Prepare the journal entries for the issuance of stock and for declaration and distribution of the 10% stock dividend

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Answer 1

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Chapter 10, Problem 29AE

1.

To determine

Prepare the journal entries for the issuance of stock and for declaration and distribution of the 10% stock dividend

2.

To determine

Prepare the statement of stockholders’ equity for the year ended December 31, 2018 of Incorporation C.

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(Learning Objective 6: Report stockholders’ equity) Doorman Corp. has thefollowing stockholders’ equity information:Doorman’s charter authorizes the company to issue 9,000 shares of 8% preferred stockwith par value of $120 and 700,000 shares of no-par common stock. The company issued 1,800shares of the preferred stock at $120 per share. It issued 140,000 shares of the common stockfor a total of $513,000. The company’s retained earnings balance at the beginning of 2018 was$77,000, and net income for the year was $94,000. During 2018, Doorman declared the specified dividend on preferred and a $0.20 per-share dividend on common. Preferred dividends for2017 were in arrears.Requirement1. Prepare the stockholders’ equity section of Doorman Corp.’s balance sheet at December 31,2018. Show the computation of all amounts. Journal entries are not required.

(Learning Objective 3: Account for the purchase and sale of treasury stock) OnJanuary 10, 2019, Mahlon Design Services purchased treasury stock at a cost of $26 million.On July 3, 2019, Mahlon resold some of the treasury stock for $11 million; this resold treasurystock had cost the company $4 million. Record the purchase and resale of Mahlon’s treasurystock. Overall, how much did stockholders’ equity increase or decrease as a result of the twotreasury-stock transactions?

(Learning Objective 2: Describe the effect of a stock issuance on paid-in capital)Saltwell Industries received $11,500,000 for the issuance of its stock on May 14. The par valueof the Saltwell stock was only $11,500. Was the excess amount of $11,488,500 a profit to Saltwell? If not, what was it?Suppose the par value of the Saltwell stock had been $2 per share, $4 per share, or $7 pershare. Would a change in the par value of the company’s stock affect Saltwell’s total paid-incapital? Give the reason for your answer.

Answer 2

Question

Chapter 10, Problem 29AE

1.

To determine

Prepare the journal entries for the issuance of stock and for declaration and distribution of the 10% stock dividend

2.

To determine

Prepare the statement of stockholders’ equity for the year ended December 31, 2018 of Incorporation C.

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Answer 3

Question

Chapter 10, Problem 29AE

1.

To determine

Prepare the journal entries for the issuance of stock and for declaration and distribution of the 10% stock dividend

2.

To determine

Prepare the statement of stockholders’ equity for the year ended December 31, 2018 of Incorporation C.

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Answer 4

Question

Chapter 10, Problem 29AE

1.

To determine

Prepare the journal entries for the issuance of stock and for declaration and distribution of the 10% stock dividend

2.

To determine

Prepare the statement of stockholders’ equity for the year ended December 31, 2018 of Incorporation C.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 5

Chapter 10, Problem 29AE

1.

To determine

Prepare the journal entries for the issuance of stock and for declaration and distribution of the 10% stock dividend

2.

To determine

Prepare the statement of stockholders’ equity for the year ended December 31, 2018 of Incorporation C.

Answer 6

Chapter 10, Problem 29AE

1.

To determine

Prepare the journal entries for the issuance of stock and for declaration and distribution of the 10% stock dividend

Answer 7

Chapter 10, Problem 29AE

1.

To determine

Prepare the journal entries for the issuance of stock and for declaration and distribution of the 10% stock dividend

Answer 8

2.

To determine

Prepare the statement of stockholders’ equity for the year ended December 31, 2018 of Incorporation C.

Answer 9

2.

To determine

Prepare the statement of stockholders’ equity for the year ended December 31, 2018 of Incorporation C.

Answer 10

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Answer 11

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Answer 12

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Answer 13

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Prepare the journal entries for the issuance of stock and for declaration and distribution of the 10% stock dividend

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Prepare the journal entries for the issuance of stock and for declaration and distribution of the 10% stock dividend

Prepare the statement of stockholders’ equity for the year ended December 31, 2018 of Incorporation C.

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