Financial Accounting (5th Edition) (What's New in Accounting)
5th Edition
ISBN: 9780134727790
Author: Robert Kemp, Jeffrey Waybright
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 10, Problem 45BE
1.
To determine
Prepare the journal entries for the issuance of stock and for declaration and distribution of the 5% stock dividend
2.
To determine
Prepare the statement of stockholders’ equity for the year ended December 31, 2018 of Incorporation U.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Learning Objective 6: Report stockholders’ equity) Lima Corp. has the followingstockholders’ equity information:Lima’s charter authorizes the company to issue 4,000 shares of 11% preferred stock withpar value of $200 and 700,000 shares of no-par common stock. The company issued 1,000shares of the preferred stock at $200 per share. It issued 350,000 shares of the common stockfor a total of $512,000. The company’s retained earnings balance at the beginning of 2018 was$75,000, and net income for the year was $100,000. During 2018, Lima declared the specifieddividend on preferred and a $0.10 per-share dividend on common. Preferred dividends for 2017were in arrears.Requirement1. Prepare the stockholders’ equity section of Lima Corp.’s balance sheet at December 31,2018. Show the computation of all amounts. Journal entries are not required.
(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.
4. Notebook Company had the following transactions in 2019, its first year of operations.
Issued 2,000 shares of common stock. Stock has par value of $1.00 per share and was issued at $50.00 per share.
Issued 100 shares of $100 par value preferred stock. Shares were issued at par.
Earned net income of $95,000.
Paid dividends of $5,000.
At the end of 2019, prepare the stockholders’ Equity section.
Chapter 10 Solutions
Financial Accounting (5th Edition) (What's New in Accounting)
Ch. 10 - What are the four baste rights of stockholders?Ch. 10 - Assume you are a CFO of a company that is...Ch. 10 - Prob. 3DQCh. 10 - What accounts, if any, are involved in the journal...Ch. 10 - With which type of stock would dividends in...Ch. 10 - What accounts are affected by the declaration and...Ch. 10 - What are some of the reasons for issuing a stock...Ch. 10 - Prob. 8DQCh. 10 - What could you reasonably conclude if a company...Ch. 10 - Prob. 10DQ
Ch. 10 - Prob. 1SCCh. 10 - Prob. 2SCCh. 10 - Prob. 3SCCh. 10 - Prob. 4SCCh. 10 - Prob. 5SCCh. 10 - Prob. 6SCCh. 10 - Prob. 7SCCh. 10 - Prob. 8SCCh. 10 - Prob. 9SCCh. 10 - Prob. 10SCCh. 10 - Prob. 11SCCh. 10 - Prob. 12SCCh. 10 - Stockholders' equity terminology (Learning...Ch. 10 - Stock issuance (Learning Objective 3) 5-10 min....Ch. 10 - Issuance of stock for cash and noncash assets...Ch. 10 - Prob. 4SECh. 10 - Prob. 5SECh. 10 - Prob. 6SECh. 10 - Prob. 7SECh. 10 - Accounting for cash dividends (Learning Objective...Ch. 10 - Prob. 9SECh. 10 - Prob. 10SECh. 10 - Prob. 11SECh. 10 - Prob. 12SECh. 10 - Prob. 13SECh. 10 - Prob. 14SECh. 10 - Prob. 15AECh. 10 - Issuing stock (Learning Objectives 3 7) 10-15 min....Ch. 10 - Prob. 17AECh. 10 - Prob. 18AECh. 10 - Prob. 19AECh. 10 - Accounting for cash dividends (Learning Objective...Ch. 10 - Prob. 21AECh. 10 - Accounting for cash and stock dividends (Learning...Ch. 10 - Prob. 23AECh. 10 - Prob. 24AECh. 10 - Prob. 25AECh. 10 - Accounting for treasury stock (Learning Objectives...Ch. 10 - Prob. 27AECh. 10 - Prob. 28AECh. 10 - Prob. 29AECh. 10 - Calculating return on equity (Learning Objective...Ch. 10 - Prob. 31BECh. 10 - Prob. 32BECh. 10 - Prob. 33BECh. 10 - Prob. 34BECh. 10 - Prob. 35BECh. 10 - Prob. 36BECh. 10 - Accounting for stock dividends (Learning...Ch. 10 - Accounting for cash and stock dividends (Learning...Ch. 10 - Prob. 39BECh. 10 - Prob. 40BECh. 10 - Accounting for treasury stock (Learning Objectives...Ch. 10 - Prob. 42BECh. 10 - Disclosing stockholders equity on a balance sheet...Ch. 10 - Accounting for various stockholders' equity...Ch. 10 - Prob. 45BECh. 10 - Prob. 46BECh. 10 - Prob. 47APCh. 10 - Analyzing stockholders equity (Learning Objectives...Ch. 10 - Analyzing stockholders equity (Learning Objectives...Ch. 10 - Accounting for cash dividends (Learning Objective...Ch. 10 - Accounting for various stockholders equity...Ch. 10 - Prob. 52APCh. 10 - Prob. 53APCh. 10 - Prob. 54BPCh. 10 - Prob. 55BPCh. 10 - Analyzing stockholders equity (Learning Objectives...Ch. 10 - Accounting for cash dividends (Learning Objective...Ch. 10 - Prob. 58BPCh. 10 - Prob. 59BPCh. 10 - Prob. 60BPCh. 10 - Prob. 1CECh. 10 - Continuing Problem This problem continues our...Ch. 10 - Prob. 1EIACh. 10 - Case 2. The board of directors for Atlantic...Ch. 10 - Financial Analysis Purpose: To help familiarize...Ch. 10 - Prob. 1IACh. 10 - Prob. 1SBACh. 10 - Written Communication You just got off the...
