shares of common stock for the treasury at $8 per share.
Dec. 6 Sold 11,000 shares of the treasury stock at $11 per share.
Instructions
Journalize the transactions for Halpern Corporation.
| Date | Account Titles and Explanation | Debit | Credit |
5) The following stockholders' equity accounts, arranged alphabetically, are in the ledger of Star Corporation at December 31, 2021.
Common Stock ($5 stated value) $2,200,000
Paid-in Capital in Excess of Par—
Paid-in Capital in Excess of Stated Value—Common Stock 800,000
Preferred Stock (8%, $100 par, noncumulative) 500,000
Treasury Stock—Common (10,000 shares) 130,000
Instructions
Prepare the stockholders' equity section of the balance sheet at December 31, 2021.Include shares issued and outstanding for both preferred and common stock.
STAR CORPORATION
Partial Balance Sheet
December 31, 2021
| Stockholders' Equity | ||
| Paid in capital | ||
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