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.Similar questions
- E13-26 Journalizing issuance of stock and treasury stock transactions Learning Objectives 2, 3 May 22 Treasury Stock $16,900 Stock transactions for Careful Driving School, Inc. follow: Mar. 4 Issued 27,000 shares of $1 par value common stock at $10 per share. May 22 Purchased 1,300 shares of treasury stock-common at $13 per share. Sep. Sold 500 shares of treasury stock-common at $23 per share. 22 Oct. 14 Sold 800 shares of treasury stock-common at $9 per share. Journalize the transactions.arrow_forwardaffect stockholders' equity during 2021, its first year of operations: January 2 Issues 100,000 shares of common stock for $35 per share. February 6 Issues 3,000 shares of 8% preferred stock for $11 per share. September 10 Purchases 11,000 shares of its own common stock for $40 per share. December 15 Resells 5,500 shares of treasury stock at $45 per share. In its first year of operations, Finishing Touches has net income of $160,000 and pays dividends at the end of the year of $94,500 ($1 per share) on all common shares outstanding and $2,400 on all preferred shares outstanding. Required: Prepare the stockholders' equity section of the balance sheet for Finishing Touches as of December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.) FINISHING TOUCHES Balance Sheet (Stockholders' Equity Section) December 31, 2021 Stockholders' equity: Total paid-in capital Total stockholders' equity $ 0 0arrow_forwardAlexander Corporation reports the following components of stockholders’ equity at December 31, 2018. Common stock—$25 par value, 50,000 shares authorized, 30,000 shares issued and outstanding $ 750,000 Paid-in capital in excess of par value, common stock . 50,000 Retained earnings 340,000 Total stockholders’ equity . $1,140,000 During 2019, the following transactions affected its stockholders’ equity accounts. Jan. 2 Purchased 3,000 shares of its own stock at $25 cash per share. Jan. 7 Directors declared a $1.50 per share cash dividend payable on February 28 to the February 9 stockholders of record. Feb. 28 Paid the dividend declared on January 7. July 9 Sold 1,200 of its treasury shares at $30 cash per share. Aug. 27 Sold 1,500 of its treasury shares at $20 cash per share. Sep. 9 Directors declared a $2 per share cash dividend payable on October 22 to the September 23 stockholders of record. Oct. 22 Paid the dividend declared on September 9. Dec. 31 Closed the $52,000 credit balance…arrow_forward
- can you please help me answer this problem... The following equity information is available for Anne Corp. at January 1, 2020: Common Stock, $1 par 100,000 shares authorized 50,000 shares outstanding 1,000 treasury shares During 2020, the following equity transactions occurred: A) June 1 B) Sept. 31 Anne Corp. issued 300 common shares at $7 per share. Anne Corp. declared dividends of $.25 per share for all shareholders on record on Oct. 15 (hint: don’t forget about the outstanding shares on January 1, 2018, in addition to the 300 shares sold on June 1). C) Oct. 15 Date of record for dividends declared on Sept 31. D) Oct. 31 Anne Corp. paid the amount of dividends owed from the Sept. 31 declaration. Record journal entries for each of these 2020 transactions. If no entry is required for a certain date, write “NO ENTRY.”arrow_forwardMilton Company's charter authorizes 1,000,000 shares of common Graded Discussion stock and 400,000 shares of preferred stock. In its first year of operations during 2018, the company presented the following transactions: • Issued 5,000 shares of common stock. Stock has par value of $0.01 per share and was issued at $30 per share. Earned Net income $200,000 • Paid dividends of $5 per share. Required 1. Prepare the journal entry to record the following: a. Common stock shares issued b. Close out net income to retained earnings c. Dividend paid d. Close out dividend to retained earnings. 2. Prepare the Stockholders equity section of the company's balance sheet at December 31, 2018 and include the following information > information on par values, > the number of shares authorized and issued where necessary and > the sub total for the total paid in capital > total stockholders' equityarrow_forwardTony Corporation began operations on January 1, 2018. The following transactions relating to stockholders’ equity occurred in the first two years of the company’s operations. 2018 Jan. 1 Authorized the issuance of 2 million shares of $5 par value common stock and 100,000 shares of $100 par value, 10% cumulative, preferred stock. Jan. 2 Issued 200,000 shares of common stock for $12 cash per share. Jan. 3 Issued 100,000 shares of common stock in exchange for a building valued at $820,000 and merchandise inventory valued at $380,000. Jan. 4 Paid $10,000 cash to the company’s founders for organization activities. Jan. 5 Issued 12,000 shares of preferred stock for $110 cash per share. 2019 June 4 Issued 100,000 shares of common stock for $15 cash per share. Required: 1. Prepare the share capital section of the shareholder`s equity as at Dec. 31, 2018 and Dec. 31, 2019. 2. Prepare the Jan. 2, 2018 journal entry for the issuance of 200,000 ordinary shares for P12 cash per share assuming: a.…arrow_forward
- Tony Corporation began operations on January 1, 2018. The following transactions relating to stockholders’ equity occurred in the first two years of the company’s operations. 2018 Jan. 1 Authorized the issuance of 2 million shares of $5 par value common stock and 100,000 shares of $100 par value, 10% cumulative, preferred stock. Jan. 2 Issued 200,000 shares of common stock for $12 cash per share. Jan. 3 Issued 100,000 shares of common stock in exchange for a building valued at $820,000 and merchandise inventory valued at $380,000. Jan. 4 Paid $10,000 cash to the company’s founders for organization activities. Jan. 5 Issued 12,000 shares of preferred stock for $110 cash per share. 2019 June 4 Issued 100,000 shares of common stock for $15 cash per share. Required: Prepare journal entries to record these transactions. Prepare calculation showing dividend allocations and dividends per share for 2018 and 2019 assuming Tony declares the following cash dividends: 2018, $50,000, and 2019,…arrow_forwardMilton Company’s charter authorizes 1,000,000 shares of common stock and 400,000shares of preferred stock. In its first year of operations during 2018, the companypresented the following transactions: • Issued 5,000 shares of common stock. Stock has par value of $0.01 per shareand was issued at $30 per share. • Earned Net income $200,000 • Paid dividends of $5 per share. Required. 1. Prepare the journal entry to record the following: a. Common stock shares issued b. Close out net income to retained earnings c. Dividend paid d. Close out dividend to retained earnings. 2. Prepare the Stockholders equity section of the company’s balance sheet atDecember 31, 2018 and include the following information ➢ information on par values, ➢ the number of shares authorized and issued where necessary and ➢ the sub total for the total paid in capital ➢ total stockholders’ equityarrow_forwardThe following equity information is available for Anne Corp. at January 1, 2020: Common Stock, $1 par 100,000 shares authorized 50,000 shares outstanding 1,000 treasury shares During 2020, the following equity transactions occurred: A) June 1 B) Sept. 31 Anne Corp. issued 300 common shares at $7 per share. Anne Corp. declared dividends of $.25 per share for all shareholders on record on Oct. 15 (hint: don’t forget about the outstanding shares on January 1, 2018, in addition to the 300 shares sold on June 1). C) Oct. 15 Date of record for dividends declared on Sept 31. D) Oct. 31 Anne Corp. paid the amount of dividends owed from the Sept. 31 declaration. Record journal entries for each of these 2020 transactions. If no entry is required for a certain date, write “NO ENTRY.”arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
- Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
Dividend explained; Author: The Finance Storyteller;https://www.youtube.com/watch?v=Wy7R-Gqfb6c;License: Standard Youtube License